Bitkey Wallet Tutorial: Setup, Security and FAQ

I'm going to walk all three of you through the different options for holding Bitcoin and then you can decide what's best. You know, assuming this is best for you. So, the first off is Bit Key is the mo is the best and most secure way because it lets you control it. Nobody can take it from you. The government can't take it from you. A hacker, a scammer, like it's just best. Your options then are you can either keep it on River or Coinbase or you can get a Bitcoin ETF if you have a brokerage account like if you have Schwab or Fidelity or somewhere that does stocks and bonds buying. Sometimes they can buy a Bitcoin ETF on your behalf, an exchange traded fund which is basically like a share of a Bitcoin that trades on the stock market. So some people are like look I don't want to mess with it. And it's like if you don't want to mess with it, your options are Coinbase or River or a Bitcoin ETF. But again, that's only if somebody who's like, "Oh yeah, I'm buying and selling Amazon and Tesla all day long." It's like, "Okay, well then great. You can you can buy Bitcoin on the same platform." If you're not doing that, then it's easier >> with the Bit Key. It backs up to your uh Apple Cloud account or your Google Cloud account. Bit key has a copy if you're worried about like losing the keys, losing your bit. So, you can only lose your Bitcoin if you lose the keys to your Bitcoin, but it has an encrypted one in the cloud, which you're never going to lose because you're literally Apple or you would have to delete your iCloud account permanently. You've got a key there. So, if you lose everything else, you lose your phone, you lose your all that, then your trusted recovery contacts are going to let you get access to that key. But, it does require their help to make sure it's not a scammer or hacker. So, right, some somebody who's set up as a recovery contact would have to help you do that, which is fine. Um, then you've got uh separate from that key on the cloud, you've got the physical device. So, as long as you have the physical device, you can still get access to your Bitcoin even if Apple blew up the Apple iCloud and you lost access or you got divorced or like all of that could happen. You're like, I don't even matter because I have this little thing. And it's like, well, this little thing will put it all back. You can lose your phone and your bit key. And as long as you have your Apple iCloud account, your trusted contacts will help you. Your recovery contacts can help you get get your Bitcoin back. >> Okay. >> Um, now you're not going to lose both of these at the same time, but even if you did, >> you still got a a way to keep back up. If you lost your iCloud account, but still had your phone, you're still good because the key is on your phone. If you lost your phone, but you still have this. So, you basically think about it as, it's more complicated than this, but think about it as I need one key to get to my Bitcoin. And there's one in my iCloud account. There's one on my Bit Key that only I can get to or someone who has the P who physically holds it with a fingerprint that'll unlock it. And there's one on my phone that only I can get access to because it's protected by Face ID. There's essentially three pieces of insurance that guarantee you're not going to lose your Bitcoin. I'll walk you through what would have to happen for you to actually lose it, which is why I'm not worried about it. And again, people are like, "Oh, but I could lose it." I'm like, "Yeah, but what I'm about to walk through is basically impossible." which is you drop your phone in the reservoir and it's gone, >> right? >> Your bit key is locked up because the p, you know, your fingerprint won't work anymore. You delete your Apple iCloud account and you wait 30 days and then Apple asks you if they you want to completely wipe your iCloud account for the rest of eternity. And you're like, I'm done with Apple. I know I hate Apple and I and you wipe it and then you call me and you're like and I'm like, I don't recognize the number. You're like, I'm on a new phone because I lost mine in the reservoir. My house burned down. It had my Bit Key in it. And by the way, I lost faith in Apple, so I deleted my iCloud account and all of my pictures and all my videos. To delete your iCloud account, you're deleting everything that you've ever accumulated on your phone. Well, nobody nobody goes to Apple and they're like, I want to wipe out all my pictures, all my grand kids. Like, I want to wipe it all out. I want to my all my passwords, all my everything. Like, nobody wipes out their iCloud account. I have never encountered anybody who has wiped an entire Google account or an entire iCloud account off the planet because nobody does that because it has all their stuff. As long as that exists, you have an insurance policy. As long as your phone exists, you have an insurance policy as long as your bit key. So again, you got three and it's like you're calling me and it's like one of my three insurance policies doesn't work. And I'm like, it doesn't matter because the other two do work. So I'm just not worried about it. The beauty of Bitcoin is any Bitcoin can move between any service. You can send it all from Coinbase to river, river to Coinbase, Bitkey to River, Bitkey to Coinbase. You could send it in a big triangle for the rest of your life all day long. And so, uh, and that is a benefit of Bitcoin as opposed to like if if somebody's like, I have money in Cash App and I want to send it to, uh, you know, to Vinmo. It's like, but you can't send it directly between Cash App and Venmo. It's both US dollars, but they don't talk the same language. >> But that's US dollars. That's because they each have their own proprietary things. Bitcoin doesn't work that way. Every Bitcoin service can send and receive bitcoins from any other Bitcoin service and you're all good. >> They do not have a debit card. Not yet. Um, they are implementing bill pay where you can just set it up to like pay bills out of it. At some point they may have a debit card or a credit card. People have mixed feelings about literally everything I buy is Coinbase debit card. Like this card goes with me. I buy everything with it and it spins Bitcoin. Yeah. >> Um other people are like, "Yeah, but I can get better rewards off my Chase Sapphire American Express and then I can buy Bitcoin with the rewards." And I'm like, >> "Yeah, >> yeah." And then you can and you're settling up once a month with your So I'm like whatever. There's a bunch of ways to do it. So all those services are interchangeable. Uh, generally I recommend even though you can round robin all day long, I recommend people don't for tax reasons of like at