QUESTION: Where actually IS my bitcoin?

00:02 be wondering where actually is my
00:05 Bitcoin. The answer is actually
00:06 different than what you might think. So,
00:08 if you have Bitcoin on Coinbase or River
00:11 or a service like that or in Cash App or
00:15 in Robin Hood or in uh PayPal, you
00:18 probably think that’s where your Bitcoin
00:20 is. That’s actually not where your
00:21 Bitcoin is. All Bitcoin all the time is
00:25 on the Bitcoin blockchain which is
00:28 replicated across more than 100,000
00:30 Bitcoin nodes over the world including
00:34 running on satellites. So where actually
00:36 is your Bitcoin? No matter where you
00:39 think your Bitcoin is, all Bitcoin all
00:42 the time is only ever on the Bitcoin
00:46 blockchain. Okay. So what is River and
00:49 Coinbase and BitKeep? Why do people say
00:52 that’s where my Bitcoin is and how could
00:55 that not be where it is? And the answer
00:57 is because that is where you hold the
00:59 private keys to your Bitcoin. All
01:02 Bitcoin is always on the Bitcoin
01:04 blockchain, but who controls the private
01:07 keys to that Bitcoin determines who gets
01:10 to spend the Bitcoin, who gets to send
01:12 the Bitcoin to someone else, etc. So, if
01:15 your Bitcoin is on Coinbase, what that
01:18 means is Coinbase holds the private keys
01:20 to your Bitcoin and you access those
01:22 private keys with a username and
01:24 password and a two-factor authentication
01:26 code that usually they send to your
01:28 email for example. Okay? If same with
01:30 River, same with Robin Hood, same with
01:32 PayPal, same with any of that, your
01:34 Bitcoin is always on the Bitcoin
01:36 blockchain and you are using the private
01:39 keys that are held by one of those
01:41 companies to access your Bitcoin. So bit
01:43 key is similar with the difference being
01:47 you actually hold your private keys. In
01:49 the case of Bitkey, your private keys
01:51 are actually within your control because
01:54 the way it works, I won’t go into all
01:56 the technicalities, but your private key
01:59 to your Bitcoin is on your phone and
02:01 it’s on the key device and a backup key
02:04 is encrypted and stored on the block
02:06 servers. So it requires two of those
02:09 keys to move the Bitcoin. So if you lose
02:11 your Bitkey device, your phone can
02:13 restore the key to your device. If you
02:15 lose your phone, the Bit Key device can
02:19 restore the key to your phone. If you
02:21 lose your phone and your BitKey device,
02:24 then there’s in an encrypted copy of
02:26 your private key in your iCloud account
02:29 or your Google account. And one of your
02:31 what’s called they used to be called
02:33 trusted contacts, now they’re called
02:34 recovery contacts. one of your recovery
02:37 contacts can help you decrypt that key
02:40 that is stored in your iCloud account or
02:42 your Google account to move your
02:43 Bitcoin. So, the big difference about
02:45 Bit Key is that you control those
02:48 private keys yourself, which means
02:50 Coinbase or River or PayPal, they can
02:53 never take your Bitcoin away because
02:56 it’s you control the keys. Even the
02:58 company behind BitKey, which is called
03:00 Block, which makes the Square payment
03:02 terminals and the the Cash App app and a
03:04 lot of other things. In fact, the
03:06 Square, the company just got added to
03:08 the S&P 500 as one of the 500 most
03:10 prominent largest companies in America.
03:12 So, good for them. That’s a big deal.
03:14 And the company is run by Jack Dorsey,
03:16 who uh was one of the co-founders of
03:18 Twitter before he sold it to Elon Musk.
03:21 And uh Jack Dorsey is great and he’s a
03:23 huge proponent in favor of Bitcoin. So
03:27 the big powerful thing about BitKey is
03:29 you control the keys yourself, which
03:30 means nobody can lock you out. Nobody
03:32 can take your keys. You know, the
03:34 government can’t seize your funds unless
03:36 they physically seize you or they go
03:39 find your BitKey device and your phone
03:41 and unlock it and all of that, which is
03:43 obviously, you know, requires a warrant
03:45 and virtually always your participation
03:47 because otherwise they would not know
03:49 where to find it and where to get it and
03:50 what to do with it and all of that. So
03:52 uh the power of bit key which is bit i t
03:55 ke y bit.world
03:57 w is their website. The power of that is
04:00 you hold the private keys. But again in
04:03 all scenarios everyone’s bitcoin from
04:05 the beginning of time until now and
04:07 forever more the bitcoin itself will
04:10 always be on the bitcoin blockchain. So
04:13 when people say I I have it on Coinbase,
04:16 I have it on Robin Hood, what they mean
04:17 is I am trusting those companies to hold
04:20 my private keys for me, the Bitcoin is
04:23 always on the Bitcoin blockchain. And
04:24 when you transfer Bitcoin or you send it
04:26 or you spend it, it is moving ownership
04:30 on the Bitcoin blockchain from you to
04:32 someone else or from somebody else to
04:33 you. But again, all of those companies I
04:36 mentioned are just holding the private
04:37 keys for you. The difference about Bit
04:39 Key, which is why I’m such a big fan of
04:41 it, is that you control the private
04:43 keys, and they built it where it’s
04:45 basically impossible to lose the the
04:47 private keys. Like, I’ve gone into with
04:49 other videos why it’s basically
04:51 completely impossible to lose your
04:53 private keys with Bit Key. So, I won’t,
04:55 you know, regurgitate all of that here,
04:57 but, uh, Bit Key has basically made it
04:59 impossible to lose the keys to your
05:01 Bitcoin and entrusted you with the power
05:04 of having those keys. And they even have
05:06 an inheritance FA uh uh feature set up
05:08 that if something happens to you, your
05:10 loved ones can unlock your Bitcoin after
05:12 a six-month waiting period. And they’ve
05:14 got it’s just brilliant. It’s genius.
05:16 Like everything about it is just like
05:18 one of the most ingenious things humans
05:20 have ever made. So, where’s your
05:21 Bitcoin? Always on the Bitcoin
05:23 blockchain. Who controls your keys?
05:26 Maybe it’s River, maybe it’s Coinbase,
05:28 maybe it’s Robin Hood, maybe it’s
05:29 PayPal, maybe it’s Cash App. Ideally,
05:31 it’s you. Ideally, it’s you because you
05:34 bought a Bitkeye device and you control
05:36 your own keys so that the ability to
05:40 move and spend and buy and sell Bitcoin
05:42 is 100% in your control and nobody can
05:45 take it away from you and is the beauty
05:47 of Bit Key. So, especially if you have
05:49 more than $5,000 of Bitcoin and you want
05:52 to save it, store it safely outside of
05:55 the hands of hackers and scammers that
05:58 Bit Key is absolutely positively the
06:01 answer to that. But even in that case,
06:03 again, the Bitcoin itself is still on
06:05 the Bitcoin blockchain. You’re just
06:06 unlocking it, moving it, and spending it
06:08 with private keys, which is always the
06:10 case. And Bit Key puts those private
06:12 keys in your hands, which is very, very
06:15 powerful and pretty amazing. Have a
06:17 great evening, everyone.