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Issue #848: Multsig appreciation day

Issue #848: Multsig appreciation day

Oct 19, 2020
Marty's Ƀent

Issue #848: Multsig appreciation day

Here's something that is very under appreciated about Bitcoin in the eyes of the haters and those who ignore the protocol; the order of magnitude improvement to security and loss prevention provided by the ability to custody your coins in a multisignature wallet. As our friend Adam points out, this particular attribute of the Bitcoin Network helps put bitcoin in a completely different category when it comes to comparing it with other goods that individuals use to store value.

When compared to gold, real estate, stocks, bonds or "fine art" that act as stores of value for many individuals, bitcoin that is held in a multisig wallet is an obvious step-function improvement in many regards. First, let's give you freaks a short rehash on what a multisig wallet is. A multisig wallet enables individuals to store bitcoins in a way that makes it so those bitcoin can only be moved if a predetermined amount of keys are signed first. This allows individuals to geographically disperse keys and backups to reduce the chances of coin loss via key loss or physical attacks. Multisig allows individuals to get as creative as they are comfortable with when securing their wealth. They can keep keys with trusted family members, lawyers with a fiduciary duty to act in your favor, a third-party collaborative custody partner like our gracious sponsor Unchained Capital, or with no one else if they so please.

This unique capability provides bitcoin with an advantage that its competitors cannot tout. As we've seen throughout history, there have been many instances of other goods that are used as stores of value being lost, stolen, or confiscated. Ships traveling with chests of gold have been wrecked, many valuable art pieces have been stolen never to be returned to their rightful owner, and the US government has straight up confiscated gold from vaults or land from people under the justification of eminent domain. All of these actions are made considerably harder when one stores their wealth in a multisig bitcoin wallet.

These benefits are not only afforded to individuals, but businesses as well! Multisig wallets can be used to create unique and secure spending conditions. Allowing companies to set up specific schemes for spending funds that involve many stakeholders within the company. Severely reducing the chances of having company funds being misappropriated. This is all very unique to Bitcoin. A fundamental utility that makes Bitcoin the best store of value the world has ever encountered.

Like Adam said, we should be praising the power of multisig more to our precoiner friends!

Final thought...

Mid-afternoon Fall beach walks, yes please!


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