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Bitcoin isn't hard, it's just unfamiliar.

One of the hardest concepts for folks to wrap their minds around is that the Bitcoin they own isn't actually IN their wallet. The wallet is just software to allow you to interact with Bitcoin nodes, where your Bitcoin (along with everyone else's) is actually stored.

Even more difficult for folks is that you don't transfer your Bitcoin INTO your hardware wallet to keep it safe. It's still living on the nodes. The hardware wallet is just a glorified password manager designed to store a very strong password very securely, because you can only maintain exclusive right to transact with your Bitcoin if you can keep that password a secret.

Now, that might seem convoluted, and that fiat is way more simple. But then, most folks also have no idea just how convoluted fiat really is, and how little they actually understand about how it works under the hood.

Akamaister 8mo ago

I still fall in the trap of thinking the bitcoin I have is somehow “in my wallet” I know it’s not it actually. It’s on every node that has a copy of the blockchain running and that description is probably not completely accurate either.

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Discussion

Dikaios1517 8mo ago

That's pretty accurate. The only way for your Bitcoin to be gone would be if every node were to be destroyed. Very resilient.

By contrast, your ability to access your Bitcoin can be lost if 1. you lose the ability to communicate with any Bitcoin nodes, or 2. you lose your private key, or someone else obtains your private key. Significantly less resilient, and dependent on how you manage 1 and 2.

Akamaister 8mo ago

Yes very true. I started using hardware wallets (ledger) started last dec but there are still better ways I can safeguard the bitcoin I have

Dikaios1517 8mo ago

Keep leveling up one step at a time.

Akamaister 8mo ago

Thanks !!