One bad egg doesn't equals the the rest

[Joy- maker]

It's what made me think this way, my friends are already complaining that hardware wallets aren't safe anymore, one fell and others are already looking like spoilt eggs.

Is there any evil agenda behind this or it's just normal human reaction?

I would say it is a normal human reaction, because once a terrible incident happens human psychology tends to focus on fear and look for someone or something to blame, with time people would start seeing the situation more closely and separate facts from emotions.

As a matter of fact, hardware wallets are the best for storing your Bitcoin investment, and the Coldcard wallet incident has nothing to do with hardware wallets as a concept. So the earlier people understand that, the better for them.

Personally, I won't try to convince anyone to use hardware wallets for their bitcoin investment because every is free to believe what they want to believe.

[CryptopreneurBrainboss]

What if this is it? What if the goals of these people is to strike fear in the mind of holders that giving up their Bitcoin to custodial entities is the only way forward?

While this hasn't been proven to be true but I won't doubt it being the reality because if this guys can fight among themselves to bring their opponents down in the same business, what's there that they won't do to their other competitions which is Non custodial wallets. We have good and well developed (recommended) Non custodial wallets available both hardware and software that can be used comfortably without being worried of your devices getting compromised from situations that aren't under your control like the clouds getting comprised etc. There's always going to be a hidden fight between the DEX and the CEX because of what's at stakes as if one dominated the other completely then they'll lose relevance especially CEX/centralized services that's why they're trying all their best to get all the patronage.

[Asuspawer09]

I mean, there was nothing like a fully secured wallet, 100% secured, right? we could keep on saying that a hardware wallet is the best and most secure wallet, but there are still flaws to it. There are even a lot of times when it encounters a lot of issues and even hackings right, there are also some news of draining wallets on this hardware wallet, if I'm not mistaken.

Well, it's easy to assume that they might be the ones that are causing this, since they would probably be going to benefit from it, if we think about it, maybe they were hiring someone to hack this hardware. Is that what you are thinking? I mean if that is what it is and they are able to do it then it is surely the issue of the hardware wallets. I mean you could strike fear if you make some fake news on the internet but the fact that there are funds missing or wallet that got drained means that they might be some actual issues with it, so it is just inevitable at that point because security is already breached.

It just doesn't make sense to move your funds to banks, since it was even riskier since it was a custodial wallet, after all you don't have control over your funds, and also banks have a lot of security issues as well, it's not like they are 100% secure, since there are also a lot of hacking and phishing incidents as well on your regular banks.

[Sanitough]

Well, we can't stop these people if they stick with current exchanges and stop using hardware wallet. But the fact that there is no 100% secured wallet, centralized or decentralized, then they should be ready to lose their bitcoin in the future especially if they are leaving the full custody and trust to the exchange itself.

However, one can still maximize the security and protection of the wallet funds, that is using the hardware wallet with high knowledge and experience to avoid losing the funds inside in no time. 

[X-ray]

What if this is it? What if the goals of these people is to strike fear in the mind of holders that giving up their Bitcoin to custodial entities is the only way forward?

While this hasn't been proven to be true but I won't doubt it being the reality because if this guys can fight among themselves to bring their opponents down in the same business, what's there that they won't do to their other competitions which is Non custodial wallets. We have good and well developed (recommended) Non custodial wallets available both hardware and software that can be used comfortably without being worried of your devices getting compromised from situations that aren't under your control like the clouds getting comprised etc. There's always going to be a hidden fight between the DEX and the CEX because of what's at stakes as if one dominated the other completely then they'll lose relevance especially CEX/centralized services that's why they're trying all their best to get all the patronage.

A certain famous figure is shilling for their custodial exchange after the incident, it's not wrong to say that there are definitely some people who are trying to throw the dirt when coldcard incident happened and we know who it is.

But I also know that people who are conscious of self custody are smart enough to figure out that Coldcard incident was an isolated incident and didn't affect other hardware wallet.

Centralized exchange also have so many risk of losing money especially once your account tagged as tainted for interacting with random address and data breaches, self custody in this case still the better choice.

[FinneysTrueVision]

The Coldcard hack is as bad as it gets but it’s what I consider a black swan event. This is not a regular occurrence with hardware wallets. Custodians also suffer exploits as we just saw with the Liquid Federation. Depending on the situation, you aren’t always left without recourse, but you also have to trust that the custodian won’t steal from you.

There are different tradeoffs with each. If you can purchase a hardware wallet in a privacy preserving way and can manage the risks, self custody will always be superior in my opinion.

[5W-KILO]

At the end of every warnings online everyone will do what they feel it's best for them.

Hardware wallets aren't perfect and so is every other ways of keeping cryptocurrencies.
There are people who feels like they are doing the best thing by keeping their coins on Cex and till now no bad news.

Someone have adviced me to keep my Bitcoin on Coinbase before, simply because Coinbase is a top crypto exchange, I told them never because of how many centralised exchanges died in the past, when ColdCard fell he came back and said his choice is the best.

