The Hidden Psychological Burden of Self-Custody.

[PostQuantumBTC]

What if my house catches fire?
What if my house catches fire?

I have 2 backups, I also memorized it and reciting it every month.

What if someone steals my backup?

I use passphrase wallet.

What if I forget where I stored it?

This is not possible for me.

Do you think most people are psychologically prepared to be their own bank?

I do not now about people but I am prepared.

[goldkingcoiner]

I think we should rather be talking about the illusion of control and freedom with non-self-custody.

Obviously self custody means you are responsible for keeping your own money safe, but the same thing rings true for anything else in your life. Your car, your phone, your valuables...

Giving your money for someone else to hold does not make you invicible it only gives you the illusion of safety due to having given someone else the burden of caring for your valueables/money.

[dothebeats]

Responsibility is spot on. There's just lots of active threats roaming around to those who holds bitcoin. They might not actively chase for the smaller fish, but if you leave your front doors open with the keys somewhere relatively easy to find, they'll take your coins without any hesitation. Even with a hardware wallet, I sometimes get paranoid thinking whether the small amount that I have kept for years is still intact, or just sitting there.

It also pushes you to be vigilant. Given that even the most secure and digitally audited pieces of software are getting infiltrated by threat actors, you can't really trust whether your normal software requesting for update can be trusted or not. That in itself is not bad, it's just that it's exhausting over time.

Not sure about inheritance. I haven't been thinking hard about it given I don't have any heirs to begin with.

[Catenaccio]

I think we should rather be talking about the illusion of control and freedom with non-self-custody.

Obviously self custody means you are responsible for keeping your own money safe, but the same thing rings true for anything else in your life. Your car, your phone, your valuables...

Giving your money for someone else to hold does not make you invicible it only gives you the illusion of safety due to having given someone else the burden of caring for your valueables/money.

In theory and practice, if it is done properly, it's best for security but if people don't have enough knowledge about non custodial wallets, wallet verification, creation (offline), backups, test backups and keep their wallets and backups secured, if they go non custodial, they might lose their bitcoin. I don't say being self custodian is bad, it's very recommended but people must prepare necessary knowledge for their good security practice.

It's fact and challenge but people can go through it easily, and it's not reason why they ignore non custodial wallets, and use custodial wallets just because of convenience and don't require too much knowledge like using non custodial wallets.

[Zaguru12]

But I would change the word "burden" to "responsibility." If someone is very burdened with keeping it, then the best thing for them is to stop being the owner of Bitcoin, since being their own bank is the very condition when interacting with Bitcoin.

I have always agreed with this, bitcoin is an alternative for those who actually think that they can be their own bank, for anyone who isn’t actually confident about having self custody there are still better options to go with which is centralized exchanges ( this option is worse than even fiat in the banks for me) or the new method of owning bitcoin through ETFs (this is like the traditional banks) and in all of this method one should be aware that none comes to self custody but since you’re not confident on yourself then this is the only option out there, except you decide not to own bitcoin at all.

Yes, storing Bitcoin yourself is very difficult. I think an analogy can be drawn here... You lived in civilization, and then found yourself in the jungle, where large predatory animals roam. Most people, unfortunately, will never choose this path. In doing so, they deprive themselves of the opportunity to grow up (to turn from children into adults).

Personally I don’t think it’s hard, for me I think the only risk we all are talking about is about the wallet getting compromised. A wallet can only be compromised if only the hacker has information that you poses a bitcoin wallet. Self custody is simply using cold wallet and simply not exposing your seed phrase to others. If you can find a way to hide your valuable things away from people you can actually do this. What makes it hard is we want something easy and simple.

[Son Of Blockchain (SOB)]

 In life everything that has an advantage should also has some disadvantages too but then we can't overlook self-custody cause of some disadvantages that can be managed properly, I hope you also know that the lose from self custody is mostly based on human errors so if they can be extra careful then self-custody remains the best.
 It's far more better than allowing a third party have access to a wallet where I store my coins that's why I'll never support centralized exchanges over non custodial wallets, it's self-custody anyday and time.

[BlackHatCoiner]

The psychological burden is real and I think most people aren't prepared for it. I used to check constantly the wallet when I started until I realized I was just stressing myself out for no reason.

The inheritance part is the one most people ignore, indeed. Find someone you trust, and provide the instructions. Not the seed itself but enough that they'd know what to do.

[Akbarkoe]

[...]

Do you think most people are psychologically prepared to be their own bank?

Let’s discuss.