some point in the future, it's just easier if you're spending Bitcoin to not have had it bounce through eight different places. And then when you're trying to figure out like, okay, what kind of gain did you get on the Bitcoin, it's like, well, I got some of the gain here and some of the it is like it's all over the place. So, for simplicity, I generally recommend Bitcoin technologically can bounce through anything. But if somebody's like, I already have it here, I already have it there. I'm like, "Look, where have you got it? Let it chill. It's fine." >> This device is made by Block, which makes all the Square payment terminals, which makes the Cash App app, and is run by Jack Dorsey, who's the founder of Twitter before he sold it to Elon Musk. He's a billionaire, Deca Billionaire. Anyway, they are a Fortune 500 company. the inheritance feature. Think about it as an insurance policy on top of all of the other insurance policies, which is you got a key in in the in iCloud, you have a key on your phone, you have a key in Bit Key. Any of the three let you get your Bitcoin. Some of them let you get your Bitcoin with no waiting period. Like, if you unlock your Bit Key with a fingerprint, there's no waiting period to restore the key to your phone because they're like, if you're physically holding the Bit Key and you have your fingerprint matching, like you're not a hacker. But if it's just your phone, you're like, "I bought a new phone on my iCloud account." They're like, >> "You got to wait seven days because how do we know a hacker's not adding a phone to your iCloud account?" Like, that happens. The way the inheritance feature works >> is you can set up somebody to be the beneficiary of all of the assets on your Bit Key. >> Okay. >> Just all the assets. You can only set up one person to do that because there's no there's no way to set up like multiple people get multiple pieces. It's just simple. Yeah. >> Okay. the person you set up to inherit, there's no way for you to initiate giving them the inheritance because presumably you're not here. Your trusted loved one, whoever it is, can initiate an inheritance claim at any time. But there is a six-month waiting period. And the reason it's a six-month waiting period is they got to be super sure you're not just on vacation like you're gone gone, you know, you're not around. So during that six months, you're getting text messages. The person that that died is getting three kinds of notifications saying, "Are you really gone?" Right? Your loved one has initiated a claim. They want to be super sure. And just like the 7-day countdown right now that at any time in that seven days, it's going to be saying, "Are you sure?" Yeah. Are you sure? Are you sure? Is it really you? Is it really you? And you just ignore it, ignore, ignore it until the seven days runs out. >> If something happened to you, the same would be true except it's six months. So when you set up, so let's assume you when you have you and have inheritance set up. The way inheritance works is the reason I think about it as an additional insurance policy on top of all of the other insurance policies is because let's assume you do call me out of the blue and you're like the whole scenario I laid out. I lost my phone in the reservoir. My house burned down on the same day. I deleted my iCloud account. Like all at the same time, I would be like, well actually none of that even matters. You're going to have to wait six months. But whoever is set up as your beneficiary can go through the same process as if you're gone. Now the truth is you're not gone. You're just your iCloud account's gone, your phone's gone, and your bit's gone. But the process to reclaim the Bitcoin is the same, which is they inher they initiate an inheritance claim. You're going to be getting push notifications to a phone that no longer exists. You're going to be getting emails. You're going to be getting, you know, text messages to your new phone or whatever. And you just ignore them for six months. And then at the end of the six months, you have to trust that the person who gets your Bitcoin will get it back to you. But that's the whole point. I mean, the whole point is they inherit it and then they get it. But again, that's why it's like an extra insurance policy because in in the case at which you lose all three of your other insurance policies, >> you got a big old fourth one, which is I can just ignore all three insurance policies and my loved one can initiate a an inheritance claim. And again, it's six months. Unlike a recovery contact which does not require a bit key or the other three sort of insurance policies uh do not require a bit key. Your phone is your phone. Your bit key is its bit gate. But the beneficiary does have to have a bit key. The reason for that is because potentially a large amount of money is about to transfer from one vault to another and they want to make sure there actually is a vault on the other side of that. So if they if inheritance if bit key allowed inheritance without a bit key on the other side you could end up in a situation where you're like I need somebody to initiate an inheritance claim because all my I you lost all my stuff and the person's like uh oh I I changed phones I don't have bit key anymore and they're like >> so by by setting up bit on their side of it they have all the same insurance policies as you do. They can't lose the ability to initiate an inheritance claim unless they lose their phone and their bit key and their iCloud account all at the same time, >> right? >> There's no reason not to set up inheritance if you know somebody who has a bit key. >> The beneficiary is more foolproof than that approach. So if your daughter can unlock your phone, does she know your passcode to your phone? So, if she can unlock your phone and her fingerprint matches, you're like 99 point something% good. There is a scenario where you go down in a plane crash. Your phone goes with you. >> Now, she's got to get a new phone, link it to your Apple account, which she should be able to do because she has your passcode >> and she can approve it from a Mac laptop you have or something like that. So, if they have a bit key, the inheritance works way better. I would set up the inheritance, but I would just leave the extra fingerprint because it avoids situations like this where you're like, it doesn't work. Now, in this case, all the fingerprints stopped working at the same time. So, I'm like, >> yeah, >> it happens, right? I mean, it's tech. Um, but again, it's like one of three insurance policies and then once you have inheritance set up, it's like an umbrella policy. You're like, "And to cover all the insane things we can't think of, here's another policy, which is one more.