4 Reasons Why You Shouldn’t Talk About Your Bitcoin
In a little more than a decade, Bitcoin has grown from an obscure protocol to a trillion-dollar market capitalization and beyond, creating substantial wealth for those who HODLed along the way.
Today, there is a thriving community of Bitcoiners who believe in not just Bitcoin as a store of value, but also the role of Bitcoin in securing one’s digital sovereignty. And they love talking about it with loved ones, at conferences, and online. Some Bitcoiners even make a name for themselves as influencers.
If Bitcoin is a large portion of your net worth, however, attracting attention may not be in your best interest. In fact, there are several risks and situations you should prepare for. At Casa, we specialize in helping clients secure their bitcoin and protect their digital sovereignty. Here are some reasons why you shouldn’t necessarily tell the world about your bitcoin.
🎯 Wealth Makes You a Target
To the victor go the spoils. Since the dawn of time, people have used force to take what doesn’t belong to them. When people hold significant wealth, they have to stay one step ahead of the competition to keep that wealth secure and avoid attacks. It’s just the world we live in.
Today, high-net-worth individuals rely on a variety of tools to protect both themselves, their families, and their funds, including bodyguards, armored cars, and bank vaults. The price of wealth is a lifetime of vigilance.
Bitcoin is the latest innovation in wealth security. Unlike gold or fiat currency, your bitcoin isn’t bound by physical or geopolitical boundaries. Your bitcoin is stored online on the blockchain. As long as you hold your own private key, your wealth is secure. This security advantage is what makes Bitcoin worth holding in the first place.
But you have an advantage as well: your own reputation. Thieves can’t steal what they don’t know you have. If you don’t discuss your bitcoin with others and avoid flaunting your wealth, you’ve decreased your odds of being noticed and attacked. While not a magic bullet, keeping a low profile can add a supremely helpful layer to your overall security model.
🤑 Everyone’s Got Something to Sell
Setting the rules of engagement is an important part of digital sovereignty. When you identify as wealthy, you become everyone’s target customer. High-net-worth individuals get a lot of pitches from investment opportunities to philanthropic ones.
Pitches have a time and place, but strangers won’t always know when a good time is. You may not necessarily want to find yourself in an elevator pitch at your daughter’s wedding. Being constantly pitched grows old fast.
Even less predictable is how friends and loved ones will respond to learning about your wealth. Money changes people and newfound wealth has motivated many friends and relatives to come out of the woodwork. These situations are undoubtedly delicate, and you might feel obligated to help. Just be aware of this potential outcome.
Navigating this dynamic is why many lottery winners choose to remain anonymous. Consider adopting a similar mentality if you believe your bitcoin could be life-changing one day, so you can more aptly control your destiny, which is the point of wealth.
🏠 Look Out for Your Loved Ones
No one is an island. Most people are used to taking steps to protect themselves, but wealthy individuals should give some thought to children, friends, and relatives. Even if you’re out of reach, malicious actors can leverage those you care about to get to you. This attack vector also applies to individuals with substantial wealth outside of Bitcoin.
Protecting your inner circle is perhaps the most frustrating part of security threat modeling. Kidnapping, extortion, and ransom demands are some of the more extreme threats, though general harassment can happen as well. For instance, a scammer can spoof your social media account and send a fake plea for money to your relatives.
These threats are hard to control, so give some thought to these and other unintended consequences and be on high alert if you or your loved ones travel to unsafe areas.
📃 Avoid Legal Entanglements
Preparing for security threats is just one part of smart wealth management. It’s also important to avoid stepping into traps. The courtroom is one of them.
Wealthy individuals are often the subject of frivolous lawsuits because plaintiffs can collect a judgment if they win. Judgments can’t always be collected from less affluent defendants.
Legal risks are another good reason why it’s a good practice to fly under the radar and avoid putting yourself in compromising situations. For instance, a plaintiff might be less willing to let a minor fender bender go if they’re rear-ended by a Bitcoin billionaire in an exotic sports car. That isn’t to say don’t treat yourself every now and then. Be deliberate in who you share that luxury with.
👍 You Don’t Have to Dox Yourself
With Casa, you can take self-custody of your bitcoin and protect your privacy. Our multisig security is focused on keeping your private keys safe, and you can even use our service with a pseudonym. Together, this service is the best way to hold your own keys and stay low-key, too.
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Our premium service is designed especially for high-net-worth clients storing significant Bitcoin holdings. Our Platinum package matches best-in-class security with white-glove service for total peace of mind, and our Diamond tier allows you to arrange an inheritance plan for the future. Schedule a call to learn more.