Quote from: CircusPeanut on August 19, 2014, 05:58:15 PM

Quote from: Automatic on August 19, 2014, 08:24:00 AM

Quote from: CircusPeanut on August 18, 2014, 03:15:15 PM

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4. Distribute your 6 pages to secure places and trusted people.

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My issue with the paper wallets is... where do I store them? Seriously, where?

Storing them in a bank is expensive where I live, giving them to friends means friends can get together to steal your money, keeping them yourself is pointless, etc...

Fragmented backups are perfect for people with limited options for physical security.

The nice thing about fragmented backups as well as multi-sig wallets in general, is that you have the flexibility to manage those parameters yourself without many resources. You don't need to store some at the bank. Even if all you did was scatter them in your house, you'd still be protected against someone breaking in for other reasons and randomly finding a paper backup. With regular paper backups that would be game over. With fragmented backups, someone has to specifically target you (i.e. break into your house with the sole intent to find your Bitcoins). Even then, they may not find them.

But of course, we recommend not keeping all of them in the same place -- people also like to distribute backup fragments in case their house burns down, etc. Keep one with a family member, bury one in your backyard, etc. If you make a 6-of-6 backup, having only 5 pieces is as good as having zero -- they need that 6th piece to get your wallet, and without it they might as well try brute-forcing your wallet from nothing.

It's up to you to decide the parameters you are comfortable with, since it's your money. At least Armory gives you that flexibility (are there any other wallets/services out there that do fragmented backups?).