Bitcoin ATM paper wallet

[Oshosondy]

From the days in the past when I read about paper wallet, it is said to be one of the safest wallets, but the first ones I would have generated would have been all generated online, making use of a site like bitaddress.org directly with my device internet well connected. Many people have been using this means to generate paper wallet which is not safe.

I later know that it is better to get the source and run it offline on a device that is not connected online like new device which its OS has just been installed with no WiFi, bluetooth, NFC and other communication enabled.

I watched a video recently about bitcoin ATM that are generating paper wallet. You can watch this video about it

https://youtu.be/OwAe42aYEQ4

I do not know how bitcoin ATMs are generating paper wallet, is it generating it offline and safely?

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[NeuroticFish]

I do not know how bitcoin ATMs are generating paper wallet, is it generating it offline and safely?

I didn't care about that youtube. Not at all. I just try to use logic:

No matter how safely that paper wallet was generated by that device, you really don't realize that the ATM most probably has a copy of the private key?!
It needs it in case you go to them and claim the printer didn't work or the private key is not good or whatever.

And I guess that you don't expect an ATM handling bitcoin on the blockchain can operate offline...


Did I miss anything?

[PrivacyG]

By asking this question I suppose you do not trust the ATM.  Otherwise, there was no point in asking the question.  Why trust it if I, a stranger, told you it is safe?

Some ATM's do in fact leave you with two options.  Send Bitcoin to your preferred address or generate a paper wallet with your newly purchased Bitcoin on it.  The latter is useful if you forgot to take the address with you.  In this case, you can generate a paper wallet and take care of it later.

I would however not trust an ATM generated private key.  That is because if your coins get stolen from the paper wallet, it would be almost impossible for you to prove you were not the one to empty it.  Say you trusted the ATM producer and the person who runs the business.  But do you trust that no other employee of theirs will have malicious intentions?

After all, there could be a backed up history of everything the ATM prints for business paperwork and in case there is any problem the ATM is running into and your paper wallet could be there.  What happens with this history, nobody knows.  It is definitely a better idea to learn to create your own paper wallet safely.  Do not trust a stranger with this, ever.  Let alone a machine with who knows how many employees behind it.

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Regards,
PrivacyG

[Oshosondy]

No matter how safely that paper wallet was generated by that device, you really don't realize that the ATM most probably has a copy of the private key?!

This is what I am thinking too, I am thinking there can be a way this can be manipulated to generate a known private that can be known to the ATM operators.

I was thinking before if anybody on this forum know how bitcoin ATMs are working in a way the paper wallet are generated, if it is offline or online. I also like what PrivacyG posted as it is indicating that bitcoin ATMs can vary from manufacturer or manufacturer, even if some ATM can generate paper wallet offline, what about others, it can be online. With what ETFbitcoin said, bitcoin ATM is an online machine, probably it is generated online.

There is no bitcoin ATM near my area, I have never used it before, I am just thinking this can help someone on this forum or for us to know the breakdown of how the wallet is generated on bitcoin ATM.

[NeuroticFish]

This is what I am thinking too, I am thinking there can be a way this can be manipulated to generate a known private that can be known to the ATM operators.

I would not go that far. But the ATM operator storing a database (for at least 6 months, but probably forever) with the private keys generated by its devices would be simply normal.
Whether "a rogue employee" (or the operator itself!) sweeps or not those paper wallet after some while, that's another story. I would clearly not take chances.