I say no, not everyone is ready to become a bank for themselves, therefore with the many educations on how to bank independently, there are still those who trust it to third parties, but even like that we must be ready to become a bank for ourselves because it is the safest way we can do to live better and safer, even though the scary question often comes to mind, it's even better in my opinion, therefore someone who is always afraid must find a way to not be afraid anymore, now there is a lot of education on how to safely store bitcoin by yourself.

[DiMarxist]

One of the first burden of any Long term holder is the burden of preparing the mindset when it comes to Bitcoin investment. Holding Bitcoin on the long run means that one has to be extra careful because you can actually lose your Bitcoin. Preparing your mind psychologically in dealing with security which is a very key aspect of every Bitcoiner is very important. When it comes to inheritance plan I will surgest that investors should let one or two of their family members to know their private key and it most be someone that is trustworthy, so that in case anything happens to you your family people will not lose everything.

[Cryptomultiplier]

One of the first burden of any Long term holder is the burden of preparing the mindset when it comes to Bitcoin investment. Holding Bitcoin on the long run means that one has to be extra careful because you can actually lose your Bitcoin. Preparing your mind psychologically in dealing with security which is a very key aspect of every Bitcoiner is very important. When it comes to inheritance plan I will surgest that investors should let one or two of their family members to know their private key and it most be someone that is trustworthy, so that in case anything happens to you your family people will not lose everything.

It's more or less called the 'dead man switch', where some part of the seed phrase is kept open to trusted close persons while the other part is in custody of maybe a lawyer or in a safety deposit box with directions somewhere on how to get to it when the Bitcoin holder is no more of this world.

While many people don't think activating a dead man switch is necessary because they don't think they would die anytime soon, it's better to always be aware of the worst case scenarios when opting for self custody and sovereignty of accumulated Bitcoin investment, so that the wealth isn't lost to the network and all effort is wasted while the family left behind suffers extra for such secret lifestyle of wealth accumulated that has no way to claim it.

[BitBakerr1]

The psychological burden is real and I think most people aren't prepared for it. I used to check constantly the wallet when I started until I realized I was just stressing myself out for no reason.

The inheritance part is the one most people ignore, indeed. Find someone you trust, and provide the instructions. Not the seed itself but enough that they'd know what to do.

Yeah the psychological burden is actually real, I did same too always checking my wallet, there was a time when I even had a dream that someone stole all my bitcoin in that dream I was depressed and I cried, it was so real when I wake up I was relieved and happy it was just a dream I had some tears in my eyes when I wake up.
It was not easy at then but I decided to make my self more stronger and that was when I stopped thinking about my bitcoin getting stolen, the burden is actually real.

Concerning the inheritance you have said it all, as someone holding good amount of bitcoin you need to tell someone you trust on how to get your bitcoin when something bad happens to you, as for me I have already done that and my mind is relaxed about that area.

[Smartprofit]

But I would change the word "burden" to "responsibility." If someone is very burdened with keeping it, then the best thing for them is to stop being the owner of Bitcoin, since being their own bank is the very condition when interacting with Bitcoin.

I have always agreed with this, bitcoin is an alternative for those who actually think that they can be their own bank, for anyone who isn’t actually confident about having self custody there are still better options to go with which is centralized exchanges ( this option is worse than even fiat in the banks for me) or the new method of owning bitcoin through ETFs (this is like the traditional banks) and in all of this method one should be aware that none comes to self custody but since you’re not confident on yourself then this is the only option out there, except you decide not to own bitcoin at all.

Yes, storing Bitcoin yourself is very difficult. I think an analogy can be drawn here... You lived in civilization, and then found yourself in the jungle, where large predatory animals roam. Most people, unfortunately, will never choose this path. In doing so, they deprive themselves of the opportunity to grow up (to turn from children into adults).

Personally I don’t think it’s hard, for me I think the only risk we all are talking about is about the wallet getting compromised. A wallet can only be compromised if only the hacker has information that you poses a bitcoin wallet. Self custody is simply using cold wallet and simply not exposing your seed phrase to others. If you can find a way to hide your valuable things away from people you can actually do this. What makes it hard is we want something easy and simple.

Why do I think self-custody is always difficult? Because you can store your assets flawlessly for 10 years, taking absolutely correct and proper steps, and then make just one mistake and lose everything. 🙋

That's the difficulty of self-custody... For example, when entering your seed phrase into a cold wallet, you need to make sure there are no video cameras following you. Modern video cameras have very high resolution. They can easily read and identify your seed phrase.

You can also fall victim to a hardware wallet seller or delivery service. Secretly upgrading and modifying a hardware wallet can turn it into a trap. Such a hardware wallet will steal all your satoshis.

Your security system may be impenetrable to ordinary criminals. However, intelligence agencies can easily hack it. For example, they have already learned how to hack switched-off smartphones and laptops. The procedure itself takes only a few minutes.

