E322 Multisig versus Passphrase with a Bitcoin Executor

<p>Multisig or a passphrase ("<a href= "https://anthonyspark.com/e304-poor-mans-multisig-for-bitcoin-inheritance/">poor man’s multisig</a>") are two ways to transfer custody to your bitcoin executor upon your death. Let’s compare, so you can decide which best fits your bitcoin inheritance plan.</p> <h2>Why multisig for bitcoin inheritance?</h2> <p><img class="aligncenter size-medium wp-image-44092" src= "https://anthonyspark.com/wp-content/uploads/2023/06/Why-multisig-for-bitcoin-inheritance-300x169.jpg" alt="Why multisig for bitcoin inheritance?" width="300" height= "169" /></p> <p>The main feature is <a href= "https://anthonyspark.com/e256-multisig-keys-for-bitcoin-inheritance-planning/"> splitting access to your bitcoin</a>, so that it’s not catastrophic if just one of your keys is revealed, leaked, or hacked. While you should always be careful of how you manage your security materials, using a multisig allows you to be a little less uptight with your security practices. By contrast, if all of your stash is in a singlesig wallet, then access to that one key could cost you all of your bitcoin. If one key is lost, you lose it all. If one key is hacked, it’s all stolen.</p> <p>Also, this is not necessarily what’s best for estate administration (<a href= "https://anthonyspark.com/e287-how-long-does-probating-bitcoin-take-in-new-york/">which can last years</a>), but rather the immediate transfer of custody to your executor. So this is not about how your executor will hold your keys during his tenure as your executor. This analysis is specifically regarding the pros and cons of how smooth the transfer will be from you to your executor upon death.</p> <p>Lastly, the general pros and cons of multisig vs. singlesig with a passphrase (multi vs. single vendor risk, costs of multiple hardware wallets, ease of setup, etc.) are beyond the scope of this analysis.  For the purpose of this discussion, we are just looking at the pros and cons of transfer to your executor upon your passing.</p> <h2>Leaving a passphrase for your