Bitcoin Forum

Mycelium's backup method makes you print two QR codes protected by a passphrase. I am assuming that is your public and private keys. I've been told that if I don't hold on to my own public and private keys, I don't really own those bitcoins.

Electrum uses a 3rd party server to hold my private keys, I am assuming, because it is only backed up by a passphrase with no dual QR codes for backup. I do not hold the public and private keys? Same goes for Hive and Multibit?

So, this means I do not own my own private and public keys with Electrum, Hive, and Multibit? So it is not safe because government regulators could for whatever BS reason tell them to freeze my coins because I have no control over the public and private keys?

Is what I am saying true? If not, why?

Thanks.

No. They are stored on your hard drive (don't know about Hive). If you find the Electrum and MultiBit data folders, you will find wallet files. The wallet files contain your private keys and seed. They will be encrypted if you set a password on your wallet. You don't need QR codes for backup at all. They are not necessary.

An HD ("hierarchical deterministic") wallet generates keys from the seed in a repeatable way. When you back up the seed, you are backing up all the keys that the wallet will ever generate. Note that backing up the seed does not back up imported keys.

Electrum servers do not hold your keys. They are generated from the seed (unless they are imported). You are backing up the seed, not a passphrase.


Follow the wallet's instructions. If the wallet does not have a method for backing up the seed and/or keys, then don't use it.

I've always wondered why people don't share master public keys to receive payments. Is it not that safe?

It's safe to share it, but it's not good for privacy, as everyone can see all addresses and balances within that MPK.