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A comment on Coinbase warns that bankruptcy could wipe out user funds. Parent comment

Re:Coinbase warns that bankruptcy could wipe out user funds by sschueller on Wednesday May 11, 2022 @04:29PM (#31345323)
Most hardware wallets use the same standard to generate your keys (BIP39, BIP32 and BIP44 I think) from a long recovery phrase of words. So you could for example restore your wallet in a wallet software if your hw wallets dies. As long as you have all the words and the correct order you should be able to restore your funds somewhere else.
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Re:Coinbase warns that bankruptcy could wipe out user funds by azinman2 on Wednesday May 11, 2022 @05:47PM (#31346288)
But at that point I effectively don’t need the hardware as I’ve stored these words elsewhere.
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Re:Coinbase warns that bankruptcy could wipe out user funds by tekknik on Thursday May 12, 2022 @10:18AM (#31354589)
The problem with your current approach, and software wallets in general (as well as these recoverable wallets) is the private key is retrievable. Which sorta negates the protections given by having a single owner of the cert (the hardware wallet).
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Re:Coinbase warns that bankruptcy could wipe out user funds by azinman2 on Thursday May 12, 2022 @01:32PM (#31357274)
I’m not terribly worried about that scenario. I haven’t had my 1password breached — lots of bad things could happen if I did. I don’t own enough crypto to make this my biggest concern. I’d rather have a robust system that will hold it without failure, or in Coinbase’s case, bankruptcy.
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Re:Coinbase warns that bankruptcy could wipe out user funds by tekknik on Friday May 13, 2022 @01:12AM (#31363584)
Then you have some false sense of security and clearly aren’t holding any real value in this wallet.
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Re:Coinbase warns that bankruptcy could wipe out user funds by azinman2 on Friday May 13, 2022 @02:56AM (#31364236)
Real value is all relative.

It's all about ones personal trade offs. I have more faith in cryptography in a software world with backups than I do in a random hardware device with a maker that's unlikely to last the test of time.

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Re:Coinbase warns that bankruptcy could wipe out user funds by tekknik on Friday May 13, 2022 @11:09AM (#31368648)
Oh I’m right there with you on hardware wallets, I’m just pointing out that your software based wallets are very vulnerable. The only safe key is one that nobody can retrieve.
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