Like jggimi I also use Tarsnap. Have for many years.
Last year I lost a lot of files I care about.
Here's what happened: tarsnap is strongly encrypted with a key file which is (optionally) protected with a passphrase. I set a randomly generated passphrase for my key file and stored this in my password manager. So far so good.
I store almost everything I care about in /data/stuff/; this contains a lot of, well, "stuff", including the password manager database. Due to an extremely stupid fat-fingered mistake on my part I issued a rm -r /data/stuff, blowing away most of that directory before I could ^C it.
"No worries, 'sall good!", I thought, since I had a recent backup! I tried to restore it, and realized I had a problem when it asked for passphrase. My password database was removed. I could restore it from the backup, but I needed access to ... the password database. Due to the strong encryption, there is no way this data can ever be recovered.
A backup is only as good as the weakest link, and in my case the weakest link was that the passphrase was stored in only one location. Oops :-(
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UNIX was not designed to stop you from doing stupid things, because that would also stop you from doing clever things.
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