You can also, for example, disclose your interest in cryptocurrency.  Criminals are unlikely to engage in sophisticated device hacking or cryptography. But they may resort to torture. And that's much worse...

Exchanging cryptocurrency for fiat currencies also carries significant risks. These risks are often underestimated, but for the average person, in my opinion, they are very significant.

[Publictalk792]

Yeah the psychological burden is actually real, I did same too always checking my wallet, there was a time when I even had a dream that someone stole all my bitcoin in that dream I was depressed and I cried, it was so real when I wake up I was relieved and happy it was just a dream I had some tears in my eyes when I wake up.
It was not easy at then but I decided to make my self more stronger and that was when I stopped thinking about my bitcoin getting stolen, the burden is actually real.

Concerning the inheritance you have said it all, as someone holding good amount of bitcoin you need to tell someone you trust on how to get your bitcoin when something bad happens to you, as for me I have already done that and my mind is relaxed about that area.

First indicator of that worry is checking wallet all the time. It requires great deal of psychological gumption to interrupt that cycle, take a step back and pursue not allowing a digital wallet to dictate how you feel. It takes a colossal psychological step to deal with that fear and decide to make oneself stronger.

You take one step in right direction, in terms of securing your inheritance plan, and telling about your setup, this is the way you transform that nagging feeling of anxiety into very sense of absolute peace of mind. A mistake most investors commit is maintaining their backup security in complete secrecy ignoring fact that tragedies strike anytime and this makes the riches of those affected with vise of security closed off permanently. Security does not only mean cold storage, it means ability to go to sleep knowing nothing is going on without you without concern of what is going to happen tomorrow.

[Supreme Donvic]

There is no business or investment in the world that has no risk or challenges if you are investing in Bitcoin you need to understand that even other investments has their own risk and the things you need to protect in order to make that investment successful, I don't really see all these things as a burden to me because I know in order to have a successful investment or business I need to take up some responsibilities, and to protect my Bitcoin and keep it safe is the responsibility I have taken for a better future with Bitcoin.
The only place I know that it is very necessary and complicated is when it comes to the inheritance part but the only thing you should do is to find someone you trust well and give them your Bitcoin wallet password or secret phrase.

[ChisomP]

3. The Inheritance Problem Nobody Talks About Enough.

Let’s just imagine that someone accumulated a very huge amount of bitcoin and then suddenly he or she dies.
If nobody knows where the person’s seed phrase is stored or kept, those bitcoins are lost forever.
A lot of Bitcoin holders prepare for theft but ignore inheritance planning.
Now the question that gives some people sleepless night is how can they remain sovereign while also ensuring their family can recover their Bitcoin if something happens to them for example if they die?


Do you think most people are psychologically prepared to be their own bank?

Let’s discuss.

Good day everyone, I want to talk about this part. I think this is an issue from my own point of view. With the way we are taking privacy and security in this space, there is a huge possibility that someone can die off leaving his or her assets behind, especially if it is a sudden death.

One way I feel this can be tackled is by, handling your bitcoin assets the same way you handle your other assets. For instance, if you own properties, you keep them safe right, and have a lawyer handling everything including inheritance, If you do have a large bitcoin portfolio, I think it will be better to have lawyers involved, not necessarily handling them your seed phrase, but having a document stored somewhere, and giving the location to your lawyer to hand it over to them on your death. The information of the location should be coded in such a way only your family members can understand and have access to it.

[macson]

Self-custody is not a trivial matter, it comes with the responsibility that you, as a holder, have full control over your Bitcoin. This means that security and the things that come with it, as a holder, you need to understand and be prepared for everything. It's a serious matter and not something to be taken lightly.

If someone doesn't understand this and is prepared for full responsibility, they can trust a third party with their assets, but "not your keys, not your bitcoin." If you trust another party, it means they have full control over your Bitcoin. The choice is in your hands.

[Lida93]

A lot of holders always worry and think about a lot of things and they keep asking questions like
What if I lose my seed phrase?

What if you the central platform collapses too? 

What if my house catches fire?

Haven't you being reading about tips on how to safely store your keys by having them in at least two to three different secured locations?

What if someone steals my backup?

Then you're careless. Is most likely you would be careless and someone would still steal your password to whatever centralize service you have your funds stored in.

What if I forget where I stored it?

If you forget where you can forget where you stored your keys then it's possible you can forget which central platform to chosed for funds too.

Let’s discuss.

If anyone finds it difficult to take the responsibility of keeping his own money safe and thereby rather prefer to give away the freedom of being in charge and having to take permission from a third party before accessing his own funds, then I don't think they can handle the responsibility of other equivalent important things of life.

There's no big hassle about self custody.