Post
Topic
Board Bitcoin Discussion
Re: Theft and Seizure Proof Cold Storage
by
DannyHamilton
on 15/04/2014, 14:00:06 UTC
>A computer is a no go.
Unless encrypted with TrueCrypt

And the password can be forgotten.

>A paper wallet can be seized/burned/lost.
Make several copies

Multiple copies doesn't protect the bitcoins from being seized, but it does reduce the probability that all copies will be lost or destroyed.

Write your seeds/keys on a paper. Make three copies of it. Cut each paper into three pieces. Now you have nine notes, call them A1, A2, A3 for first paper, B1, B2, B3, for second paper, and C1, C2, C3.
Hide each piece at a separate location.
If you are be able to collect (A1 or A2 or A3) and (B1 or B2 or B3) and (C1 or C2 or C3) your coins are saved.

Or just create a multi-sig transaction that requires 3 of 9 signatures.  Then write each of 9 private keys on a separate piece of paper and hide each piece in a separate location.  that way it won't matter which 3 pieces you can recover, as long as you can recover 3 pieces.  Of course this isn't certain protection, it just increases the probability that you'll be able to recover enough pieces, and makes it a bit more difficult for someone else to recover enough pieces.  Of course, you still have to be able to actually remember where at least 3 hiding spots that have avoided destruction and discovery.