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Author Topic: Denarium multisig coins?  (Read 388 times)
macman
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March 13, 2017, 03:51:35 PM
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Hello everyone,

I'm new to bitcoin and I'm still trying to get a grasp of how everything works.

I'm considering buying multisig coins from Denarium (they sell physical bitcoins), has anyone here done that and able to break down the process in simple terms?

The company seems trustworthy, but is there any risk on my part when doing a multisig transaction? I have ordered a Ledger Nano S hardware wallet to store the bitcoins on.

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Senor.Bla
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March 13, 2017, 04:29:15 PM
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Hello everyone,

I'm new to bitcoin and I'm still trying to get a grasp of how everything works.

I'm considering buying multisig coins from Denarium (they sell physical bitcoins), has anyone here done that and able to break down the process in simple terms?

The company seems trustworthy, but is there any risk on my part when doing a multisig transaction? I have ordered a Ledger Nano S hardware wallet to store the bitcoins on.


I'll answer this one backwards. Like most of the time with Bitcoin there is a risk with the end user. You. Bitcoin is safe, but if you don't know what you are doing, then accidents and scams happen. physical coins have the private address on the back of the coin (covered). Since you did not put it there, someone else must have done so. Therefor there is a chance that someone knows it and would be able to spend the coins once the address is loaded. Therefore you can use a 2 of 2 multisig. This mean that the coin has one private key as always but you need a second private key to access the funds. This second private key is provided by yourself and therefor only you know it. Unless you made a mistake or showed it to somebody, which proves my first point. Since you are new to Bitcoin i can only suggest to learn more about it and maybe play around with multisigs. Just so you know what you are doing if you decide to order physical coins.

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March 14, 2017, 12:18:00 AM
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I'm considering buying multisig coins from Denarium (they sell physical bitcoins), has anyone here done that and able to break down the process in simple terms?

The company seems trustworthy, but is there any risk on my part when doing a multisig transaction? I have ordered a Ledger Nano S hardware wallet to store the bitcoins on.

Are you sure you want physical bitcoins? A physical bitcoin is really just a kind of paper wallet. The difference is it's made by third party, ideally one who is trusted, and hides the private key for later redemption. The idea behind physical bitcoins is they can be traded and reused for the value they contain. As long as the private key isn't exposed the value should be safely stored on the coin. The problem is nobody can really be sure if the private key is ever exposed. The original physical bitcoins by Casacius were hacked successfully revealing the private key.

If you buy a multisig coin from Denarium the only danger is in generation and use of your part of the multisig. You must be sure the multisig address provided does in fact work with the private key for the second signature known only by you. If so then yes it's safe. Again, though, I'm not sure why you would want to own such a coin. It's unlikely you could trade it successfully because the recipient isn't sure which private keys may have been exposed. You can hold the same value in a normal paper wallet which you generate yourself. I hope this makes sense.

TrustedCoinTrades.com - Peer-to-Peer No ID Trades - Multisig Safety
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March 14, 2017, 07:15:09 AM
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I'm considering buying multisig coins from Denarium (they sell physical bitcoins), has anyone here done that and able to break down the process in simple terms?

The company seems trustworthy, but is there any risk on my part when doing a multisig transaction? I have ordered a Ledger Nano S hardware wallet to store the bitcoins on.

Are you sure you want physical bitcoins? A physical bitcoin is really just a kind of paper wallet. The difference is it's made by third party, ideally one who is trusted, and hides the private key for later redemption. The idea behind physical bitcoins is they can be traded and reused for the value they contain. As long as the private key isn't exposed the value should be safely stored on the coin. The problem is nobody can really be sure if the private key is ever exposed. The original physical bitcoins by Casacius were hacked successfully revealing the private key.

If you buy a multisig coin from Denarium the only danger is in generation and use of your part of the multisig. You must be sure the multisig address provided does in fact work with the private key for the second signature known only by you. If so then yes it's safe. Again, though, I'm not sure why you would want to own such a coin. It's unlikely you could trade it successfully because the recipient isn't sure which private keys may have been exposed. You can hold the same value in a normal paper wallet which you generate yourself. I hope this makes sense.
At first i was also having my doubts if a newbie needs physical coins, but at the end it is his decision and maybe he would like something more pretty to hold his coins. I don't think we will use physical coins to trade Bitcoin like we do with cash today. And if, then it will be most likely something like opendime or a new solution. IMHO Bitcoin is more and more leaning towards being a store of value rather than a cash replacement, so a physical coin might add to this. I see them as items for collector and if in good shape (unused, since you can only use it once) there have the potential to go up in value. So by all means go and by physical coins, but don't do it for the wrong reasons.

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March 15, 2017, 01:21:21 PM
 #5

Appreciate the replies, guys. Good info.
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