Bitcoin Military Deployment

Deployment Preparation and Extended Absence

This memo is published by CustodyStress, an independent Bitcoin custody stress test that produces reference documents for individuals, families, and professionals.

Communication Constraints

A service member receives deployment orders. The deployment lasts six months, possibly longer. The location is remote. Communication access will be limited and irregular. Before leaving, the service member manages personal finances, pays bills in advance, and arranges for household matters to be handled during absence.

That service member holds bitcoin. Bitcoin military deployment creates a coordination problem when the holder becomes unavailable for extended periods while family members at home may need to access assets, respond to technical issues, or manage custody materials during that absence.

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Communication Constraints

Military deployments impose communication limits. Internet access may be restricted, monitored, or unavailable. Phone calls happen on military schedules, not personal schedules. Email communication faces delays. Some deployments involve classified operations where communication is prohibited entirely for security reasons.

A spouse at home encounters an issue with bitcoin custody. The hardware wallet displays an error message. Or a software update is required. Or a security notification arrives from an exchange. The spouse wants to ask the deployed service member what to do. They send a message. Days pass before a response arrives. The response may be brief due to limited communication time.

Complex technical questions cannot be answered in restricted communication environments. The service member cannot walk their spouse through multistep procedures over limited email access. They cannot video chat to show locations of stored materials. Detailed technical support requires bandwidth and time that deployment conditions do not provide.

Some deployments involve complete communication blackouts for weeks at a time. Combat operations, submarine deployments, or classified missions eliminate all contact. Family members at home face bitcoin custody questions with no ability to reach the service member for guidance. The holder is alive and well but completely unreachable.

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Duration Uncertainty

Deployment orders specify initial durations. Six months is common. But extensions happen. A six-month deployment becomes nine months, then twelve. The service member cannot refuse the extension. The family at home must adapt to longer unavailability than originally planned.

Bitcoin custody arrangements made for six months may not sustain for twelve. A spouse receives enough information to handle routine matters for the expected period. The deployment extends. New situations arise that the original preparation did not cover. The service member cannot supplement the preparation from deployment.

Market conditions change during extended deployments. Bitcoin prices rise or fall significantly. A spouse wants to sell some holdings. Did the deployed service member grant authority to make such decisions? The original conversation before deployment did not cover this scenario because the deployment was supposed to end before market conditions changed this much.

Hardware degrades over time. A hardware wallet battery fails nine months into deployment. The spouse finds the device dead. Did the service member leave backup seed phrases? Are those stored somewhere accessible? The spouse searches but the deployment has lasted longer than the preparation anticipated.

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Authority Delegation Before Departure

Service members preparing for deployment create powers of attorney. These legal documents grant authority to spouses or family members to manage financial matters. Banks and brokerages recognize these documents. The authorized person can access accounts, pay bills, and make financial decisions.

Bitcoin custody does not respond to legal powers of attorney. The cryptographic system processes signatures from private keys. Legal authority to act does not generate those signatures. A spouse holds power of attorney but cannot access bitcoin without the seed phrase or hardware wallet PIN.

Some service members share seed phrases before deploying. They write down the words and give them to their spouse. This grants operational access. But it also creates new risks. The spouse now holds complete control over the bitcoin. If the relationship deteriorates during deployment, the spouse could move the bitcoin without the service member's knowledge.

Other service members provide partial delegation. They share the location of the hardware wallet but not the PIN. Or they explain the backup procedure but do not actually write down the seed phrase. These partial measures work for some scenarios but not others. The spouse can locate materials but cannot use them without additional information the service member did not provide.

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Physical Access to Stored Materials

A service member stores their hardware wallet in a home safe. The spouse knows the safe combination. During deployment, the spouse needs to access the wallet to check balances or confirm addresses. They open the safe and retrieve the device. So far, delegation works.

The device requires a PIN. The spouse does not know it. The service member assumed they would be available to provide the PIN if needed. Or they planned to share it but ran out of time during departure preparations. Or they mentioned it once and the spouse cannot remember. Physical access exists. Operational access does not.

Another scenario involves safe deposit boxes. A service member stores seed phrases in a bank safe deposit box. The box requires two keys and a signature. The service member took one key on deployment. The spouse holds the other key but cannot access the box without the service member's signature. Bank policy does not allow access with only a power of attorney for boxes requiring two keys.

Geographic separation creates access barriers even when information exists. The service member stored backup materials at their parents' house in another state. During deployment, the spouse needs those materials. Travel to retrieve them takes time and money. The spouse tries to have the service member's parents mail the materials. The parents are uncomfortable shipping something valuable. Access becomes complicated by distance and trust dynamics.

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Technical Changes During Absence

Software updates release during deployment. A bitcoin wallet application prompts the spouse to update. They are uncertain whether to proceed. The update might change functionality. Or it might introduce bugs. Or it might require re-entering seed phrases. The spouse delays the update, unsure of consequences.

Security notifications arrive. An exchange sends an email about unusual login attempts. The spouse does not know whether this is normal or threatening. They want to ask the deployed service member. Communication is limited. By the time they connect, days have passed. The urgency is unclear.

Hardware fails. A computer used to access bitcoin stops working. The spouse knows the private keys are on that computer. They do not know if backups exist elsewhere. They cannot risk discarding the broken computer without knowing whether it holds irreplaceable information. The service member is unreachable for consultation.

