Securing Bitcoin: Self-Custody and the Future of Wealth ft. Jameson Lopp, Co-Founder and CSO at Casa
In this episode of The VALR Podcast, host Farzam Ehsani, VALR’s Co-Founder and CEO, engages Jameson Lopp, Co-Founder and Chief Security Officer at Casa, in a compelling discussion on Bitcoin security and privacy. A Bitcoin pioneer and self-proclaimed cypherpunk, Lopp shares insights from over a decade in the space, emphasising self-custody as a cornerstone of financial sovereignty.
Lopp recounts a 2017 swatting incident that underscored the dangers of being a public figure in crypto, sparking his multi-year journey to enhance personal privacy and track down the perpetrator. He advocates for self-custody to eliminate reliance on third parties, which he views as opaque risks, and stresses multi-signature (multi-sig) setups with geographically distributed keys to mitigate single points of failure. Casa’s model, holding one key in a multi-sig setup, ensures clients retain control even if the company fails, addressing risks like wrench attacks—physical robberies targeting crypto holders—which Lopp estimates cost over $100 million annually.
For beginners, Lopp recommends hardware wallets ($50–$100) to protect against most online threats, while urging advanced users to adopt multi-sig for significant holdings. He warns against overcomplicating setups, like splitting seed phrases, which can create vulnerabilities. Discussing Bitcoin’s broader risks, Lopp highlights quantum computing as a potential threat to private keys and protocol ossification, where Bitcoin’s growing network size hinders upgrades, risking stagnation against new threats. He draws parallels to email’s centralization, cautioning that Bitcoin’s price growth may mask underlying vulnerabilities.
Lopp also critiques the “number go up” narrative, arguing that centralized custody via ETFs increases systemic risks and undermines Bitcoin’s security model. Encouraging incremental security improvements, he urges listeners to educate themselves to safeguard wealth and strengthen Bitcoin’s resilience, offering practical advice and valuable insights.
Risk Disclosure
Trading or investing in crypto assets is risky and may result in the loss of capital as the value may fluctuate.
VALR (Pty) Ltd is a licensed financial services provider (FSP #53308).
Disclaimer: Views expressed in this article are the personal views of the author and should not form the basis for making investment decisions, nor be construed as a recommendation or advice to engage in investment transactions.
