A maker of hardware wallets for cryptocurrency has recently confirmed they will add support for Bitcoin Cash. I’ve also been an advocate of not using these even before the Ledger Nano hack came out.
I suspect that some will lose their currency or at least have to try to recover it based on confusion over the two. I really think it’s a bad idea since most currencies have no built-in protection to sending into the abyss to a non-existent address of another blockchain.
I couldn’t have said it better myself although I have said as much about all cryptocurrencies which have a public ledger. Edward Snowden made the comment at the Blockstack event in Berlin, Germany. They are completely insecure and unsuitable for personal or business use in the long-term due to a lack of privacy. There are other issues that Edward touched on such as extremely slow transaction times and many more I’ve talked about in other posts.
Snowden also predicted that a coin which fixes these various issues could be the one to replace Bitcoin. While I fully agree privacy and security in Bitcoin and most other coins are an issue, aside from that most currencies are slow, inefficient, difficult to use and simply don’t work properly to send or receive payments. This will all eventually be fixed but so far what I find is that some currencies fix one problem while ignoring the rest.
I have warned for awhile about these hardware wallets. I’ve never trusted them as you truly don’t know what is in the hardware or firmware and if it could be extremely vulnerable. As bad as it sounds a traditional, secure PC is still the safer way to handle your cryptocurrency.
A teenager stumbled upon a vulnerability by noting the CPU that controls the private keys cannot differentiate between authentic or user made firmware. This CPU is used to transmit data including keys. Without much effort he was able to compromise this supposedly secure hardware wallet.
On top of that it looks like Ledger tried to downplay the issue and brush off the teenager who warned them of the vulnerability. In all fairness physical is required but that’s not good, you shouldn’t worry that if your hardware wallet is found that someone could easily extract your private keys and coins from it!
They’ve also recently admitted another vulnerability exists where attackers could trick users to send out their funds to hackers.
For this reason I still don’t recommend hardware wallets, you are much safer on a secure computer.