The smell of autumn was in the air, this weekend I indulged in apple treats, watched the changing leaves and oh yes, traveled to make sure my Bitcoin holdings are up to date…
If you follow me onyou know I have Bitcoin on me Casaa multisig security provider, and that I use the service to manage a number of different multisig vaults for different purposes.
This requires keeping a number of keys and wallets up to date, and since I don’t keep key materials at home, this requires a certain amount of routine and dedication.
I’ve been managing my Bitcoin myself since 2020 and have built some good habits along the way. That said, what always strikes me is how much more unnerving it is than familiar setups.
One thing that always makes me hesitate: the firmware update.
As I wrote before, I am not super technical. My specialty in Bitcoin is history, and while that certainly requires me to know network theory and architecture, there’s something about looking at digital equipment and a loading bar that just makes me feel super uncomfortable.
I say all this because it is a lesser known problem with the Bitcoin hardware wallets most commonly used for self-custody. These devices are called “signing devices” by the maker of Coldcard NVKIf you do, they will manage your key material and sign on your behalf when you make a transaction.
But because they are live digital devices, they are not infallible. They require some maintenance. All you have to do is scroll past a few updates of people who lose Bitcoin due to firmware updates to know the disadvantages
It’s a common problem and the culprit is always a damaged hardware device (and a lost backup). Add to that the fact that multisig vaults, which require a combination of keys to sign a transaction, are not yet the norm, and the number of Bitcoins lost always seems to go up and to the right.
The most common problem is that the user does not update his firmware often, waits and later breaks his device, only to find that he has also lost his sperm sense.
Here it is Andrew explain firmware updates more detailedwhile he doesn’t actually update his firmware, he just manages his seed sense.
Suffice it to say, it’s an example of why the world of self-control, no matter how improved it has become, still makes me uncomfortable. In my case, I updated my wallet without much problem. Only one of the wallets even needed a firmware update, and that was easy. (It takes a few minutes to prove that my coins are safe).
That said, I had to make sure I checked my other keys beforehand, and that I had multiple multi-sig keys that would be needed in a worst-case scenario, as well as my seed backups.
This is what makes Bitcoin custody such a high-octane process: you can never be too careful. When you are your own bank, there is always a chance that something goes wrong.
This article is a To take. The opinions expressed are solely those of the author and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.