Is Your Bitcoin Safe? Community Reacts to Self-Custody Risk
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Is Your Bitcoin Safe? Community Reacts to Self-Custody Risk

written by John Murphy | February 24, 2023

Recently, a Bitcoin core developer has highlighted some security lacks in reply to Is Your Bitcoin Safe. Since then, the community has been more concerned about their wallet’s security. The crypto world is baffled about how “regular people” might successfully secure their own Bitcoin.

As mentioned earlier, “Luke Dashjr” claimed in a recent post that some hackers had gained access to his Pretty Good Privacy (PGP) key. It is one of the most critical and confidential things which comes from an encryption application that generates cryptographic authentication.

Is Your Bitcoin Safe: Self-Custody Risk

Concerns over how a developer of the Bitcoin core, who is well known for security purposes, may be compromised were expressed by cryptocurrency community members. So, according to the community, regular people’s wallets are in danger and can be hacked easily at any time.

Recently a Twitter user has also expressed dismay in a message, saying that “there’s little hope for most” and that few would be able to assist the developer.

Mass adoption was also highlighted by a Twitter user recently in a tweet. They consider mainstream adoption a “pipe dream” if a well-known bitcoin creator’s wallet is not secure.

Namcios, a famous Bitcoin analyst, thinks these opinions do not accurately reflect the reality of the situation. According to some expert emphasized, Dashjr might have been mistaken. Although he thoroughly understands Bitcoin, there is still a margin of human error.

What Has Binance CEO Responded to?

Also, Binance CEO Changpeng Zhao responded to Dashjr’s Twitter thread in which the developer asked if there was anything the cryptocurrency exchange would do for assistance. Zhao, CEO of Binance, has guaranteed that their security team will be even more vigilant and will surely keep an eye on the assets and block any Bitcoin deposits to their cryptocurrency exchange.

The CEO of Binance advised against self-custody on November 14 since mistakes may be “extremely costly.” Self-custody, according to Zhao, is an essential human right.

The community should take care to implement it properly. Along with Zhao, Michael Saylor, the chairman of MicroStrategy, also discussed the advantages of self-custody in the wake of the FTX collapse. Saylor claimed that caretakers “accumulate too much power in a system without self-custody.”