As gold proponent Peter Schiff loses his BTC because he didn’t remember to keep his seed phrase, CT tore into him for forgetting his password, thanking him for getting some BTC out of circulation, and reminding him that freedom does not come free.
So, you must have now heard all about gold proponent and Bitcoin detractor Peter Schiff losing all his Bitcoin that he didn’t buy himself but received from the crypto community in their attempt to get him started and turn him into a BTC enthusiast by having him understand the technology. What happened as Schiff explains on Twitter,
“My wallet got corrupted somehow and my password is no longer valid. So now not only is my Bitcoin intrinsically worthless; it has no market value either. I knew owning Bitcoin was a bad idea, I just never realized it was this bad!”
Blockchain.com did reach out to him to ensure that his “funds are secure.”
And if like Pompliano you think Schiff forgot his password, that’s not correct because apparently “zero chance” as Schiff clarified,
“I used a very simply numeric password that I have used many times in the past.”
Well, now you would think what about the seed phrase, right? Well, Schiff never saved it.
What actually happened here is explained by ShapeShift CEO, Erik Voorhees,
Here's what happened: after debate in 2018, we went to dinner. Peter had never used bitcoin before (!) I helped him set up wallet on his phone (Edge or BRD?), told him to secure it if he ever held significant value on it, gave him $50. He forgot pw, and never recorded phrase. 😑 https://t.co/kcQkAyU9Rv
— Erik Voorhees (@ErikVoorhees) January 19, 2020
Bitcoin can’t fix Stupidity
The community tore into Schiff for his inability to manage his password.
Sir, your caps lock is on.https://t.co/sIMQsrfvFg
— WhalePanda (@WhalePanda) January 19, 2020
Try: OkB00m3r6969L0LaF https://t.co/Pplw5OXKmx
— The Wolf Of All Streets (@scottmelker) January 19, 2020
As Bloomberg Opinion writer, Noah Smith retorts, it won’t work for other assets as he ribs him with,
“I just lost all the gold I've ever owned. I was just walking down the road with my orc buddies, and a party of five motley adventurers beat me up and took our coin purse.”
But Schiff reiterates he didn’t lose the password, “It's just that the correct password no longer unlocks my wallet.”
So much fake news about how I forgot my wallet password. Can't #Bitcoin pumpers be honest about anything? I was very clear that I didn't forget my password. My wallet no longer recognizes my correct password. Plus what's up with over 3K people liking that I lost my Bitcoin?
— Peter Schiff (@PeterSchiff) January 20, 2020
After all, Freedom doesn’t come free
Well, this happens when you haven’t put your own hard-earned money into the highly volatile crypto asset. Because as Voorhees says, “Financial sovereignty: it's not for everyone.”
Even Tron CEO Justin Sun understands the responsibility that having freedom brings,
“Always remember your private key! Crypto is like freedom. Freedom is never free. With freedom comes responsibility. The responsibility to remember private key!”
But, We Appreciate the Sacrifice
This naturally got the Crypto Twitter started with Bitcoiner and coder, Udi Wertheimer stating,
“BREAKING: Aging Boomer Makes Ultimate Sacrifice, Bitcoin Supply Irreversibly Decreases.”
Peter didn't buy any of the Bitcoin in his wallet. It was gifted to him by the community a few months back. As such, the only fitting end to this story was that it would be lost forever because of boomer things to deflate the current supply to enrich the rest of us hodlers.
— Jacob Canfield (@JacobCanfield) January 20, 2020
Trader Scott Melker said,
“Thank you for taking a bit more Bitcoin out of circulation. We appreciate your sacrifice. But I have questions. Why does he own any Bitcoin if he hates it so much? Does he understand what a wallet is? Does he understand what private keys are? Do you even blockchain?”
Last tweet on this. But gotta say, thanks for the “burn”, buddy! https://t.co/JQI54Zom3W
— CZ Binance (@cz_binance) January 19, 2020
But the Technology is to Blame too
Amidst all this, it can't be denied that we are still in the early days of development. On-chain analyst Willy Woo notes,
“Wallets do make mistakes and get corrupted as they get upgraded. I remember having to recreate from seed on my old BreadWallet when they upgraded to BRD. (I hadn't used it in a year) We are still in crypto's bleeding-edge tech days IMO.”
Preston Byrne, an attorney in the U.S.-based Byrne & Storm also fees the same as “Bitcoin’s UX sucks if you don’t know how to use a computer.”
This is, in fact, the truth. But cult members don’t care.
“you lost your password and now you’re broke, bitcoin adoption incoming!” https://t.co/dN5uOKcIrL
— CryptoGainz (@CryptoGainz1) January 19, 2020
Ethereum co-founder Vitalik Buterin also shares his disappointment on CT going with “crypto is what it is, it's your job to be super-careful and write down backup seeds in three places.” He says the crypto industry needs to “create better wallet tech to make security easier.”
As for Schiff, this wasn’t a tragedy for him, even though he wanted to HODL and “go down with the ship.” It’s just that his “ship sank before Bitcoin.”