A prominent German Bitcoin developer has admitted that concerns over self-custody security prevented him from accumulating more BTC despite the fact that he actually believed in the cryptocurrency’s long-term potential.
This rather unusual confession came after the biggest hardware wallet security incidents in Bitcoin’s history.
René Pickhardt, a famed Bitcoin researcher and Lightning Network developer, said in a post on X that he had been “too ashamed” to admit the real reason he never bought much Bitcoin.
“Despite its potential upside, I never bought much Bitcoin because security & key management always freaked me out,” Pickhardt wrote.
According to the German blockchain developer, even perfectly generated private keys are not immune to storage risks, software flaws, or even future tech advances.
As reported by U.Today, attackers exploited a flaw affecting multiple generations of the popular Coldcard hardware wallet. According to researchers, the vulnerability allowed seed phrases generated under certain conditions to become predictable. The attack has already resulted in the theft of more than 1,755 BTC (more than $100 million). One victim allegedly lost approximately $1.6 million despite storing his wallet in a safe deposit box.
Security researchers at Block traced the vulnerability to the implementation of the random-number generator used to create wallet seed phrases.
The software generated entropy from predictable values, including device serial numbers. This made it possible for the attackers to regenerate wallet keys and drain funds.
Another self-custody debate
Pickhardt’s remarks resonated with some users who acknowledged that securely managing Bitcoin remains intimidating.
Blockstream CEO Adam Back responded to Pickhardt by saying that “with great bearer cash power comes great responsibility to not lose your keys.”
Some have also noted that his concerns about cryptography were misplaced.
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