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Multisig For Nomad Capitalists
Multisignature – The Ultimate Tool For Nomad Capitalists.
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![multisignature for nomad capitalists](https://multisigsigner.com/wp-content/uploads/2023/10/multisignature-for-nomad-capitalists.png)
We greatly admire ‘The Nomad Capitalist‘ by Andrew Henderson. The ethos of going where you’re best treated and the principles of Bitcoin complement each other significantly. Bitcoin provides a ‘global offshore bank account’ that is accessible 24/7 from anywhere in the world, immune to inflation and capital controls. Multisignature adds even greater utility to this ‘offshore bank account,’ making the combination of Nomad Capitalism and Bitcoin seem like a perfect match.
After watching the video below about how The Bitcoin Family stores their Bitcoin in multiple countries by keeping a Ledger in various locations, it seems that multisig is not yet on Andrew’s radar. We don’t blame him for this, as his area of expertise lies elsewhere. Nonetheless, we feel it’s important to bring it to his attention because both he and his followers could greatly benefit from this incredible technology. In this article, we will explain what multisignature is and why it’s an especially valuable tool for Nomad Capitalists.
Understanding Multisignature
![multisignature explained](https://multisigsigner.com/wp-content/uploads/2023/10/multisignature-explained.png)
![multisignature explained](https://multisigsigner.com/wp-content/uploads/2023/10/multisignature-explained.png)
Storing Ledgers across various global locations can lead to single points of failure, which is entirely avoidable. While spreading Ledgers over different jurisdictions can reduce the chance of losing all your coins at once, each device remains susceptible to theft, destruction, confiscation, software/hardware failure, or you might lose access to it due to travel restrictions.
Multisignature, a Bitcoin-specific technology, addresses this issue: With multisig, you can use multiple hardware wallets spread around the world to create a single multisig address. This address requires a set number of devices to sign to move the funds. For example, you can create an address with three devices stored in three different locations, and configure it so that at least two of these devices need to sign to authorise a transaction.
This approach eliminates the central point of failure. If one device encounters any of the vulnerabilities described earlier, the remaining two are enough to recover the funds from the address. This means your setup is immune to any worst-case scenario in one of the countries. With the other approach where you had it spread over three Ledgers, you would lose a third of your money.
Why is Multisig Particularly Beneficial for Nomad Capitalists?
![multisig is perfectly suited for nomad capitalists](https://multisigsigner.com/wp-content/uploads/2023/10/multisig-is-perfectly-suited-for-nomad-capitalists.png)
![multisig is perfectly suited for nomad capitalists](https://multisigsigner.com/wp-content/uploads/2023/10/multisig-is-perfectly-suited-for-nomad-capitalists.png)
Nomad capitalists are continuously searching for the most secure methods to protect their wealth. Often, they own multiple properties or vaults in various countries. Multisig, a multi-vendor, multi-jurisdiction system, is considered the safest wealth storage option and can be easily established by those owning multiple homes or vaults. Let’s consider the example of a Nomad Capitalist, John, who implements the trifecta strategy:
Multisig: A Practical Example for Nomad Capitalists
John possesses homes in Malaysia, Georgia, and Colombia, spending four months a year in each. He sets up a 3-of-5 multisig system, meaning he registers five devices, requiring the signature of three for a transaction. He securely stores one device in each home, carries one with him during travels, and entrusts the last one to a friend in the US with a codeword to sign on his behalf. This setup proves robust in the following ways:
- A thief would need to steal three devices to access the bitcoins.
- In none of the jurisdictions can the bitcoins be confiscated.
- Even if two countries impose restrictions, John can still access his coins.
- As long as John is in one of his three home countries, he can access his coins.
- Natural disasters, war, or turmoil in one or even two locations won’t jeopardise the bitcoins.
- By using devices from different vendors, John safeguards himself against software or hardware failures.
John, being a nomadic capitalist with three homes, is in a unique position to establish one of the most secure value storage systems in the world, with minimal effort and cost. The only requirement is the purchase and set-up of signing devices and establishing multisig protocols. For an average person, such geographical diversification would be a costly and challenging endeavor. However, for John, it’s simply a matter of logistics since he’s already traveling between these locations.
Note:
*It’s worth noting that this is just one example of such a set-up. The system can be customized and optimized according to personal preferences. John could rent vaults in each country to store his devices, or he could keep the pin-protected devices at home while storing the backup seed in a secure vault. For enhanced security, he could keep the key he carries with him in a vault in a different country, thus ensuring that even under duress, he would be unable to send the coins. John could also opt for simpler 2-of-3, 2-of-4 multisig setups, or others. The options are virtually limitless.
In addition, he can also configure his multisig set-up to safeguard against loss or any inconveniences during travel. Consider this scenario: if his Ledger doesn’t hold any coins but merely a key to a multisig requiring two keys to move the coins, what recourse would custom officers have?
Nowadays, Multisig is Quite Simple
If multisig is an unfamiliar term or sounds complex, don’t fret. It is quite simple today. In the early years, multisig was a daunting task that required the use of offline computers with disabled Wi-Fi and Bluetooth. Software and data had to be transferred via USB sticks and standardised and wel tested multisig software was rare. However, current multisig wallets are extremely user-friendly and the use of signing devices is well-integrated. With a bit of research, any Nomad Capitalist can set up multisig.
Ease into Multisig with Collaborative Custody
If you are unable or unwilling to invest time into understanding multisig, collaborative custody offers an excellent way to ease in. In this arrangement, you can share responsibility with the provider, access customer support, and enjoy a nearly foolproof user experience. Meanwhile, you can learn the basics of multisig and securely hold your assets without much effort. As an initial step into multisig, we recommend checking out Unchained. If you prefer one-on-one guidance, The Bitcoin Adviser is a great resource. If setting up your own multisig arrangement seems daunting, collaborative custody is an easy and secure first step.
The Fascinating Future of Multisig
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![the future of multisig is bright](https://multisigsigner.com/wp-content/uploads/2023/10/the-future-of-multisig-is-bright.png)
Multisig technology is already extraordinary today, but its future promises even more remarkable advancements. Exciting features such as time locks, time decay, and spending conditions will contribute to more secure configurations and facilitate inheritance without the intervention of third parties. Although these features are currently available, they are not yet included in free and open-source (?) software for everyday users.
- Time locks: This feature prevents the spending of coins for a predetermined period, safeguarding them from theft or impulsive selling.
- Time decay: After a certain period, fewer signatures are required to spend the coins, which helps protect against the loss of signers.
- Spending Conditions: For transactions below a specified amount, fewer signatures are needed, enhancing accessibility and usability and permitting others restricted access.
For immediate access to these features, you can opt for a paid plan with Nunchuck. However, if you prefer not to pay, we anticipate these features will become available free of charge within a few years. The future of multisig is bright, and we think that every Nomad Capitalist should adopt it!