VLOG 196: HARDWARE WALLETS ARE SCAMS

trevonjb (74) in trevonjb • 7 years ago

Now, todays video may be a little controversial as I have never heard anyone come out with this opinion on Bitcoin hardware wallets. But hey, it's my opinion. I think hardware wallets for cryptocurrencies are scams. And in todays vlog I talk about why. Release the trolls!

Enjoy!

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7 years ago by trevonjb (74)

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novina (60) · 7 years ago

Maybe they are not scams but I don't like them.

blockchainbilly (51) · 7 years ago

Tre gone say what he wanna say......

kyle.anderson (60) · 7 years ago

Wrong. If you are storing more than a few thousand dollars in crypto assets, they are definitely the smartest way to keep your keys safe.

A hardware wallet simply stores your private keys on a secure hardware device. Unless you are keeping the only copy of your private key on a piece of paper. Nothing is more secure.

The whole point is the private keys don't leave the device.

They are immune to viruses or anything along those lines. The keys can not be removed from the secure element. Even if you use a paper wallet to keep your private keys, you have to import them into software at some point.

Even if you break your hardware wallet, and you have the key phrase you are completely secure. You lost your money because you failed to have a recovery method. Keeping your BTC on your offline computer

They are not a scam...

bitcoinsig (55) · 7 years ago

Your also not including the fact that at least for the trezor, it has an on board real random number generator chip. This ensures that the signatures do not expose your private keys. Most software uses a psudo random number generator, which has caused many people to lose coins and causes people to generate keys that sometimes already have crypto on it! To date no one has hacked the coins from a Trezor device when used properly. It offers more redundancy then a simple paper wallet as well, especially if you use a safe deposit box.

kyle.anderson (60) · 7 years ago

Well yeah mostly.

There is no such thing as a real random number generator.

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kyle.anderson (60) · 7 years ago

Followed ya. You know what your talking about. Need more of that on steem.

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jds1000 (25) · 7 years ago

So following this logic wouldn't it be just as fair to say, "I lost my bitcoin private key - bitcoin is a scam." -
They are not a scam.

rumen.sim (28) · 7 years ago (edited)

.

wthomas (56) · 7 years ago

If it breaks you can get another one and restore it with your personal passcode and seeds.

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scrilla (44) · 7 years ago

Thanks for the heads up!

Been thinking about getting a hardware wallet recently. I'll give it more thought

skytrex (59) · 7 years ago

Hardware wallets are the best /sarc😂😂😂

g-no (51) · 7 years ago (edited)

Sorry dude...don't agree with this one AT ALL.
I believe the safest way to keep your private keys safe are in a hardware wallet where even you don't know them.
Even if your laptop/PC is infected with malware, my understanding is that the wallets are supposed to protect your private key info because they're stored on the wallets themselves and not copied or cached to the laptop/PC when you're making a transaction.

Ensure your recovery password(s) are kept safe in a couple of places (think about using something like cryptosteel where your recovery phrase is etched in resistant metal) so if you need to configure another wallet to access your crypto accounts you can.
Incorporate a 'duress' account on the wallet where you effectively keep your main crypto holdings in an account whose recovery is protected by one further password which you'll only ever remember in your head and a 'duress' account you can access in times of a brute force attack (e.g. man standing over you with a crowbar demanding crypto with menaces).

s3rg3 (67) · 7 years ago

Just in time as I was just thinking about buying one. But you made it clear I don't need it. You are a moneysaver!

coincentrado (57) · 7 years ago

opinizeunltd (57) · 7 years ago

Thanks for clearing that up. No need to be paying extra for a false sense of security, especially when a paper wallet serves the same purpose. I had been going back and forth about it but you just convinced me to go the paper route and just secure my codes.

pastzam (55) · 7 years ago

Yes, you are controversial!!! But thats what i like and that why i follow you!!. Keep posting from your heart and mind.

kyle.anderson (60) · 7 years ago

Controversy without logic is not what you should be looking for.

pastzam (55) · 7 years ago

Now I'm confused should I buy a hard wallet or not??

