You could, for sure. I'm not keen on leaving a key in the car, but you could certainly duplicate it and store it somewhere safe.

In terms of cloud, I'm currently building a product for this. Initially not self-hosted but working towards that option and the fun UX things we can do like key sharing to a family member etc.

Regarding "house burns down" ... couldn't you just duplicate the hardware wallet and keep it in a vehicle or another third location?  Is there a threat vector there that I am missing?  Are you self-hosting your "cloud"?

tenuous

I'm a fan of 2-of-3. Ideally, you'd have 1 hardware, 1 mobile and 1 in encrypted cloud backup or with a trusted family member.

I want security, self custody and viable options for recovery.

The scenario that this doesn't cover is the "What if my house burns down and I lose 2 keys". To resolve that scenario, we need to advance multi-sig UX (which is also a part of what I'm currently working on).

Daily discussion thread

saloon

For those who secure their stack with multisig, what M-of-N did you choose and why?