What about my point that you can spend/ sell your bitcoin to someone in person by giving them your seedphrase. No bitcoin ever moves on the blockchain, but you are now sitting on a yacht.
Giving someone your seed phrase is inherently insecure since you could have just copied it. To make sure the buyer is the only one in possession of the private key, he MUST move it to a new wallet.
reply
Unless you have a multi-signature setup where the parties' don't know each other and transfer the keys to the new parties.
reply
Oh good point, didn't think of that actually! I'm stumped then.
reply
This is why OpenDimes were invented. It's the closest thing there is to "physical bitcoin". It let's you verify that nobody has the private key and allows you to get the private key if you ever need to move it on-chain
reply