Bitcoin Forum

If hardware wallets became unusable, would confidence in Bitcoin weaken, or would people adapt with new storage methods? Is this even a possibility ?

You’d still have your seed phrase, so you could just import it into another wallet. Honestly, I don’t know how you come up with these wild ideas haha. If something like that ever happened, some people would end up insanely rich. Not everyone keeps their BTC on a hardware wallet anyway, except maybe the whales.

To make it more simpler for you, let me say it in a lame man language other from what the first reply put it.

Bitcoin are not stored on the wallet we use, they are on the blockchain, our kind of wallet only helps us have access to the locking and unlocking keys to connect to the blockchain where our bitcoin is stored, so in case you have a faulty hardware wallet, just import your wallet on another device and that's all, once you have the necessary unblocking keys to it on blockchain.

Bitcoin are stored in blockchain, if hardware wallets/non custodial wallets became unusable, it means the blockchain are no longer safe, if that happens, Bitcoin won't survive at all.

If you're mean about specific hardware wallets, it won't be enough to ruin Bitcoin because we still have an option to create DIY wallets.

Some people wonder if bitcoin would lose trust if all hardware wallets suddenly stopped working. In reality trust in bitcoin doesn’t depend on any specific device or wallet. It is a real strength comes from the network itself  proof-of-work, limited supply and decentralization. hardware wallets are mostly about convenience and extra security. If one day they no longer worked, people would simply move to other options. In the past we have already seen paper wallets, brain wallets, software wallets, and multisig solutions being used. So even if one technology fails, the ecosystem doesn’t stop.in fact, such a situation would likely push new innovations forward. Multisig setups, cold storage air gapped devices or even more advanced methods would quickly take their place.

So even if hardware wallets became unusable bitcoin core trust would not disappear. At most, there might be a short term panic. but in the long run people would adapt and use better storage methods. Thank you🙂

Bitcoin has better issues to worry about than the hardware issue, as you would be able to import your Bitcoin into another wallet. This exercise happens daily between wallets  Although a reduced security concern may cause slight panic.

The unusability of hardware is not feasible, but if it happens, I am sure that alternatives would be provided or the issue would be fixed ASAP.  It can't be permanent.

Hardware wallets are just tools bro, Bitcoin doesn’t live inside them. Lose one tool, another comes up. The network doesn’t care.

You would just put your seed somewhere else, imo, as others said already.

Depends on how many people or wallets would be affected, of course..If all of them - yeah, there would be a bit of panic, but it would die down probably.

If this happen then provably that Bitcoin usage will get affected since we know it will be so hard for lots of people to access their funds stored in their wallets.

There are methods on how they can send their Bitcoin offline https://www.cryptopolitan.com/how-to-send-bitcoin-without-internet/  Maybe this feature will became so popular if it happens that those situation you have mentioned would really happen.

But I believe those situations you have mentioned will never gonna happen.

It's not only hardware wallet that can be used to store bitcoin. We also have hot wallets which I believe that's what majority of newbies with little bitcoin are using currently.

However, we can still store our bitcoin in a cold storage and not compulsory that it must be a hardware wallet. Electrum cold storage is a good wallet to store your bitcoin offline. You only need to download it and generate your keys in an air gapped device and never connect it to the internet. All you need is an old PC to set it up and create a watch only wallet to sign track and monitor your transactions.

Electrum cold storage (https://electrum.readthedocs.io/en/latest/coldstorage.html)

OP is not talking about if internet is no longer working how we can send and receive bitcoin. You need a wallet to store your bitcoin in the blockchain and to also unlock your bitcoin in order to spend them.

What is the relationship between hardware wallets stopping working and Bitcoin survival? Does everyone use hardware only? And does Bitcoin survive depending on hardware wallets? I don't understand where you get the idea to post like this. Bitcoin survival depends on Bitcoin mining. If Bitcoin mining is completely stopped, Bitcoin transactions will not be completed, but hardware wallets are just wallets where Bitcoins can be stored. And hardware wallets have a seed phrase that can be exported to other wallets to access their Bitcoins. So there is no fear of losing Bitcoin here.

Agreed.

This type of event wouldn't affect - all - the wallets probably, only some that would be targeted.

What's the point of starting multiple similar topics asking "what would happen if something impossible happened"? You already have 4 of them here and they make no sense, specially since you just keep opening these topics and go away!

You do not even need hardware wallet when there are easy ways to have airgapped devices. Hardware wallet is not a relevant part of bitcoin. Do not mind me, I mean hardware wallet is not even part of bitcoin at all. If they discontinue to exist, it will have no effect on bitcoin.

It's an impossible and unrealistic fantasy, but if your hardware wallet stops working, you can definitely install it on a software wallet if you save the security of your hardware wallet.
It is impossible that software wallets will not stop working. If the total Internet system were to go down, if there were no Internet in the whole world, then all Bitcoins would probably become worthless. Just as it is unrealistic for the Internet to go down, it would also be realistic for hardware/software wallets to suddenly stop working.