I choose what I believe is best for me, keeping my coins in a hardware wallet and adding extra layer of security called Passphrase, I think I will be in good hands this way, but it's understandable that anything can happen.

It's just like living everyday, sleeping and waking up while there is a possibility of death any time any day, no risk no reward anyway.

[abel1337]

The Coldcard hack is as bad as it gets but it’s what I consider a black swan event. This is not a regular occurrence with hardware wallets. Custodians also suffer exploits as we just saw with the Liquid Federation. Depending on the situation, you aren’t always left without recourse, but you also have to trust that the custodian won’t steal from you.

There are different tradeoffs with each. If you can purchase a hardware wallet in a privacy preserving way and can manage the risks, self custody will always be superior in my opinion.

Yeah, it is the first incident of such hacking happened. The thing is before the hardware wallet incident happened, everyone thought that having a hard wallet is a bullet proof way to protect your crypto, it is introduced it to us that way. The after math of that incident is hackers will now target hardware wallet more than ever, as it still is hackable.

There are plenty of options on the market, But yeah, I still believe that hardware wallet is still the top choice for securing our crypto even it has a history of being hacked.

[yudi09]

I know what many people will say, that I am just scared because one hardware wallet got ruined, ColdCard as the main example, but before you said this few people surrounding myself have already started to show this sign.

It's what made me think this way, my friends are already complaining that hardware wallets aren't safe anymore, one fell and others are already looking like spoilt eggs.

Is there any evil agenda behind this or it's just normal human reaction?

Concerns about the safety of assets following the “coldcard” incident are understandable, as not everyone has had an easy time accumulating their assets. Hardware wallets are still safe to use for storing Bitcoin. We shouldn’t conclude that all hardware wallets are unreliable just because of a single incident; rather, this incident can serve as a reminder for hardware wallet users to take extra care to safeguard their assets.
What you need to remember is that criminals never truly stop carrying out their criminal activities.

[shield132]

If everyone is scared of hardware wallet as their safety option and self custody option who wins? Who benefits the most from this? I guess the centralised entities and the banks.

People aren't scared of hardware wallets, they trust hardware wallets more than other wallets but problems arise, which means that they aren't the safest option. Btw no one benefits from this situation, especially centralized entities and banks because hardware wallet users already know why they want hardware wallets and they also know what's the danger of using centralised entities. We have heard many times, not your keys, not your coins.

It's what made me think this way, my friends are already complaining that hardware wallets aren't safe anymore, one fell and others are already looking like spoilt eggs.

Then download Electrum on an air-gapped device and create a Bitcoin wallet that way. Electrum has been proven to be probably the best Bitcoin wallet.

[Webutxo]

Well, we can't stop these people if they stick with current exchanges and stop using hardware wallet. But the fact that there is no 100% secured wallet, centralized or decentralized, then they should be ready to lose their bitcoin in the future especially if they are leaving the full custody and trust to the exchange itself.

However, one can still maximize the security and protection of the wallet funds, that is using the hardware wallet with high knowledge and experience to avoid losing the funds inside in no time. 

The exchanges know how to capture people with incentives, this is why it's difficult to an average Joe that join Bitcoin. Most of the exchanges have captured their attention with all this giveaway, they not only do that they also make them look like they don't know what they are doing because tell me why should exchange prefer you keep money with them and you just let it be when you can do your investigation further.

It's because exchanges doesn't want to lose their customers they create web3 wallet within the exchanges so that the users wouldn't be far from them, it's just like constructing something that has to do with when they say draw your enemy closer. I think it's too late to even be having this mindset for people that want to be using exchanges, almost all the CT that I am following use exchanges than the web3 they claimed to be practicing.

[Findingnemo]

You thought hardware wallets provided the utmost security and when you found that it can also lead to loss then it just raises questions about every kind of that. But it is not the end of it for sure, we had seen hacks of multiple crypto platforms and people just cam eback again evern after losing 100%, so these incidents will only affect the individuals but on the bigger scal it doesn't create much of a difference.

[Chinesebaby]

A well-known and insured exchange is by far the safest way to keep your Bitcoin. These large companies are extremely secure, and they are insured if they get hacked, so you will never lose money no matter what.

It will only be described as the safest until your funds gets frozen by the exchange for either receiving payment from a taint address or doing any other thing that violate the casino's terms and conditions, thats when you will know that this safest you are calling it as the bet place to save your Bitcoin will automatically change. Because for the fact that ColdCard Bitcoin hardware wallet was compromised, that doesn't mean that the rest hardware wallet aren't safe anymore. And for the fact that it grants you full control over the protection of your assets, that makes it the best.

[Queen Julie]

What if this is it? What if the goals of these people is to strike fear in the mind of holders that giving up their Bitcoin to custodial entities is the only way forward?

While this hasn't been proven to be true but I won't doubt it being the reality because if this guys can fight among themselves to bring their opponents down in the same business, what's there that they won't do to their other competitions which is Non custodial wallets. We have good and well developed (recommended) Non custodial wallets available both hardware and software that can be used comfortably without being worried of your devices getting compromised from situations that aren't under your control like the clouds getting comprised etc. There's always going to be a hidden fight between the DEX and the CEX because of what's at stakes as if one dominated the other completely then they'll lose relevance especially CEX/centralized services that's why they're trying all their best to get all the patronage.

