What happens to one’s BTC if a wallet goes bust?

Bitcoin Questions and AnswersCategory: General questionsWhat happens to one’s BTC if a wallet goes bust?

Robin asked 2 years ago

Are the bitcoins lost for good?

Ofir Beigel replied 2 years ago

Can you please elaborate on what you mean when you say “goes bust” ? I don’t understand the question.

3 Answers
Ofir Beigel answered 2 years ago

OK now I understand :) 
If you’re Bitcoins are stored on a 3rd party wallet (e.g. Coinbase, Circle or any exchange for that matter) then you don’t really control your Bitcoins, and if that wallet goes bust so do your coins. That’s why it’s advised never to keep large amounts of Bitcoins on those wallets. The best for of storage for large amounts are independent wallets where you hold the keys to the wallet (e.g. Electrum, TREZOR, Greenaddress).
 

Steven Hay replied 8 months ago

Hello Hai,

Your Ledger device will continue to function as normal even if the Ledger co. goes bust. The Ledger wallet software and apps are open source (https://github.com/LedgerHQ) and there’s a lot of users. I’m pretty sure that the users would maintain the software if the company stopped.

I’m not quite sure how Ledger handles firmware updates but I think even those device updates could be managed by the community, one way or another.

In short, it wouldn’t be a major issue for coin recovery at all. In the worst case scenario, one could just import the coins held by the Ledger device to a different wallet.

Hai replied 8 months ago

So wat happens if ledger goes out of business, how do I use my ledger seeds to recover my coins?

Robin Ward answered 2 years ago

Let’s say one uses Coinbase as one’s wallet.  If Coinbase went out of business and could not host their website anymore, what would happen?

Robin answered 2 years ago

Great.  Thanks!

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