I thought of securing my wallet for a while and came up with the following
- Think of a strong password you can memorize. We call it PassA
- Generate a long random password. I call it PassB
- Create a small truecrypt container that holds the wallet(s) i want to backup/store. The password used on this volume would be made up of both PassA+PassB or PassB+PassA or just pick a place where to insert PassA into the string of PassB (do remember that position though!)
Now split up PassB using Shamir's sharing scheme. Hold a few shares yourself so you don't need many to recover PassB
Give some shares to your friends, family, colleagues, etc.
I thought of using gpg for the wallet but the issue of having the wallet file on disk temporary bugged me, recovery is easy.
I can just point a portable bitcoin version to the truecrypt volume to access the wallet file.
That's the reason i picked TC over GPG. I do agree that GPG is in general the better one though.
Anyone sees a better way to do this using GPG?
A few points.
I'm not convinced (nor are many people who know far more about these things) that recovery is easy, at least after overwriting the file using shred or a normal system utility like srm or rm -P. Also, you can have the exact same shared password scheme with any encryption tools, not just TrueCrypt. A GPG private key (which is required for full functionality) typically also requires a passphrase to unlock.
Seems to me like you are trying to avoid having a clear-text wallet.dat on the computer. Without getting too off-topic, we are talking about different goals. The use of GPG here is to encrypt data which is "at rest" -- like for backup or archival. Disk encryption (which grants access to a filesystem but makes data hard to get once the image is unmounted) tries to defend against a different threat -- someone stealing the computer. As mentioned above, these disk encryption schemes can also be defeated in various ways.
Many operating systems include mechanisms for disk encryption. This was TrueCrypt's claim to fame before bitlocker/filevault. Now, TrueCrypt's raison d'etre is the so-called "deniable" filesystem.
"Containers" are essentially disk images that you mount from within TrueCrypt. GPG-encrypted files are just... files. My point in creating this thread was to suggest that GnuPG would be a more suitable and trustworthy tool for the sorts of things use that most bitcoin users would be doing.