Their loss, your gain

Greetings,

Rizzo, the Bitcoin Historian here, back this week to unpack the story of a company that's changed the game in Bitcoin security – Casa.

There’s no doubt they are the gold standard in Bitcoin self-custody today. They’re the service that finally got me to take my coins off of the exchange, which I’m a bit ashamed to admit, I was doing way for way too long because of my discomfort with using super technical Bitcoin custody solutions.

Personal journey aside, few know the story of Casa and its origins, as well as how far they’ve moved the ball forward for self-custody.

Let's dive in.

A Problem Worth Solving

The founders of Casa saw a glaring issue in Bitcoin when it came to custody.

Before 2018, there were dedicated hardware wallets, but there weren’t any real services you could really use to get support. Either you had a friend who was a hardcore Bitcoiner, you did a ton of online research, or you were on your own.

Case in point, take Mt. Gox, which imploded and took nearly 750,000 BTC with it in 2014. Then, there were the people who got Zhao Tonged and had $16 billion brunt in the Bitcoinica collapse of 2012. You know the stories.

Simply put, people have lost insurmountable amounts of BTC over the years. Data estimates that as much as 4 million bitcoin is lost forever due to issues with bad key management and worse custodians.

Internet Gods Unite

Casa didn’t just assemble a team; it assembled a team of crypto avengers to tackle the issue.

Its founding team included Alena Vranova, co-founder of Trezor; Jeremy Welch, a Google veteran; and Jameson Lopp, the Bitcoin OG who famously erased himself from the internet.

I’d highly recommend reading this story on how Lopp disappeared in 15 steps. It really shows how truly committed Casa’s team is to sovereignty.

Casa’s vision? Allow users to secure Bitcoin with multiple private keys. (A standard wallet is secured with only one private key).

By using multisig wallets, Casa offered something novel. Instead of direct custody, users could access custody assistance. This meant no more single points of failure, and a helping hand along the way.

Here's Jameson Lopp explaining the importance of multisig security:

But to make self-custody easy, Casa knew they'd have to take Bitcoin UX to a whole new level. 

So they brought in the biggest gun they could find: Scott Hurff, the man who created the "Super Like" for Tinder. He’s one of the reasons why the Casa app is such an amazing experience today.

Really you can get a real-time analysis of not just your balance, but the health of all your keys. Amazing. I open the app at least 5 times a day.

The 3 of 5 multi-sig 

Casa allowed users to secure their Bitcoin with up to 5 different keys, which could be hardware wallets distributed across the globe, including one recovery key kept by Casa for emergencies.

Crucially, this means if you lose a key, Casa can help you recover your funds. (That’s happened to me, but that’s another story).

But the company didn't stop there. Next came the 2-of-3 multisig, lowering the cost of premium security and making it accessible to more Bitcoin users. 

Both these multi-sigs brought a key innovation, in my opinion. The mobile backup key. This meant that Casa users could use their smartphones as a secure private key, generating a long, random secret key, and encrypting it.

In layman’s terms, that meant that your smartphone could be part of your set up, and that this key can be easily recovered also.

And lest we forget their white-glove customer support – something no other Bitcoin wallet had ever offered. Casa customers, and I’ve done it many times, can talk to Bitcoin experts and get one-on-one consulting on their security. 

For me, this was a huge step in my journey, and I love talking to Casa’s support. I talk to them for updates on my set-up quarterly. (Shout out to Shannon!)

Challenges and Criticisms

Today, Casa continues to expand its offering. They’ve added new support for Yubikeys, allowing these security tools to act as hardware wallets. (Very cool).

Even cooler – what the company is doing on the inheritance side. My wife and I actually just finished our set-up this weekend, and I can say the hardest part was convincing her to simply open her email :)

Casa is looking to bypass the extensive legal processes that prevents families from recovering their crypto. The solution works across the globe and across jurisdictions. In the borderless and sovereign spirit of Bitcoin. 

I’ve tried finding a regular lawyer to help with inheritance. I’ve never been able to and I’ve worked in the industry for 10 years.

Essentially, this service gives your inheritance recipient the tools to access Casa’s recovery features under certain conditions.

I’m looking forward to seeing how this feature improves and expands.

Today, Casa is backed by some of Silicon Valley’s biggest names, including AngelList founder Naval Ravikant and Nic Carter of Castle Island Ventures. They've raised over $20 million to continue their mission of making Bitcoin security accessible to all.

For me, whenever Casa releases a new feature, it's worth paying attention to. 

All in all, Casa has raised the bar for Bitcoin self custody. It’s a must have if you’re serious about transitioning your hard money wealth through generations, but aren’t super technical (like me!).

Seriously, try casa.io/history today. They’re legendary!

Take 10% off with the promo code PETERIZZO.

Rizzo