The article is a cautionary tale of how hard it is to store large amounts of Bitcoin safely.
It highlights one of the main differences between traditional fiat currencies and cryptocurrencies.
In traditional finance, if you lost access to USD 30,000, then you would contact your bank and they would verify that it really was you and give you back access to your money.
In cryptocurrencies however, you and you alone are responsible for your cryptocurrencies. If you lose access to them or they’re stolen or whatever, then you have no recourse to recover your funds.
It’s extreme personal ownership and responsibility.
I’ve written before about the possible barriers to mass adoption of Bitcoin and other cryptocurrencies. This is one of those barriers. Imagine that you invested USD 1,000 into Bitcoin tomorrow and in 5 years’ time, that investment was worth USD 25,000. But then you couldn’t access it because you lost your wallet and your passwords and your recovery seeds. You’d be gutted wouldn’t you. Plus, who wants to be responsible for securing sums of money of that size?
This Wired article describes this personal responsibility perfectly, right down to the pit of the author’s stomach and in his sleepless nights.
It also highlights just how important wallets and storage solutions in general are and will be in the future. How many Bitcoins have been lost since 2008? Millions and millions of dollars worth (at today’s prices!).
If anyone is looking for a great opportunity to build something in this space or to invest in in this space, then it’s definitely in the wallet/storage area. If you could build a safe wallet that’s easy to use and can store lots of assets on there, then you’d have a winner.
At the moment, I like Exodus a lot and Trezor a lot too.
Unlike the author of the Wired article, I won’t be keeping USD 30,000 (!) on a single wallet. That’s the challenge as this space matures and prices rise. (that USD 30,000 was actually 7 BTC, which at today’s prices is around USD 50,000!)
How would you store USD 1,000,000 worth of Bitcoin?
Answers and suggestions below please!