Three days after his incident with the Bitcoin (BTC) Blockchain wallet, Peter Schiff admitted his mistake with the key, by confusing it with the password
The famous cryptocurrency skeptic, gold fan and CEO of Euro Pacific Capital, Peter Schiff, said he admitted his mistake with the key to his Blockchain wallet. Schiff said he had solved the “mystery with Bitcoin” by realizing that he confused the pin of his Bitcoin wallet with the password.
A tweet from January 22 of Schiff himself tells of the confession, explaining that he knew the pin of his wallet, but then the Blockchain application was updated, which caused Schiff to be disconnected from it. Therefore, he could no longer access his funds. Schiff also admitted that he never wrote his seed phrase:
My #Bitcoin mystery is solved. I mistook my pin for my password. When Blockchain updated their app I got logged out. I tired logging back in using my pin, which was the only “password” I had ever known or used. I also never had a copy of my seed phrase. Honest but costly mistake!
Peter Schiff admitted his mistake
On July 4, 2019, Schiff said he owned Bitcoin (BTC), Bitcoin Cash (BCH) and Ethereum (ETH). Now, Schiff announced that he lost his funds in Bitcoin the day before, convinced at the beginning that his wallet was damaged. For Schiff, that was the reason he lost access to his funds, so he said:
“I knew that having Bitcoin would be a bad idea, but I never realized it was that bad!”
The incident attracted the attention of the cryptocurrency community on how the lack of ease of use in the ecosystem can cause the loss of keys and, consequently, the loss of funds.
Ruthless Crypto Community
In response to Schiff’s confession, part of the crypto community criticized Schiff and perceived his mishap as a “rookie mistake.” When Schiff initially announced that he lost the funds, Binance CEO Changpeng Zhao said:
“Man, this is wrong in many ways …
I am not sure that even a centralized exchange can help you secure your currencies.
I can’t believe I’m about to say this, but maybe “you should stay in fiat?”
Zhao suggested his solution, saying that for most, keeping crypto assets in an exchange “is safer than keeping the keys.”
Ethereum co-founder Vitalik Buterin said:
“Disappointed at people replying to this with” crypto is what it is, it’s your job to be super-careful and write down backup seeds in three places. “We can and should create better wallet tech to make security easier.”
There is still much to do
This event shows that Schiff would not be the only one to blame for his mistake and that there is much to do about it. In this regard, some media such as Cryptoslate and Cryptoglobe are of the opinion that “not all of the blame for this incident should be pointed out to Schiff.”
Cryptoglobe said that if Schiff tells the truth about never knowing the password of the backup phrase, then it seems that the person who created the wallet for him (Schiff had said it was Eric Voorhees, Founder and CEO of ShapeShift) may not have told him to Schiff the wallet password and not having told him to take note of the backup phrase.