The Wolf Of All Streets

Episode: The Biggest Lie Bitcoin Investors Are Told In 2026 (Not What You Think) | Matej Zak

Host: Scott Melker
Guest: Matej Zak, CEO of Trezor
Date: March 7, 2026

Episode Overview

This episode centers on the true risks facing Bitcoin investors—moving beyond price volatility to focus on how and where people are actually storing their assets. Scott Melker sits down with Matej Zak, Trezor's CEO, to tackle self custody, the rise of exchange and ETF-based storage, new attack vectors powered by AI and potentially quantum computing, and the evolving importance of hardware wallets. The conversation mixes technical insight with real-world anecdotes, best practices, and reflections on freedom and privacy in the digital age.

Key Discussion Points & Insights

1. The Real Biggest Risk: Custody, Not Price

• Host’s opening argument: The greatest risk may not be price swings but who controls your keys (00:00).
• Zak’s key insight: “The biggest hack in the whole industry happened last year on an exchange…self custody being completely decentralized…those attacks at scale are basically impossible.” (00:23, 03:53)
• The ongoing risk of exchanges as "honeypots for hackers" vs. the decentralized protection of self custody.

2. Evolution of Security Threats: AI and Quantum Computing

• Quantum: “If Quantum comes, the whole world has a problem…your bank accounts, your credit card, the security of the digital space would be kind of at risk.” (00:45, 21:35)
• AI: Matej Zak expresses more immediate concern about AI-powered phishing/scams: “The speed of these attacks that can happen scares me…AI also plays a sort of accelerating factor here.” (00:45, 29:59, 49:31)

Memorable Quote:
"I'm worried about AI and the speed of this attack... and that's why hardware wallets may be more important now than ever before." —Matej Zak (00:45)

3. The Philosophy & Mission Behind Hardware Wallets

• Trezor’s pillars: Privacy, security, usability (06:47)
• Self custody enables true ownership and privacy, especially as regulations increase KYC/AML and reduce privacy (06:47, 09:15).
• Hardware wallets don't require personal data—no KYC, no accounts: “We don’t really know who the users are…there are no customer accounts that will be connected to whatever you own.” (06:47)

Memorable Quote:
"We are ultimately a freedom technology company…we really provide users with the option to freely transact and for the governments and companies, etc. not to mess with what you truly own." —Matej Zak (09:15)

4. Usability: The Past, Present, and Future of Self Custody

• Seed phrases pioneered by Trezor have “probably hundreds of millions” of users (11:50).
• Major hardware usability advancements: “If you can use a smartphone, you can use a hardware wallet.” (11:50)
• On future of usability: Giving users the option between seed phrases, biometrics, NFC tags, etc.—but interoperability is key (14:39).

Quote:
"I think people should have options. There should be interoperability as an option to move between different providers…so if you buy Trezor and set it up, you can move directly to some other solution." —Matej Zak (14:39)

5. Keeping Pace with Threat Actors: Open Source Advantage

• Hardware production is slow, but open-source means “thousands of security experts, engineers…will try to break things," strengthening defenses (17:20).
• Security by obscurity (closed-source) is riskier than open-source transparency (17:20).

6. Quantum Threats and Future-Proofing Hardware

• Bitcoin and all digital assets would need a post-quantum crypto upgrade: “If quantum comes, the whole world has a problem…But I do believe the network will get updated in time.” (21:35)
• Trezor’s new models have post-quantum signatures, ready to update as needed (21:35).

7. Human Behavior: Still the Biggest Risk?

• Exchanges are not invulnerable; user mistakes are an enduring risk: “People are still at a certain degree threat to themselves…But the product will lead you.” (27:54)
• Phishing remains a top threat, with increasingly sophisticated AI-driven scams: “It was just like an AI, and they prompted them to download some malicious malware.” (29:59)

8. Best Practices for Hardware Wallet Security

(31:51–35:51)

• Buy from trusted sources only; verify packaging and seals.
• Follow onboard instructions; never keep digital copies of your seed phrase.
• Store backups offline, ideally in multiple forms (paper, metal).
• Keep backup locations private and never boast about your holdings.

