The Bulgarian Government Has More Bitcoins Than Satoshi Nakamoto
One thing about Bitcoin is that it goes back to Gold. In times where Gold (and similar currencies) were popular Robin Hood, Jesse James, and other street bandits could make fortunes robbing stage coaches in transit. If Bitcoin becomes more mainstream, times like these could come again.
While it seems far fetched, robbing a house built on fiat has the reward potential of about $25,000 tops. It’s not feasible to execute a bank transfer, make a HUGE purchase on a credit card, or ATM withdrawal more than $1,000 or what not. Anything in under 1 to 2 hours is limited to $25,000.
Except with Bitcoin. Hacking an exchange, or robbing a person, has virtually unlimited potential, and millions can be transferred in minutes. It’s the most profitable form of person to person armed robbery bar none, with second place capping out at around $25,000.
So what do you do?
Remove any possibility of a thief acquiring more than $25,000. Will this create some hassle? Sure, but for social leaders and millionaires, it’s likely worth it. For anonymous individuals of low profile, IT IS STILL IMPORTANT, because one needs to have a good story.
During a robbery, you want to do the following:
* Assess the situation (Effectively, are these ‘crack heads’ or professionals? Crack heads yield to authority and can be tricked, professionals kill, torture. With professionals, your family may be threatened, etc, making reprisals unreasonable.)
* Make a token offering (Generally speaking paying up to $10,000 or so to escape a violent situation is a good spend. If the robber is a crack head, they will leave happy. One could argue all your money for your life, but I suggest positioning yourself as to where that is not an option.)
* Remove the ability to access large amounts of funds.
There are two things necessary to achieve this:
1) Attempt to PREVENT withdrawals from exchanges to unknown Bitcoin addresses, or other wallets altogether. And to put new addresses on a one-week lock. 2 Factor Authentication does nothing for you in the event of a robbery. Instead, only allow withdrawals to 1 BTC address, the one in your bank vault.
2) Make a multi-signature wallet on [Bitcoin Core](https://bitcoin.stackexchange.com/questions/24794/how-can-i-use-multi-signature-addresses-with-bitcoin-core) or other, 2 of 4 (or 2 of 6 or similar). Unlike other methods where the passwords are kept with friends or family, instead get FOUR safe deposit boxes in four separate banks. Within each bank keep ONE password and a USB drive for your wallet .dat file. In order to access your ‘vault’ you MUST visit TWO different banks, and access your safe deposit box in each.
For Accounting purposes, you should do the following:
All Incoming Funds -> Vault BTC Address (multisig 2 of 4)
Decoy Stash (small random incoming funds, etc, transfers to Trezor, large and midsized outflows). USB drives or similar. Transfers mostly to keep up activity.
Trezor (or mobile hardware wallet) – For small outgoing purchases, minor trades, etc – mobile, safe to use on public machines.
**tl / dr : So in the end, you should have:**
* Hot Wallet (Trezor) for shopping, trades ($5,000)
* Decoy Stash ($10,000)
* Real Stash, Vault – 2 of 4 multisig – in 4 Bank Lock Boxes, password in the boxes, 1 per Bank (Millions). With all incoming funds set to pay to this public address (or these public addresses if you have multiple businesses, etc).
* Exchanges – Require pre approved BTC withdrawal addresses, new addresses 1 week delay prior to transfer, etc.
Such a setup such as that caps the ability for any armed robber to score more than $15,000 off your person, does not require (significant) coordination with family members (nor jeopardizes them), and forces your person to be transferred between two banking institutions before accessing significant funds (allowing for time to phone the police, and for them to arrive at your future destination, etc).
Even if you do not take these precautions, it is important to have this ‘story’ ready, so that you can discourage a robber from accessing your ‘vault’. Simply tell them it is held in a Safe Deposit Box at 4 banks, and that you need to visit 2 of the 4 banks in order to access the funds. Such a setup takes 90 minutes for you to access funds as needed, but makes any form of extortion next to impossible. It’s a highly believable story, and keeps you safe.
However, keep in mind making a token offering (say $1,000 to $10,000) can make a robber very happy, and keep them from going home empty handed. Just something to keep in mind. So there you have my suggestion as to how to physically protect your Bitcoins, and understanding the realities of physical threats.
I own a certain amount of cryptocurrency and I buy new currencies very rarely.
I am not a trader and therefore I have not registered on real exchanges. ~Anonymous instant exchangers were enough for me.
And a few days ago I went to [ChangeNow.io](https://ChangeNow.io) and sent them 100 BCH. They had to send me 11 bitcoins. (You may think it is crazy…. Maybe yes.)
But time passes and I see a message that my transaction seems suspicious and they demand to provide documents and information about funds origin.
I began to write to them that I was not going to send them anything and demanded that they simply return 100 BCH back. They refused me and continued to demand documents and information about the origin of the funds.
I got tired of all this and took the first picture from google.images (with someone’s passport). Why did I do this? Because I did not take this bucket shop seriously. This is not a company – they have no address, no phone, they do not even have a real company name. I’m sure it’s just a few people working from home. I did not want to say anything about myself, because I did not break anything. But I still explained about the purity of my BCH and it was perfectly visible from the very beginning:
1. There is only one incoming transaction(a few months ago) and one outgoing transaction(to [ChangeNow.io](https://ChangeNow.io)) on the wallet.
2. The origin of funds on this wallet is another my wallet (this wallet was created 5 years ago(before bitcoin hardfork) and he replenished only once(5 years ago))
That is, I have owned this funds for 5 years. This funds are absolutely clean. They agreed with this but then they demanded to make a selfie with my passport and piece of paper (ChangeNow + Date). I began to argue with them, demanding to return BCH back, because they are clean and they themselves know it.
As a result, I had no choice but to make a photo of real passport and make a selfie with a passport and a piece of paper. I sent it to them and said that the previous photo was sent accidentally due to ignorance and misunderstanding of the seriousness of the situation.
Now they say that due to the fact that I deceived them they will now check my photos with regulating authorities.
Do you understand all this madness? They know perfectly well that I am the owner of absolutely clean BCH and they do not return them back. I do not demand them to make an exchange. I just demand to return this BCH back to the legal wallet.
This is not their property. Why do they hold them? I gave them everything and they now tell me that they will check my documents through regulating authorities (indefinitely – no time limits, no guarantees, nothing).
Who are they to hold my property? They are thieves. And I repeat, this is not a bank, and it’s not a real exchange like Binance or CoinBase, which is responsible for his work and controlled by the state. These guys – are nobody and nobody knows who are they and it is absolutely unclear for what purpose they find out the identity of the owner of such a large amount of cryptocurrency.
I will provide proof of this to any moderator (if necessary)