I guess this is where I'm at a loss then. What happens if the USB key is stolen? The account is then in someone else's possession or forever in the wind, and as far as I can tell, with no way to change the key?
Discussion
There is no way to change a key. To the what if's I guess i'll have to be responsible like everyone is suppose to be. But I am it's on a usb & not in a password manager which could get compromised.
Never use a proprietary password manager open source only if you must. To be safer if anyone gets thier hands on my text files they need to get past the encryption which i've used picocrypt to encrypt the files.
I get the sentiment about what if's, but when you invest so much into a system, you like to ensure you're doing your best to maintain a positive security posture, at a minimal cost (time, effort).
Would you be against the idea of 2FA? I can't remember if things like my Ledger waller uses 2FA for extra protection. I really need to dig that out sometime.