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kyle.anderson (60) · 7 years ago

If you have a significant investment in crypto.

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pastzam (55) · 7 years ago

Thats true!!

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antv (50) · 7 years ago

Mind Blown

zaragast (67) · 7 years ago

I'm usually using an online wallet, because the hard wallet is expensive and I prefer to invest in crypto

kyle.anderson (60) · 7 years ago

Well that is very insecure.

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vutran7 (43) · 7 years ago

expensive to compared to what? compared to the amount of cryptos you own? kinda shooting yourself in the foot with that reply.

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cryptodragon313 (43) · 7 years ago

Agreeded about the hardware wallets tre and good analogy about the vca cords 😝 "Can't find one anywhere".

arthuralonzo (45) · 7 years ago

Wow that's crazy. Glad I never went through with getting a hardware wallet

trevis (38) · 7 years ago

I am glad to here someone in your position ask all the same questions I have about hardware wallets !

gduran (69) · 7 years ago

Frankly I'm not even sure what a hardware wallet is, so I'm not really worried about it, I'm not about to use something I don't even know what it is, and with this video I don't want to know what it is.

gary-wood (48) · 7 years ago

Hardware wallets for <$2000 of BTC is probably not worth it but if you are using more i think you should use 2nd level security tier like hardware wallet.

spikykevin (63) · 7 years ago (edited)

Store BTC in the Da Cloud ~ i agree with trev too!

steeming4 (45) · 7 years ago

a rising tide lifts all boats

deserdray (40) · 7 years ago

THANKGOD. i was going to buy one to store my future investments.

team101 (61) · 7 years ago

Watching and learning. Thank you for this information!

nesstopher (43) · 7 years ago

Electrum and paper wallets!! Just gotta hold those keys thas right! looks like you saw a hot girl on the side of the road at the end of that vid lol

wthomas (56) · 7 years ago

or a naked man.

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nutritionist (47) · 7 years ago

Yeah, I see. If it gets broken, that will be a problem.

bitcoinjake09 (57) · 7 years ago

i don't understand the prophesy or your hieroglyphic shirt? does it mean Tre will be a millionaire in 2018?? ;) BTC: 1EVSwPE3J5KJLBuYZ6jzqRzscPSL21QCMa

hms818 (61) · 7 years ago

Totally agree.. hardware wallets are pure scams... best alternative option would be a paper wallet...

vutran7 (43) · 7 years ago

blockchain.info itself has gone down .

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dreamrafa (66) · 7 years ago

Wow, i see so many different opinions on this matter... Really have to dig deeper...

xiobus (47) · 7 years ago

I see both sides of the argument.... currently most exchanges you have to use their wallet... but if your holding... then you want viruses and hackers to not be able to get your keys... but if your in a hardware wallet ... you cannot back it up if its keys are completely locked inside.. if you can get the key then you can also do without it... if it breaks your out of luck... when they get out dated you can just get a new one though... really its about keeping your keys out of reach... a lot of peoples computers are just to vulnerable to loosing them... personally most of my keys I store in my encrypted password manager... with a few offline... if I was going to hold or privately trade a large amount then I'd probably get a hardware wallet or invent one that works they way they should... where I can recover it but only I can... and where if it breaks or gets old im good... and i rarely pull the key off it... let the wallet send the transactions.. but yeah most hardware wallets are a slight bit of a scam

pleb (38) · 7 years ago

I always use online wallets just because hardware wallets cost a good bit and even though they are offline I'd rather be able to quickly trade using an online wallet.

victorvazco (40) · 7 years ago (edited)

I've had my ledger wallet since last year and have sold a couple as well. This gives me the security that I have the funds available with me and that no one can hack it by any means nor do I have to rely on some other method. I personally love it and I recommend them as well. The ledger blue also uses bluetooth technology.
If you're interested, buy yours here: https://www.ledgerwallet.com/r/efb3
Please upvote,reply,resteem and follow @victorvazco , thank you for being awesome!

