Casa enables Exit
How do you store your Bitcoin?
Do you keep it in a storage unit like this?
Walter White’s mountain of drug money in storage unit.
Or maybe hidden like this?
Walter White’s drug money buried underground in the desert. .
You think it's crazy that I am making references to Breaking Bad. You store your Bitcoin on Coinbase.
What will you do if Coinbase is hacked like Mt. Gox?
Maybe you do not believe this is a credible risk. Coinbase has been in business since 2012, Brian Armstrong seems like a nice guy, they have licenses in the majority of U.S. states, and there is even insurance for deposit holders. You enabled Google Authenticator for your account, and maybe you even store your Bitcoin in a Coinbase Vault for extra security.
What will you do if the US government outlaws Bitcoin and seizes deposits from account holders?
Nation-states are Bitcoin’s “final boss”.
You may think this is an extremely unlikely risk, and believe that something like this could never happen in the Land of the Free, but it has happened before. FDR banned private ownership of gold via Executive Order in 1933; Americans were not legally allowed to own gold bullion again until 1974. Ray Dalio, founder of the largest hedge fund in the United States, recognizes this may be a risk for both gold and crypto investors alike in the future:
“I think gold will probably pay well. And digital currencies could pay well. But there’s a reason they outlawed gold that probably could be analogous to the reason that they could outlaw digital currencies. But I’m looking too far ahead.”
Even if you do not buy that this a realistic threat in the United States, many countries around the world are attempting to restrict individuals from owning or trading Bitcoin. China banned cryptocurrency exchanges in September 2017, and India banned regulated financial institutions from engaging in the sale or purchase of Bitcoin in early 2018 [Wikipedia].
Now, let’s assume for a moment you do believe this a credible risk. You think you are already prepared for this vulnerability. You store your Bitcoin private key with a Trezor Hardware wallet outside the gaze of (cough) Sauron (cough) - I mean the US government.
And where do you keep your private key? I bet it's in your sock drawer. The “sock drawer attack” is so well-known in the crypto community that it even has its own meme:
Don’t be this person.
Losing your seed phrase to your private key is also incredibly common. I have a friend who literally kept his seed phrase in his wallet...like in his pocket; he lost it. Don’t be like my friend.
In reality, by storing or hiding your seed phrase in a physical location you are effectively praying that it will not be lost, stolen, destroyed in an accident, or confiscated. The difference between storing your Bitcoin in this manner and putting a mountain of cash in a storage unit or barrel in the desert is negligible. Don’t store your Bitcoin the way Walter White stores his dirty drug money.
To summarize, there are 4 major risks to your Bitcoin holdings.
Loss: You lose or forget your private key seed phrase.
Theft: Your seed phrase is stolen.
Accident: Your seed phrase is destroyed rendering the private key irretrievable.
Confiscation: A governmental entity forcibly seizes your private key.
You need to protect against all of these threats to safely secure your Bitcoin wealth for the future. The fundamental problem for Bitcoin holders is that custodians like Coinbase only protect against the first three threats to some degree, and that hardware wallets are actually less secure across all dimensions than most Bitcoiners recognize.
Casa offers maximum protection against all threats without sacrificing usability.
What is Casa?
Casa is a Bitcoin-only company whose mission is to maximize personal sovereignty and safety. Unlike Coinbase or Cash App, Casa does not hold user funds; it provides users with tools, support, and a community to retain control over their Bitcoin while maximizing their personal safety.
How does Casa protect my Bitcoin?
Casa's flagship product, Casa Keymaster, helps Bitcoin holders safely manage their own private keys. The product comes in multiple "Sovereignty Levels" with varying costs.
The lowest level, the Casa Silver membership, will satisfy the needs of most Bitcoiners for free. The plan uses a 2-of-3 Keyless Multisig scheme to manage your private keys.
The 2-of-3 Keyless Multisig works with a mobile phone and a hardware wallet. That's it. There is no need to write down or remember a seed phrase for your private keys. Bitcoin holders can use the Casa Keymaster app from the App Store or Google Play to sign transactions. Bitcoin transfers can be executed with any 2 of the 3 devices.
If your phone or hardware wallet is lost, stolen, or destroyed you can always ask Casa for recovery assistance through the Keymaster app. Access to your funds will be restored within 48 hours using a Casa recovery key. Casa can never send your Bitcoin because they never have more than 1 device; 2 devices are necessary to execute a Bitcoin transaction. This is a massive improvement in safety and security over both traditional Bitcoin custodians and hardware wallets.
If you are still feeling especially paranoid, or simply want maximum security, you can upgrade to the Platinum or Diamond plans which offer 3-of-5 Keyless Multisig for a premium.
Why Casa Matters
One of the biggest barriers to Bitcoin adoption is fear. With stories about hacks of exchanges like Mt. Gox, or more recently Binance, people have legitimate concern that they will not be able to keep their Bitcoin safe.
Casa is my favorite Bitcoin company because it has given me peace of mind that my Bitcoin is safe from most attacks. The more trust people have in the Bitcoin network, and in their ability to safely store their holdings, the more value that will flow to Bitcoin.
Casa has dramatically reduced the barriers for Sovereign Individuals to Exit the legacy fiat currency system and migrate to the Bitcoin economy.
I am immensely grateful for the work the Casa team has done so far, and excited to see what they will build next for Bitcoiners! I encourage all Bitcoiners to become Casa Silver Members for free, and get started with the Casa Keymaster app today!