If everyone have the mindset that no wallet is fully 100% secured there wont be misunderstanding at all. Custodian wallet and non-custodian wallet, each have their side loop hole. We use the ones we trust, prioritize personal security and see how things go. The same way we have good and well developed non custodian wallet is the same way we have custodian wallet that hasn't been compromise since they came into existence. The DEX and CEX have their own role to play in crypto. I believe there shouldn't be a fight if they all focus on areas where they are better than the other.

[EFS]

You don't need to use hardware wallets to keep your coin off exchanges. Even a small flash drive works.

I don't think you should focus on conspiracy theories. Anything that can be hacked will be targeted. If hardware wallets aren't secure, don't use them. That doesn't mean you should entrust your Bitcoin to an exchange or any other third party service. There are other ways to keep your coins safe. Generally people are too lazy to research these things.

[HelliumZ]

The loss of the ColdCard hardware wallet does not mean that the rest of the hardware wallets will be lost. This isolated incident can be considered as a warning sign for Bitcoin investors.
There are many investors who are not seriously aware of their wallets and their Bitcoin holdings, but after this incident, they will definitely be aware of Bitcoin and their wallets.
Many will think that the Self Custodian wallet has been hacked, which means that now Bitcoin will be safe to keep on central exchanges. But it should be remembered that there may be one rotten fruit in a basket, so it is foolish to throw all the fruits away.

[legiteum]

A well-known and insured exchange is by far the safest way to keep your Bitcoin. These large companies are extremely secure, and they are insured if they get hacked, so you will never lose money no matter what.

It will only be described as the safest until your funds gets frozen by the exchange for either receiving payment from a taint address or doing any other thing that violate the casino's terms and conditions, thats when you will know that this safest you are calling it as the bet place to save your Bitcoin will automatically change. Because for the fact that ColdCard Bitcoin hardware wallet was compromised, that doesn't mean that the rest hardware wallet aren't safe anymore. And for the fact that it grants you full control over the protection of your assets, that makes it the best.

I've spent decades with money in a bank--basically I've had money in a bank since I was 12 years old. Everybody I know is about the same, and between friends, family, coworkers and acquaintances, that would be thousands of people over the years. I also listen to the news, including the local news.

I've never--EVER--heard of anybody losing their money using a reputable financial institution and an insured account. It just. doesn't. happen.

Of course, I don't tend to consort with criminals, so there's that . And I live in the USA, so here there has always been a stable financial system (and if it becomes unstable the price of BTC will drop by 99% as consumer investors sell their risk assets including their Bitcoin, so then it wouldn't matter).

I get that there are a lot of people who live in unstable countries or are... actual criminals who need to hide their money. But for the other 99.9% of the population, self-custody is extremely dangerous compared to the safety of storing something in your name guarded by professionals far away from you, and insured even if they lose it.

[#CapsLOck]

I believe what they are all failing to understand here is that a hardware wallet and the Bitcoin are not synonymous. Coins are not lost if the device is damaged unless it is lost as well, but as long as the recovery seed is safely backed up, coins are not lost. Such an occurrence ought to make individuals more cautious when it comes to their backup and recovery procedure, but not to be so spared of self-custody that they stop backing themselves up. All storage methods come with their own set of risks and knowing about them is more helpful than instead taking one bad incident as the representative of all hardware wallets.

[Loyang]

A well-known and insured exchange is by far the safest way to keep your Bitcoin. These large companies are extremely secure, and they are insured if they get hacked, so you will never lose money no matter what.

It will only be described as the safest until your funds gets frozen by the exchange for either receiving payment from a taint address or doing any other thing that violate the casino's terms and conditions, thats when you will know that this safest you are calling it as the bet place to save your Bitcoin will automatically change. Because for the fact that ColdCard Bitcoin hardware wallet was compromised, that doesn't mean that the rest hardware wallet aren't safe anymore. And for the fact that it grants you full control over the protection of your assets, that makes it the best.

We cannot say that all wallets are bad. The person who says that all Bitcoin wallets are bad because Coldcard was hacked may not know why Coldcard was hacked. There was a weakness in the method of generating the Seed Phrase of Coldcard, that is why they faced this kind of problem.

However, a person can use a Multisig Wallet for more security. Because when a Multisig Wallet is used, when making a transaction, that person will need the approval of two or more people who have created the combination. The problem that we saw in Coldcard, we may not see this problem in the case of Multisig Wallet.

[abaeze]

Whether the COLDCARD incident or something else is true, it has proven that hardware wallets or self-custody are not 100% risk-free custody, but rather they change the nature of the risk and recently, some institutions have been using this situation to gain their market and their custody products. As a result, multiple hardware-wallet security incidents can reduce people's confidence, so it would be a big mistake to rely entirely on custody and keep all BTC in their custody.

If someone thinks neutrally and considering the risks of institutional custody and hardware-wallet or self-custody, it is generally clear which custody is better for users.