That's one of the dumbest things I've read in a while. One of the safety rules that I know is to always spend at least 1% of the value of your investment on security. For instance if you own a $100k car, you'll want to spend at least $1k on a decent parking spot. If you park it on your own land, make sure there's a fence and a gate that you lock at night and at the very least a motion sensor activated flood light.

The cheapest Trezor wallets cost $25 and most wallets on the market will cost you less than $100!
If you own more than $50k in bitcoin you should either have a dedicated air gapped computer, or a hardware wallet.

If all wallets (hardware and software) stopped, then sure, Bitcoin would be inaccessible. But that’s impossible. Even the network stopping is also impossible. So this question feels kinda nonsense since there’s no way it will happen. Why would the developers shut down their business when they’re making money from it?

No, why would it weaken Bitcoin when everything is stored in the blockchain?

A hardware wallet is just there to protect our Bitcoin from online attacks, and so it's not like our Bitcoin is stored on that physical device. And you to backup your private keys and mnemonic phrase that you can used to restore your Bitcoin if ever your hardware wallet "suddenly stopped working".

If all hardware wallets suddenly stop working, then the blockchain will definitely not survive. Bitcoin is dependent on the blockchain, so if that blockchain stops working, then there is certainly no question of Bitcoin surviving.
The OP has asked a hypothetical question where is it really possible for a hardware wallet to shut down?

I've never used a hardware wallet.  I bought one at one point but quickly discovered that I couldn't import my own private key, so I was no longer interested.  I'm not sure I would want all of my Bitcoin on a hardware device anyway.  I think their development is good for the community and perhaps one day they will lead to a great product, but right now it just seems like a lot of problems for users who use them.

Then another option will come out and we're going to opt-in for it. So, if there will be no more hardware wallets.

We've got desktop wallets, paper wallets, even web wallets if it's only for the sake of storage. But of course, it's not recommended to store all of your Bitcoin holdings to a web wallet.

Maybe someone is going to take that example of mine misleading, I'm only giving an example that there will still be choices for that scenario.

Some other option will come if that happened. Bitcoin is so much popular now that it will automatically open new solutions if hardware wallets stopped working.

If this were to happen, as crazy as it sounds, it's not going to do anything, as other members have said. Perhaps some dislike those hardware manufacturers that should have been fulfilling their role as a reliable one.

This would just be reputational consequences for the manufacturers. Nothing else.

Bitcoin survival doesn't depend on any wallets whether cold or hot, it's survival depends on the Blockchain which I believe is very secured, I know that wallet issues regarding Bitcoin are secondary. Your Bitcoin is not stored in your wallet as others have said, the wallet is the access to your Bitcoin that is safe in the Blockchain, that is why we need to priotize the security of our wallets. If you have your seed phrase intact you only need to import your Bitcoin through another wallet and your Bitcoin is still intact in the Blockchain. If the Blockchain were to be compromised that is when we can panic but so far their is no indications of that happening.

So the dependency on them for security is baseless ?

Why would hardware wallet even stop? The company that is producing this wallets are the ones making profits and they would not even want to stop unless they are being forced to do so by the government but if that happens, it would not affect Bitcoin and that's because every Bitcoin holder has access to their private keys and they can quickly export their wallet to a software wallet or app. That's actually going to be just a very insignificant incident.

It pains me seeing unusual topic like this when op doesn't even know what is hardware wallet entails LoL.
I think you can take some time to read about wallet so you would not come up with unimaginable questions or post that has no logical meaning.

  Maybe op has not took highly concentrated liquor that might have led to post fishing without minding if they are similar or not. The liberty to create new posts without critical analysis whether they are good when read is what had encouraged scenes like this one.  I think Op should endeavor to add volume to his posts so that it can be well substantial with information about his thought.

A hardware wallet provides enhanced security and makes it difficult for your coins to be stolen by common online threats like hacks and malware attacks. Even when you use these wallets, your funds are saved in the blockchain and not the hardware wallet. Even when such a wallet has issues, users can easily import the wallet into a working one. You don't depend solely on the hardware wallet for security,  you still have a major role to play.

You are the first security to your wallet

You don't depend on hardware wallet for security, it is just a medium used by yourself as the holder, if you don't protect your hardware wallet then you also at expenses of losing your Bitcoin.

Some of us haven't used a hardware wallet for storage but still have our funds secured, either way if the impossible to happen ever happens their is always many folds of options.

Bitcoin existed before all these fancy hardware wallets were even a thing, so hardware wallets going obsolete or offline wouldn't be the end of the world and Bitcoin will continue to be used like nothing ever happened... Besides hardware wallets don't even affect the Blockchain network in any way, why would this even be considered as something of a worry..it's not like these are miners or anything that might have some impact on BTC...

