One Way Ratchet

10 Things You Need To Know About Bitcoin #6: Not Your Keys Not Your Bitcoin | 019

Introducing self custody and why its important

Dan and Trent get into security and why it is so important to learn about Bitcoin self custody.

Episode #6: Not Your Keys Not Your Bitcoin

Peer to peer digital cash system with no trusted third party
Bitcoin is like a giant spreadsheet in the sky. The private key is the password that lets the owner move their Bitcoin
The Bitcoin network is permissionless. If you hold your own private keys, you can transact any amount of your Bitcoin with anyone in the world any time and nobody can stop you
If you don’t hold your own private key and keep your Bitcoin on an exchange, you don’t actually own Bitcoin. You have an IOU and hope they give you the Bitcoin one day
Bitcoin transactions are nearly instant, final settlement and very low cost
Biggest ratchet moment of all: when you remove Bitcoin from an exchange and send to your own custody. You are actually using Bitcoin
Nature of counterparty risk
FTX blowup is the perfect example. People gave them billions of dollars to buy Bitcoin and at the end they had no Bitcoin
With Bitcoin in your self custody you can safely secure your Bitcoin for generations with no counter party risk and no-one can take it from you
Take the time to learn self custody. Anyone can. Its easy. Use best practices
Today’s song: Safe From Harm by Massive Attack