freshstuff (57) · 7 years ago

@trevonjb another banger ,great vlog video. Keep it fresh. 😉

P.s i wondering why these guys coment straight away after your post upload. that means ,they even doesnt seen the video ,haha 😀😀 show some respect .

jakeag (46) · 7 years ago

yo im a youtube follower. Good steemit q and a. ill upvote your stuff

dragonshadowlv (43) · 7 years ago

I don't think they're a scam. I do think that the design of them could use some work and people's understanding of them and how to use them definitely needs some work.

andre248 (38) · 7 years ago

Very interesting. I'm just going to keep all my BTC and other cryptos diversified on hardware and online wallets

gindor (52) · 7 years ago

Just heard somebody who purchased one. I Am not realy fond of it i got to say. Have a bit of the feeling like with carkeys.. where Did i leave my carkeys again? Just 5 minutes ago I left them on the table.. or didn't I??

lumlum85 (47) · 7 years ago

GOOOD OLEEEEEEEE INTANGIBLE COIN TALK! :)

Makes my day! lol

ranma187 (51) · 7 years ago

Lol gotta make sure you are wearing deodorant for your Video!!! Can't wait to learn more!

licklake (52) · 7 years ago

Some good points, some bad ones. Nice video anyways :)

martinst (46) · 7 years ago

I love your post! Good job! Please follow me @martinst

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flatearth (60) · 7 years ago

Daaaamn. Tre went there! :)

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coocoocachoo (35) · 7 years ago

To your point on if you drop your ledger in water or if usb's are not available in 10 years, as long as you have your seed you can recover your coins.
You can enter your seed into a Bip39 Mnemonic Code Converter which will generate all private and public keys along with addresses where you can then check for the balance of your coins. And then import the private keys into any wallet of your choosing.

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rhino (56) · 7 years ago

Dude, are you trolling?

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timbrockley (52) · 7 years ago

useful info

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wthomas (56) · 7 years ago

Says the guy who lost 3 BTC due to negligence.

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arthuralonzo (45) · 7 years ago

Wait a [email protected] about the wallets on your phone. Are they even safe ??

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melowd (3) · 7 years ago

@trevonjb I agree completely with you. Nice contente!

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reicor (31) · 7 years ago (edited)

Not really sold on this one. Paper wallets seems to be the most common sense approach to simply because it can't be hacked online. I thought about buying one months ago and at the time it didn't really make sense. When I'm over 100k then I may reconsider. Thanks @trevonjb

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xeleos (46) · 7 years ago

Thank you for your opinion, definitely something to consider!

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greatmb (42) · 7 years ago

I like my software wallets myself. With you on this one Tre!

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siersod (60) · 7 years ago

when someone tells me "HARDWARE WALLETS ARE NOT SCAMS"

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megaman (41) · 7 years ago

hey bro good info

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cerebralace (58) · 7 years ago

Great video as always Trevon! While some hardware wallets are more sketchy than others, in general it is much safer to keep your coins in a wallet as opposed to on the exchanges. The DDOS attacks on Poloniex and hacking of Bitfinex are examples of the dangers of keeping coins on exchanges.

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doc-speakeasy (53) · 7 years ago

My next move is getting myself a wallet, was just looking at the different versions last night. This post was great timing, thank you for this! I'll be sure to keep this in mind!

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immetal6669 (52) · 7 years ago

Great vid Tre! I paper wallet...always worried about one of these companies going down.

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screenname (66) · 7 years ago

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riostarr (68) · 7 years ago

i like your post, thanks for sharing

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mrtiotio (39) · 7 years ago

Hardware wallets aren't scams, they do the things they advertise. Are they worth the money, when you can just print a paper wallet and use it instead? That's up to the people buying them. You are just b hurt cause you lost some BTC and it really shows.

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jason-donovan (48) · 7 years ago

Cant wait to watch this, very interesting subject to me. Thanks Trevon

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bhuqwild (30) · 7 years ago (edited)

i totally agree with what you said with this post ive never seen a reason to have hardware wallets

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odigetti (52) · 7 years ago

Bitcoin hardware wallets aren't useful i never use it :D

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