The smell of fall in the air, this weekend I indulged in apple treats, watched the leaves change, and oh yes, went to make sure my Bitcoin savings were up to date…
If you follow me on X, you know that I run Bitcoin and Casa, a multisig security provider, and that I use the service to manage several different multisig vaults for various purposes.
This requires keeping the number of keys and wallets up to date, and since I don’t keep any key items at home, it requires a certain level of routine and dedication.
I’ve been saving my Bitcoin since 2020, and I’ve built good habits along the way. That said, one thing that always strikes me is how much more impactful it is than trusted programs.
One thing that always stops me: the firmware update.
As I have written before, I am not super technical. My specialization in Bitcoin is history, and while, I’m sure that requires me to know network theory and architecture, there’s something about looking at digital gears and a loading bar that just makes me very uncomfortable.
I mention all this because it’s a little-known problem with Bitcoin hardware wallets that are widely used for self-hosting. These devices, called “signature devices” by Coldcard creator NVK, do just that, carry your valuables, and sign for you when they do the job.
But, like live digital devices, they are infallible. They need some care. All you need to do is scroll through a few reviews of people losing Bitcoin on firmware updates to know the drawbacks.
It’s a common problem, and the culprit is always a damaged hardware device (and a lost backup). Add that multisig vaults, which require a combination of keys to sign a transaction, are not yet the norm, and the number of lost Bitcoin seems to be sitting high and to the right.
The most common problem – the user does not update his firmware very often, he waits, and later jailbreaks his device, after which he finds out that they again entered their seed phrase incorrectly.
Here Andreas explains the firmware updates in detail, although he doesn’t actually update his firmware, he just carries his seed phrase.
Suffice it to say, it’s an example of why the world of self-control, even if it’s improved, still makes me uncomfortable. In my case, I updated my bags without much problem. Only one bag needed a firmware update, and it was easy. (It takes every 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 plenty of multi-sig keys needed in the worst case scenario, as well as backups of my seeds.
This is what makes Bitcoin storage such a high-octane process: you’ll never notice too much. When you are your bank, there is always a chance that something could go wrong.
This article is a Take it. The views expressed are entirely those of the author and do not reflect those of BTC Inc or Bitcoin Magazine.
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