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>What are the benefits of paper wallets over a hardware wallet or storing it online? If you only have bitcoin on a single hardware wallet, then if that hardwar

>What are the benefits of paper wallets over a hardware wallet or storing it online? If you only have bitcoin on a single hardware wallet, then if that hardware wallet fails to work one day, then you're boned. Paper wallets are easy to maintain and visually verify the integrity of (they're just ink on paper). Definitely recommend people using them keep multiple copies in different locations though. By online: * if you meant in a computer connected to the internet, then if your computer gets malware then it could steal your bitcoin. * if you meant in an online exchange, then you have the above issue (malware could steal your login info) combined with the issue that the exchange could go offline / lose your money / run away with your money. (See MtGox, btc-e, etc.) >Also, is it me or are people more paranoid with their Bitcoins than others with their USDs? If money is stolen from your bank account, then the bank will reverse the transaction. Bitcoin transactions can't be reversed like that, so their security is solely in the user's hands.

brndnmtthws 9y ago
This is misinformation. Typically you'd use a deterministic wallet[1], which permits you to restore the wallet from a backed up seed phrase. [1]: https://en.bitcoin.it/wiki/Deterministic_wallet https://en.bitcoin.it/wiki/Deterministic_wallet
- AgentME 9y ago
  I assume this was in response to this part? >If you only have bitcoin on a single hardware wallet, then if that hardware wallet fails to work one day, then you're boned. By "only have bitcoin on a single hardware wallet", I meant the case that the user did not back up their seed phrase (such as to a piece of paper). I was trying to hint that the best setup would be multiple paper wallet backups (or the seed phrase written onto multiple papers; I'm not sure it's useful to call that something other than a paper wallet) combined with a hardware wallet for actually making transactions.

brndnmtthws 9y ago

This is misinformation. Typically you'd use a deterministic wallet[1], which permits you to restore the wallet from a backed up seed phrase. [1]: https://en.bitcoin.it/wiki/Deterministic_wallet https://en.bitcoin.it/wiki/Deterministic_wallet

AgentME 9y ago
I assume this was in response to this part? >If you only have bitcoin on a single hardware wallet, then if that hardware wallet fails to work one day, then you're boned. By "only have bitcoin on a single hardware wallet", I meant the case that the user did not back up their seed phrase (such as to a piece of paper). I was trying to hint that the best setup would be multiple paper wallet backups (or the seed phrase written onto multiple papers; I'm not sure it's useful to call that something other than a paper wallet) combined with a hardware wallet for actually making transactions.