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.