E339 Why Sharing Your Seed Phrase is a Bad Bitcoin Inheritance Plan

In this episode, we will talk about self-custodied bitcoiners (not those who have their coin on an exchange or with a third party). Some bitcoiners share their seed phrase with their spouse or adult children. Or perhaps they share their cloned wallet with those trusted individuals.

 

It’s temptingly easy, essentially frictionless to share your seed phrase. But, as we’ll discuss, it can be insecure for reasons you may not think of. Sharing your seed phrase can be dangerously inflexible and not future-proof.

Relationships change

One reason that this plan is not flexible is because relationships change. Married couples can become divorced or widowed. You may have a falling-out with a loved one. Your relationship with your child may be good now, but the relationship could become strained or even estranged. If this happens, you may not want them knowing your seed phrase. That’s like giving the keys to the kingdom to someone you don’t trust anymore.

They’ll won’t keep it secure

Say you give your seed phrase to your spouse or adult son. No matter how wonderful they are, your loved one may not realize how i