0 sats \ 3 replies \ @ae52f929c 8 Jul 2023 \ on: Exploring Multi-Sig Setups: Seeking Thoughts on Casa and Alternatives bitcoin
Specifically why do you need multi-sig? People latch on to this as a solution all the time and it is very specific to individual needs. Most of the time you can simplify your situation by using a single seed phrase + password phrase.
I would say single-sig + passphrase is a middle ground between single-sig (no passphrase) and multi-sig. Here is the way I see it:
Pros of single-sig + passphrase
- Simpler than multi-sig.
Pros of multi-sig
- If you do a 2/3 multi-sig you can loose 1 private key and you can still get to your Bitcoin.
- You can utilize one of the multi-sig custodians (Unchained, Nunchuck, Casa, etc).
- You can use a friend/family as one of the sigs in a 2/3 multi-sig.
At the end of the day everyone has to decide what works for them. I could see a situation where you start with single-sig with no passphrase, than as you stack more sats you go to single-sig with a passphrase, then more multi-sig when you stack even more stats.
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Passphrases are simpler but also highly dangerous. If you use passphrases, make sure that you understand their weaknesses first: https://hugonguyen.medium.com/passphrases-are-not-the-solution-for-bitcoin-custody-4f967a339b1b
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Some more pros for SS+P:
The wallet balance isn't so easily revealed, as one doesn't need to backup any xPubs.
The backup process itself is much easier (perhaps this is what you mean by "simpler"). For SS+P, everything can be human readable and etched on steel. For multisig you again have the issue of backing up all xPubs, which are either digital or on paper. There should be multiple copies in case of bitrot.
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