A monoculture is bad for resilience most of the time, which doesn't change for hardware. But would the affected fraction of the circulating coins really be that relevant?

But why would hardware wallets be unusable? If it’s only hardware wallets that’s unusable then confidence in hardware wallets will decline but not confidence in bitcoin. Instead people will look for other ways to store their bitcoins. Those who have it in store in hardware wallets will probably go online to see where they can move their coins. Which would have a significant effect.

Indeed true but what is more true is, there isn’t a chance that all the hardware wallets would ever stop working making all the coins within it lost to the network. There are always developers looking out for what possible threats that Bitcoin might face and the best way to make amends. Take the block size for an example, it was increased just when there was a need. When the hardware wallets proves to be of less use, there would be some more efficient storage to replace it.

Hardware wallet is just layer of security around the mechanism of how bitcoin address/wallet works.

You don't even need it in the first place, you can be creating your own seed phrase or private key with pencil and paper and you can use it through any bitcoin wallet.

Even if hardwallet doesn't exist, bitcoin will still works flawlessly.

Bitcoin goes live in 2009 and the first commercially available hardware wallet was launched in 2014.
Guess what happen between those years where hardware wallet didn't existed?. Yes people use desktop wallet, always has been.
I hope this answers it clearly.

Yeah for most of the OGs here they never used hardware wallets, or at least not since the beginning.

You used a software wallet and it was possible for it to be more secure than a hardware wallet by following some certain cold storage air gap techniques. It was more work to get a transaction broadcasted than with a hardware wallet but it was free and very secure.

So even if they all stopped working you could always go back to that method.

I agree, especially when we are talking about methods where our custody is in our own hands, we are the ones responsible for the funds on such wallets, and in 90%, what we do and how we do it outline whether our funds will be alright or not.

Do people still use desktop wallet ? Would they switch back to them if forced to do so ?

Hardware wallet is purpose-built computer. It's like raspberry pi but created for one sole purpose of storing bitcoin with custom os, parts, chips, etc.
Saying all hardware wallet suddenly stopped working is like saying all computer in this world suddenly stopped working. It won't happen.

Moreover, hardware wallet is just a computer that have seed phrase in it, the seed phrase can be used anywhere outside the hardware wallet as well.
Bitcoin will be fine.

This is interesting and correct- BTC are technically stored in the blockchain and we have our corresponding seed phrases as a backup for most wallets.

Assuming that all hardware wallets are gone, then we can technically transfer our BTC to exchanges. However if we are talking about the blockchain and on how it became infected with hacks, then BTC would long be gone due to its ultimate purpose destroyed.


I also agree with you.

With all the years of spending time in this forum, almost all of my BTCs are storked in both software wallets and exchanges. Even if hardware wallets are gone, you can still use BTC but there will be a compromise in its safety.

I think an experienced user will just use Electrum or something else to manage their coins instead of relying on an exchange. It's such a start to move from a self-custody option to a centralized platform like that. Not to mention if HW is gone for whatever reason, then there's a higher chance that the platform is using software that has questionable security, too. If they use Electrum or something similar, then why would we have to rely on them instead of securing our wealth ourselves?

I thought Electrum was also a hardware wallet. Isn't it ?

No, Electrum is not a hardware wallet.

Electrum is an open source wallet, it can be used both online and offline. When connected online it serves as hot wallet and when offline connected to an air-gapped device it serves as a cold wallet.

Electrum can also be used in connection with a hardware wallet, the hardware wallet stores the keys offline while the Electrum software runs on your computer online or offline (air-gapped).

Hardware wallet is something physical... Electrum is a software.

Where do you really think that the digital assets in your hardware wallets are stored? Hardware wallets are not a storage, they work just like paper wallets and others, what many don't get is that those digital assets are all stored on the blockchain, hardware wallets only help you to keep your keys more secured compare to other available bitcoin wallets.

If your hardware wallet becomes unusable you can import your recovery seed into another bitcoin wallet, it doesn't have to be from the same company who created the hardware wallet, there are many options available so people will look for another Bitcoin wallet and keep managing their coins.

Electrum isn't a hardware wallet, it's a software wallet for PC and android version is available and they are open
source - https://electrum.org, verify the signature before you installed any package on your system.

If hardware wallets stopped working today, there is nothing that is going to happen, only people that refused to back up their seed phrase will be the ones affected because no seed phrase, no access to Bitcoin. Anyone with a seed phrase can open another wallet and spend their Bitcoin, send to another wallet or may decide to keep it there because Bitcoin are not store on the hardware, they are store on the blockchain.

My obky fear is that people might end up using centralized platform  but the question we are not asking OP,  why does he think hardware wallets is going to stop working? There is no any reason behind it, the company isn't dead to let theit business down, it's not just possible.