Self custody is not reliable

[laspol65]

People needs to trust Blackrock, fidelity, and others than self custody, but nothing beats self custody even after what happened, this attack will be an eye opener to why you and I should be picky when it comes to self custody.

Self Custody is still Superior to centralised options, with multi signature setups and 100 Dice rolls your wallet will be more stronger than ever

I am speaking for myself here, I cannot imagine keeping my own assets or my Bitcoins anywhere else. I use a software wallet because I have a small amount of Bitcoins, because I keep my seed phrase in a very safe place. I trust it because I know that the more secure my wallet seed phrase is, the more secure my Bitcoins will be.
 So I cannot transfer my Bitcoins to anyone other than myself or give them to anyone else to control.

[AgriTrack]

I am speaking for myself here, I cannot imagine keeping my own assets or my Bitcoins anywhere else. I use a software wallet because I have a small amount of Bitcoins, because I keep my seed phrase in a very safe place. I trust it because I know that the more secure my wallet seed phrase is, the more secure my Bitcoins will be.
 So I cannot transfer my Bitcoins to anyone other than myself or give them to anyone else to control.

Even those who were using coldcard wallets were sure that they were completely safe because their wallets are not online and there is absolutely no risks at all until this attack took place and stole so many bitcoins from so many people, and now people realize that nothing is always completely secure unless you take extra precautions. If those people had encrypted their wallets with password phrases, they might have not lost their bitcoins even if their seed phrases were exposed to the attackers, but what is done is done, and others will now learn from the mistakes of the victims of this attack for sure.

A lot of people won't be able to easily trust hardware wallets for some time now, they might prefer centralized exchanges over hardware wallets when it comes to the security of their funds, and some will still use them but now will make sure that their wallets have passphrases as well. Those who have old wallets might think of purchasing new ones if they plan to keep using hardware wallets and even those who are not using coldcard will do this for sure, because fear will not let them rest and be easy after this incident.

[Orpichukwu]

If someone is convinced that they are not even capable of handling their own assets, then they shouldn't have assets, it would be better if they just go back to being slaves and served their master according to the commands. That is exactly what these institutions are trying to replicate, but in a bit softer version.

I don’t know the kind of belief that those people even have that it could easily be influenced by an event, as if they were just waiting for a reason for their trust to start failing away. The recent COLDCARD incident was a shock to many of us, but it’s not enough for someone to consider self-custody as a threat.

[Z-tight]

I don’t know the kind of belief that those people even have that it could easily be influenced by an event, as if they were just waiting for a reason for their trust to start failing away.

The Coldcard event is a big one, you cannot take it lightly. People lost their money in a hardware wallet that they trusted to store their life savings and it is unfortunate that they lost it because of some silly firmware bug that the Coinkite developers allowed into their device.

It is easy for you to blame people who are no longer sure about self-custody after this event, because you didn't lose anything. Don't get me wrong, i am not one of such people and i still believe in self-custody and i would only recommend it. However, i can understand why certain people would wonder if custodial storage would work better for them (even though it isn't a good option).

[Shishir99]

If someone is convinced that they are not even capable of handling their own assets, then they shouldn't have assets, it would be better if they just go back to being slaves and served their master according to the commands. That is exactly what these institutions are trying to replicate, but in a bit softer version.

We are actually at that stage already.
The genesis block contained a message: The Times 03/Jan/2009 Chancellor on brink of second bailout for banks.
The main goal of Bitcoin was to eliminate the needing of any trusted middleman. We were supposed to do the transaction between us. There were supposed to be no banks. No exchanges, or no other services that can access our money. But what did we actually do? We are keeping our funds at crypto exchanges. They control the keys, and we see only numbers.

[Dareo]

ETFs are far more reliable than you holding Bitcoin yourself.
Self custody is not reliable, let crypto exchanges do the holding for you.

Instead of trusting some Bitcoin wallet that promised self custody it's better to trust JP Morgan.
It's better to have trust in BlackRock so that you can sleep well in the night.

You can't wake up and see your Bitcoin moved into another person's wallet address.
Never ever trust Self Custody.

After the Coldcard incident, we need to be careful about self custody, but it is a bit of a leap to say that ETF or BlackRock are more trustworthy. The real issue here is being willing to take any risk. In self custody, losing the key or making a security mistake is your own responsibility, while in ETF, you have to rely on the custodian and financial institution.

However, in the current revolution of quantum computing, security is not automatically guaranteed just by having a hardware wallet. How the seed generation or backup is created is also important. And this was the biggest drawback of Coldcard we saw. And in my case, although I do not use a hardware wallet, I do not keep my Bitcoin without a self-custody wallet.

[bitLeap]

Come to think about it, who benefited the most out of this attack?, exactly...
This message might look too early but I'm sure that what's going to be pushed from now on is people needs to trust centralised platforms more.

Coldcard hack is just a target on its users and not on non-costodial storage, we have to understand the relevance of using a non-custodial wallet to that of a custodial wallet and we cannot apply the same challenges currently faced by the user of coldcard as being applicable to every other hardware wallet users or derailed on the integrity of using a non-custodial wallet.

People are too skeptical when this Coldcard hacking case is considered to threaten everyone's non-custodial wallets, when the reality is not that simple. Being worried and alert is a good thing but when it comes to being paranoid that every non-custodial wallet is threatened is clearly overkill.
There is a part of the narrative that the Coldcard hack was carried out by LLM, because the bug has been around for 5 years, this kind of exploitation raises big questions that the involvement of AI to detect the bug.

[wapwapwendy]

Self-custody isn't the problem. Poor security practices are. With proper backups, seed generation and multisig, you can significantly reduce the risks while keeping control of your BTC.

[BlackHatCoiner]

The Coldcard drain is a brutal wake-up call. Seeing guys lose millions while their hardware wallet was literally locked offline in cold storage box is pure nightmare, I understand. But handing your keys over to a suit who can freeze your account at will isn't the solution.

I guess the two paths for Bitcoiners are now either rolling dice or Larry Fink.

[moneystery]

ETFs are far more reliable than you holding Bitcoin yourself.
Self custody is not reliable, let crypto exchanges do the holding for you.

No service can be guaranteed to be 100% secure. Anything carries risks and failures. So if anyone thinks putting their money in ETFs is safer, wait until they run into problems with it.
Because they are merely custodians, they never make asset management more secure. While users may find it easier to manage their assets and avoid the hassle of managing private keys, users are only exposing themselves to greater risk by placing their assets there.
Self-custody is the best way to manage assets. If anyone thinks it isn't, just because of this Coldcard issue, congratulations to those individuals who are now prey to these custodians and exchanges.