[DaSHacka]

How is this any different from just using a Yubikey?

I fail to see how cryptocurrencies are in any way unique in this regard.

[olalonde]

I don't know, I've never used one. Can keys stored on a Yubikey be restored from a 24 word seed + passphrase? Do Yubikeys self-destroy after 3 incorrect PINs?

[DaSHacka]

No, but that's the whole point. One less avenue for exploitation. You would have to physically destroy the device, and find an exploit in the smartcard on the chip itself to obtain the private keys.

[olalonde]

Then it doesn't solve the "key loss happens" problem. You lose/break/damage your device and your keys are gone.

[DaSHacka]

You're supposed to register more than one key, and leave the other on standby.

A common practice is one Yubikey on your keyring, another left at home (optionally left in your Desktop or a computer that doesn't leave the house)