Don’t Save Your Bitcoins in an Unsafe Place Says Will O’Brien, CEO of BitGo

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Don’t Save Your Bitcoins in an Unsafe Place Says Will O’Brien, CEO of BitGo
Don’t Save Your Bitcoins in an Unsafe Place Says Will O’Brien, CEO of BitGo

Don’t Save Your Bitcoins in an Unsafe Place Says Will O’Brien, CEO of BitGo

Will O’Brien, CEO of BitGo says that Bitcoin owners should not place their Bitcoins in a place that can be hacked. Talking to the Forbes magazine, he said that customers should use a secure wallet, bank-grade software that protects Bitcoins from theft and loss. He informed that his company BitGo, is offering the same security.

Elaborating his point he said that prior to 2013, security was not a major priority because the price of the digital currency was still relatively low and a large number of Bitcoin owners did not pay attention to it as they did not realize the kind of losses they could incur if their accounts are hacked and Bitcoin stolen.

However, the recent hacking attacks on several Bitcoin exchanges show that safety of the digital currency has been breached. Now, most people who own Bitcoins know the risks associated with placing it at unsafe wallet services providers. They are feeling a requirement to store their Bitcoins in a place that cannot easily be penetrated by hackers.

Will O’Brien also suggested various methods to store Bitcoin. The methods according to him depend on the purpose the customer has. He says the first method is to use a Bitcoin wallet, which is software that stores the digital credentials for customers’ Bitcoin holdings and can be run on desktop or made available by a hosted wallet provider.

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Second method according to Will O’Brien is to hold Bitcoins with a custodian, exchange, or investment vehicle like an Exchange-Traded Fund that holds the digital currency. However, according to him the best and the safest is store Bitcoins offline or in a vault, popularly called “cold storage.”

His company BitGo brings secure multi-sig wallet which ensures that there is no single point of attack. He informs that the wallet from his company is comprised of three keys, two of which are required to access holdings. One key is held by BitGo, one by the user, and one offline. This is aimed to ensure that wallet is not hacked ever.

Answering to the question whether it is possible for a Bitcoin wallet to be secure while also being easy to use, Will O’Brien said that yes, it is very much possible; however, he did not forget to say that the paradigm has to change from single key to multi-sig. He admits that with multi-sig, an online wallet is secure because multiple keys are never on the same machine.

To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com