I'm a little confused with all the tech junks that is being talked about here. Can u plz tell me in simple terms that if I use blockchain.info to create an address, download the paper wallet containing the private key and keep it and the password safe, then am I secured ?
I can see gmaxwell was talking about some try-catch which may kill the entropy in the seed. Is that present in blockchain.info as well ?
It is hard to test javascript code in every browser and if the entropy generator fails under some systems, usually nobody will notice (until two people create the same private key by accident). That said, I haven't audited the blockchain code, so I cannot say whether it has this problem or not.
But if you want to generate a paper wallet, because this is the most secure storage, it is a bad idea to do it on a service that stores your private keys in the cloud (even if it stores them encrypted). If someone guesses your password or phishes it, he will get access to your keys. If you generate a paper wallet, do this on an offline computer. The private key should never leave this computer at all (except to the printer). If you are paranoid, install a fresh system on the computer before and after you generate the paper wallet, to avoid trojans on your computer.