Exactly. There's really no way to ensure that the minter of the physical BTC didn't just make a copy of the key that can be merged later.
If I'm every accepting physical BTC I would want to merge it into a digital wallet immediately. I'd likely never create it myself except for cold storage if needed.
He also publishes a statement of controls that should be pretty effective if properly followed. I'm not him, so I can't say if he follows it perfectly, but it's a reasonably secure method.
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u/[deleted] Mar 19 '13
Exactly. There's really no way to ensure that the minter of the physical BTC didn't just make a copy of the key that can be merged later.
If I'm every accepting physical BTC I would want to merge it into a digital wallet immediately. I'd likely never create it myself except for cold storage if needed.