The crisp scent of autumn fills the air, and this weekend, I savored apple treats, admired the vibrant foliage, and oh yes, made a trip to ensure my Bitcoin custody is fully updated…
If you follow me on X, you’re aware that I manage my Bitcoin with Casa, a provider specializing in multisig security, where I operate several multisig vaults for different needs.
This approach entails keeping various keys and wallets updated, and since I don’t store any key materials at home, it requires a certain level of routine and commitment.
I’ve been self-custodying my Bitcoin since 2020, and I’ve developed some solid practices during that time. However, I often find it notably more stressful compared to traditional setups.
One aspect that always gets me thinking: the firmware update.
As I’ve mentioned previously, I’m not highly technical. My expertise in Bitcoin lies in its history, and while this does require a basic understanding of network theory and architecture, there’s something inherently unsettling about observing digital mechanics and loading progress bars.
I bring this up because it highlights a less known issue associated with the Bitcoin hardware wallets commonly used for self-custody. These devices, referred to as “signing devices” by Coldcard creator NVK, are designed to manage your key materials and sign transactions on your behalf.
Nevertheless, as live digital devices, they are not without flaws. They require regular maintenance. You only need to scroll through a few updates to see individuals losing Bitcoin after firmware updates to grasp the potential risks.
It’s a prevalent issue, often stemming from a malfunctioning hardware device (and a misplaced backup). Combine this with the fact that multisig vaults, which need a combination of keys for transaction signing, are not yet mainstream, and the incidents of lost Bitcoin seem to consistently rise.
The most frequent problem arises when the user fails to update their firmware regularly, postpones it, and later encounters issues, often discovering they’ve also lost their seed phrase in the process.
Here’s Andreasin more detail. Although he doesn’t actually carry out firmware updates, he focuses on managing his seed phrase.
In brief, this illustrates why the realm of self-custody, despite its enhancements, continues to make me feel uneasy. In my situation, I successfully updated my wallets without any significant issues. Only one wallet required a firmware update, which was straightforward and took just a few minutes to confirm that my coins were secure.
That said, I made it a point to verify my other keys in advance, ensuring that I had multiple multisig keys available in case of an emergency, along with my seed backups.
This is what renders Bitcoin custody such an exhilarating endeavor: you can never exercise too much caution. When you operate as your own bank, there’s always a risk that something could go awry.
This article is a Take. The views expressed are solely those of the author and do not necessarily represent those of BTC Inc or Bitcoin Magazine.
