Uploaded July 2026 | Updated September 2026, 1 week ago
🚨 CHECK OUT TBL PULSE: research.thebitcoinlayer.com
In this episode, Nik and TBL's Demian Schatt cover a breaking security situation: a seed-generation vulnerability in Coldcard hardware wallets that has exposed some bitcoiners to theft, with reports of wallets being swept over the last twenty-four hours. Nik, speaking as a researcher rather than a cryptographer, explains how bitcoin seed phrases are generated, why the entropy behind a seed is what keeps it safe, and how Coldcard's default seed generation left certain users vulnerable while those who added dice-roll entropy or a passphrase are better protected. He explains why bitcoin ETF holders are not affected and why he has long favored diversified storage. The video is a call to action: check your wallet and how your seed was generated.
Get Nik's weekly bitcoin and macro research: thebitcoinlayer.com/subscribe
The Bitcoin Layer is proud to be sponsored by SOUND HSA. A Health Savings Account is the most tax-advantaged account in the US tax code: contributions are tax-deductible, growth is tax-free, and withdrawals for qualified healthcare expenses are tax-free too. But most people leave their HSA sitting in cash, losing purchasing power year after year. SOUND HSA lets you hold real bitcoin inside your HSA instead. Not an ETF, not a paper claim, but real bitcoin secured in multi-institutional, multi-signature cold storage. Use code TBL to waive the fifty-dollar setup fee. Transfer an existing HSA or open a new one today: soundhsa.com
The Bitcoin Layer is proud to be sponsored by Club Orange. One of the best parts of bitcoin is the people, and some of the strongest friendships and opportunities come from meeting other bitcoiners. Club Orange makes that easy. Whether you're at home or traveling for a conference, you can find local bitcoiners, discover the next meetup, and locate merchants that accept bitcoin, all in one app. Every city has an incredible bitcoin community; you just need a way to find it. Learn more at cluborange.org/thebitcoinlayer, or download Club Orange on the App Store or Google Play. When you join, send Nik a DM.
Timestamps:
00:00 A shocking development: Coldcard cold storage being swept
01:14 Is this a bitcoin protocol problem or a company problem
02:00 How bitcoin private keys and addresses are generated
03:56 Generating a first address with bitaddress.org and entropy
06:19 Seed phrases, BIP39, and why the words are just a number
07:30 The Coldcard default seed generation that got exploited
08:36 Where the vulnerability goes away: dice rolls and passphrases
11:00 Who is affected, and what to do right now
12:30 Why Nik favors diversified storage
14:51 Are bitcoin ETF holders at risk
17:01 A call to action and a message to those affected
20:36 The Foundation sponsorship and Nik's Coldcard backstory
23:00 Why cold storage by itself is not enough
📊 The Bitcoin Layer is a bitcoin and global macroeconomic research firm.
▶️ Subscribe and turn on notifications for TBL on YouTube.
🎙 Subscribe to The Bitcoin Layer on your favorite podcast platform.
🐦 Follow TBL on X: /thebitcoinlayer
Nik Bhatia's Twitter: /timevalueofbtc
Researcher Demian Schatt's Twitter: https://x.com/demianschatt
Lead Statistician Augustine Carrasco Twitter: https://x.com/AugustineCarrB
🚨 CHECK OUT TBL PULSE: research.thebitcoinlayer.com
In this episode, Nik and TBL's Demian Schatt cover a breaking security situation: a seed-generation vulnerability in Coldcard hardware wallets that has exposed some bitcoiners to theft, with reports of wallets being swept over the last twenty-four hours. Nik, speaking as a researcher rather than a cryptographer, explains how bitcoin seed phrases are generated, why the entropy behind a seed is what keeps it safe, and how Coldcard's default seed generation left certain users vulnerable while those who added dice-roll entropy or a passphrase are better protected. He explains why bitcoin ETF holders are not affected and why he has long favored diversified storage. The video is a call to action: check your wallet and how your seed was generated.
Get Nik's weekly bitcoin and macro research: thebitcoinlayer.com/subscribe
The Bitcoin Layer is proud to be sponsored by SOUND HSA. A Health Savings Account is the most tax-advantaged account in the US tax code: contributions are tax-deductible, growth is tax-free, and withdrawals for qualified healthcare expenses are tax-free too. But most people leave their HSA sitting in cash, losing purchasing power year after year. SOUND HSA lets you hold real bitcoin inside your HSA instead. Not an ETF, not a paper claim, but real bitcoin secured in multi-institutional, multi-signature cold storage. Use code TBL to waive the fifty-dollar setup fee. Transfer an existing HSA or open a new one today: soundhsa.com
The Bitcoin Layer is proud to be sponsored by Club Orange. One of the best parts of bitcoin is the people, and some of the strongest friendships and opportunities come from meeting other bitcoiners. Club Orange makes that easy. Whether you're at home or traveling for a conference, you can find local bitcoiners, discover the next meetup, and locate merchants that accept bitcoin, all in one app. Every city has an incredible bitcoin community; you just need a way to find it. Learn more at cluborange.org/thebitcoinlayer, or download Club Orange on the App Store or Google Play. When you join, send Nik a DM.
Timestamps:
00:00 A shocking development: Coldcard cold storage being swept
01:14 Is this a bitcoin protocol problem or a company problem
02:00 How bitcoin private keys and addresses are generated
03:56 Generating a first address with bitaddress.org and entropy
06:19 Seed phrases, BIP39, and why the words are just a number
07:30 The Coldcard default seed generation that got exploited
08:36 Where the vulnerability goes away: dice rolls and passphrases
11:00 Who is affected, and what to do right now
12:30 Why Nik favors diversified storage
14:51 Are bitcoin ETF holders at risk
17:01 A call to action and a message to those affected
20:36 The Foundation sponsorship and Nik's Coldcard backstory
23:00 Why cold storage by itself is not enough
📊 The Bitcoin Layer is a bitcoin and global macroeconomic research firm.
▶️ Subscribe and turn on notifications for TBL on YouTube.
🎙 Subscribe to The Bitcoin Layer on your favorite podcast platform.
🐦 Follow TBL on X: /thebitcoinlayer
Nik Bhatia's Twitter: /timevalueofbtc
Researcher Demian Schatt's Twitter: https://x.com/demianschatt
Lead Statistician Augustine Carrasco Twitter: https://x.com/AugustineCarrB