New regulations or requirements emerge. Tax filing deadlines approach. The spouse knows bitcoin holdings must be reported but does not know the detailed transaction history. The deployed service member has that information but cannot send detailed files through restricted communication channels. Tax filings get submitted with incomplete information.

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Multi-Signature Arrangements Under Deployment

A service member uses a multisignature wallet requiring two of three signatures. They hold one key. Their spouse holds another. A trusted friend holds the third. This arrangement prevents single points of failure and provides redundancy.

Deployment begins. The spouse wants to move bitcoin to cover unexpected home repairs. They sign with their key. They need one more signature. The service member is deployed and cannot sign. The spouse contacts the friend. The friend is uncomfortable signing without the service member's explicit approval. The friend tries to contact the service member. Communication delays stretch for days.

Eventually, the service member responds authorizing the transaction. The friend signs. The bitcoin moves. The entire process took two weeks due to coordination delays across deployment communication constraints. What would have taken minutes under normal circumstances required extended coordination.

Worse scenarios occur when the third keyholder becomes unavailable. The friend moves unexpectedly. Their phone number changes. The spouse cannot locate them. The deployed service member also cannot contact them. The multisignature arrangement requires three parties coordinating while one is deployed and another has become unreachable.

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Emergency Scenarios at Home

Medical emergencies occur during deployment. A spouse becomes ill and faces large medical bills. Insurance covers some costs. Out-of-pocket expenses remain significant. The family's bitcoin represents available funds that could pay these bills. The spouse cannot access it without information the deployed service member holds.

Phone calls are attempted. The service member is on patrol and unreachable for weeks. Email is sent. Response time is measured in days. Meanwhile, medical providers want payment. The spouse uses credit cards at high interest rates while bitcoin sits inaccessible.

Home disasters create urgent financial needs. A pipe bursts. Repairs cost thousands. The bitcoin would cover it easily. The spouse remembers discussing the hardware wallet location but not the PIN. They search through papers for any written information. Nothing is found. The deployed service member cannot receive messages for another week due to their current assignment.

Natural disasters compound problems. A hurricane damages the home. The family evacuates. In the chaos, the hardware wallet is left behind. Later, when the spouse tries to return for it, the area is restricted. The deployed service member holds the seed phrase but the spouse never wrote it down. Both physical device and backup information are now inaccessible.

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Trust Erosion During Absence

Extended separations stress relationships. Deployments last months or years. Some relationships survive. Others deteriorate. When trust erodes during deployment, bitcoin custody arrangements face new vulnerabilities.

A spouse with full access to seed phrases considers their options. The service member is deployed. The relationship has become strained. The spouse could move the bitcoin to their sole control. The deployed service member would not know until they return and check balances. By then, months have passed.

Even without intentional bad acts, relationship stress affects coordination. A spouse becomes less motivated to manage the deployed service member's bitcoin holdings carefully. They focus on immediate household needs. Wallet maintenance gets neglected. Security updates are skipped. Account monitoring stops. The bitcoin custody degrades through inattention rather than malice.

Service members returning from deployment sometimes discover that shared custody arrangements changed during their absence. A spouse moved bitcoin to a new wallet. Or sold some holdings. Or made decisions that the service member did not authorize. These actions may have been justified by circumstances. Or they may represent trust violations. Either way, the deployed service member had no ability to monitor or prevent them.

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Casualty and Missing in Action Scenarios

Combat deployments carry casualty risks. A service member is killed in action. The family transitions from waiting for return to grieving and managing estate matters. Bitcoin held by the deceased service member becomes part of the estate.

If the service member shared access information before deploying, the family can access the bitcoin. If they did not, the bitcoin may be permanently lost. Military death benefits process through established channels. Bitcoin does not. There is no military procedure for recovering a deceased service member's bitcoin holdings.

Missing in action situations create even more uncertainty. A service member disappears during operations. Their status remains unknown for months or years. The family cannot access accounts because the service member is not confirmed dead. They cannot ask the service member for access because they cannot reach them. Legal limbo prevents both estate processes and communication attempts.

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Return and Reintegration Complications

A service member returns from deployment. They expect to resume managing their bitcoin. They discover their spouse made changes during their absence. Wallets were moved to new addresses. Account passwords were changed. The service member trusted their spouse with access. The spouse acted independently while facing pressures at home.

Conflicts arise over what actions were necessary versus what actions exceeded granted authority. The spouse claims they had to move bitcoin to pay bills. The service member questions whether those bills required bitcoin sales or whether other funds could have been used. Trust damage outlasts the deployment.

Other complications involve lost information. A spouse managed custody materials during deployment but did not document actions taken. Software was updated. Accounts were accessed. Transactions were made. The deployed service member returns to a changed custody environment without clear records of what changed or why.

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Summary

Bitcoin military deployment exposes coordination dependencies that fail under extended unavailability and communication constraints. Service members become unreachable for weeks or months while families at home face custody management needs. Communication channels cannot support detailed technical guidance.

Legal powers of attorney grant authority but not operational access. Delegation that works for traditional assets fails when cryptographic materials are required. Duration uncertainty means preparations made for expected timelines become inadequate when deployments extend.

Physical separation prevents access to stored materials. Technical changes during deployment create decisions that spouses cannot make confidently without consultation. Emergency scenarios at home demand immediate access while the service member remains unreachable. Understanding these dynamics explains why bitcoin custody arrangements degrade under military deployment conditions despite careful planning.

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System Context

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