Oddbean new post about login | logout Just a reminder that custodians are always a single point of failure, no matter how trusted the company, no matter how good their operations are, if the incentive to take them on is big enough, criminals will take bigger and bigger risks for that major pay off https://protos.com/gunman-forces-revelo-fund-manager-to-drain-investors-crypto/
multisig or wrench attacked. that is my prediction sadly.
I feel like even a hot wallet is better than what most people are doing and could save so much money and pain, spin one up, and STFU about your stack and you're doing better than a lot of people in this space, sad to see but the ruggings will continue unitl people value self custody
"the former professional poker player admitted that he had failed to prioritize his privacy" Fuck this guy, and fuck anyone who put their money in a "former poker player"'s hands.
Lol It's nuts how some of these people have no business managing a bar tab could manage peoples funds and then still get trusted with millions, too many people are asleep at the wheel and it shows
Everyone who says Blackrock will control Bitcoin fails to fully think through the game theory. If Blackrock has say $1 Trillion in their ETF, the bounty on the heads of the key holders in their multisig is.. $1 Trillion Not $1 Trillion insurable dollars backed by the full faith and credit of the US Empire and the money printer. But rather $1 Trillion worth of liquid Bitcoin which can be permanently and irrevocably moved to someone else’s control in one block’s time. The world isn’t ready for Bitcoin going parabolic.
I wouldn't want to be one of those key holders I imagine you would need armed security at all times, and what is the recovery process should one of the key holders pass on or be compromised? What is the lowest amount of money a key holder would accept to hand ovr their keys? How far would criminals go, just wrenching you or going after friends and family? Like you say a trillion dollar pay off brings all sorts of elements out of the shadows and willing to put in considerable time and effort to come after the weakest part of the security model, which is those people.
I wouldn’t want to be anywhere near a custody arrangement like that. You’d have to imagine that if someone wants those keys they’re going to go a LONG way to get them given what’s at stake, literal nation state level wealth on the line. I assume there are already intelligence operatives working their way in to Coinbase to set this up. IBIT already has $20B+ - imagine what an activist group could do with that kind of uncensorable capital..
Wrench attacks would just be the beginning... What happens with you become the 1%? You usually get hated. For having the simple things in life no one can afford thanks to crazy inflation rates, bread, soup, vegetables. These could all be huge luxuries in the future. I think a wrench attack SHOULD be considered as an act that will and could totally destroy your life. Knowing what people are capable of for even $1000 ... what's the point of living if your family and friends are dead or under attack and terror every day? Remember too that these scammers and criminals aren't going to stop at first attempt either. If they have any brains they most likely would put a GPS tracker on your car and just figure out where your multisigs are hidden too. They would constantly be attempting phone scams, email scams, even to the point of kidnapping you and torturing you. (It happened in the state next to mine.) It's a fantastic thing to self-custody, I endorse it 100%. I just feel that criminals ALSO think it's a great thing for us to self-custody.