“Never take a photo of [your seed phrase], never store it digitally…keep it completely offline.” —Matej Zak (33:00)

9. Physical Security & Dispersing Risk

• Real-world threats: Targeting, kidnappings (esp. in France) remain concerns; privacy is crucial (36:26).
• “Do not go public about how much Bitcoin you have…stick to your privacy measures.” (37:04)
• On dispersal: “If you lose the hardware wallet, it’s still fine as long as you have the backup.” (38:14)
• Multiple wallets or geographic diversification may be wise depending on usage, with “savings account” wallets kept extra secure (40:42).
• Trezor’s “multishare” feature lets you split your backup into shards, requiring only a subset to recover your assets (41:14).

10. Who Is Self Custody For?

• Shift from products for "everyone" to more targeted, security-conscious users (43:33).
• Lower barriers for new users, but focus on advanced users with Trezor Safe 7 (43:33–46:16).

11. Upgrading Devices: Why & When

• New devices like Trezor State 7 introduce hardware-level improvements (secure elements, better screens, support for more networks) and improved usability (47:16).
• The risk reduction comes from stronger, more transparent hardware security and an improved user experience.

"Objectively, Trezor 37 is the most secure way from the hardware perspective… the experience is much better." —Matej Zak (47:16)

12. The Meaning of Freedom Tech

• Zak shares Trezor’s origin story in post-communist Prague where distrust of governments is rooted in real history: “There was some communism and…people lost all their savings because the government basically came and said…now you only own like 5 bucks.” (53:49)
• Hardware wallets seen as a defense for financial and human sovereignty globally.

Notable Quotes & Memorable Moments

• On AI and Quantum Risk:
  “If quantum comes, the whole world has a problem…Besides Quantum, I’m worried about AI and the speed of [attacks].” —Matej Zak (00:45, 21:35, 49:31)

• On Open Source vs. Closed:
  "Open source from this perspective, it's awesome. That's where we try to be very bullish on open source and it's our DNA." —Matej Zak (20:38)

• DIY Security Rules:
  “Never take a photo of it, never store it digitally…keep it completely offline.” —Matej Zak (33:00)

• On the mission:
  “We are a freedom technology company… we give some power and rights to the individual as they should have them.” —Matej Zak (53:49)

• Darkly Comic Moment:
  “Wasn't there a time when competitors were marketing like a necklace with your hardware wallet on it or something?” —Scott Melker (35:51)
  “Yes. And to this day we make jokes about it in presentations.” —Matej Zak (36:00)

Key Timestamps for Important Segments

• 00:00: Introduction—Biggest risk isn’t price, but custody.
• 03:53: Bybit hack & the honeypot problem with exchanges.
• 06:47: Trezor’s pillars: privacy, security, usability.
• 09:15: Navigating regulatory challenges and privacy risk.
• 11:50: Usability journey, the seed phrase innovation.
• 14:39: Interoperability and the future of recovery options.
• 17:20: Staying ahead of attackers: hardware is “hard,” open source is key.
• 21:35: Quantum threat; post-quantum measures in Trezor devices.
• 27:54: The eternal people vs. tech debate in self custody security.
• 29:59: AI-powered phishing & real-world scam anecdotes.
• 31:51–35:51: The beginner’s guide to hardware wallet safety.
• 36:26: Real-world attacks on Bitcoin holders; discretion is critical.
• 38:14–41:14: Wallet diversification, backup strategies, multishare analogy.
• 43:33–46:16: Target audiences for new devices and user segmentation.
• 47:16: Why (and when) to upgrade to new hardware.
• 53:49: Trezor’s roots: history as a motivator for “freedom tech.”

Big Takeaways

• Self custody remains the gold standard for security and privacy in Bitcoin, even as regulations increase and centralized offerings improve.
• AI and, more distantly, quantum computing, are evolving the threat landscape—making hardware wallets more important than ever.
• Usability is no longer a major barrier, with modern hardware wallets accessible to almost anyone, but users must still follow core security principles.
• The industry’s ethos—rooted in freedom and personal sovereignty—still motivates leading innovators, and recent history shows why self custody still matters.

Final Advice:
"If you haven't tried self custody, please do that. You can start with software wallets...but once you're ready, try a hardware wallet." —Matej Zak (56:55)