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Board Service Discussion
Re: If you used Brainwallet.org - MUST READ! - Security Breach!
by
willphase
on 06/07/2013, 14:19:25 UTC
If you can't reveal it because you use that password in multiple places then guess what - that's how they got your password in the first place - by stealing it from some other place you used it.

indeed, it would make sense for an attacker to find as many compromised password lists as possible (hint: there was one for mtgox a while back) and use those as seeds as well.

Quote
A brain wallet when done right is perfectly fine.

Anything, done well, is perfectly fine!  The problem is that there are so many bad ways to do a brain wallet, for example:

 - picking a weak passphrase
 - forgetting your passphrase
 - not understanding Change addresses, and losing bitcoins

and it's so trivially easy to compromise a brain wallet with a bad passphrase, that it's probably better, for most users, to use an alternative form of key generation and storage.   I would never recommend a brain wallet to a new user, but I would recommend blockchain.info with OTP and a strong passphrase to a new user.

Will