If a lot of money is at stake, like businesses that conduct a business and therefore have to hold a lot of bitcoins or other coins for that matter, you’ll certainly need to consider a highly secure environment for them. Most people would instantly think “Ah, a hardware wallet, done deal”, but what if you are holding over a billion worth of crypto?
Investors that were lucky enough to venture a business or just invest wisely the past years are starting to rethink their storage methods. Some people might find it a bit of an overkill, but they are actually starting to secure their wealth in vaults on undisclosed locations across the globe. Or better said, hidden inside the globe.
Recently a company called Xapo has taken it upon them to secure wallets on 5 different continents across the globe, in secured underground vaults. The company currently holds nearly $10 billion worth of Bitcoin in its vaults, Bloomberg states.
At the time of writing the Bitcoin market cap consists of 155 billion dollars. This means that this company alone is under control of over 6.45% of this entire market. It looks like companies and other entities have less and less interest to keep their equity in regular banks. If you think about it the benefits exceed those of a bank by miles, if you leave out the heavy fluctuations of cryptocurrency prices of course. Basically, a fault like this reduces the chance of being hacked to 0, and nobody will be accessing that fault except for the employees of Xapo, which has so far proven to be a solid partner for storing one’s crypto wealth.
Biometric locks and armed guards are protecting the vaults containing the private key to a customer’s wallet. Once someone is ready to retrieve their funds from the Vault, Xapo begins an advanced security process to verify their identity. They then employ extensive authentication measures to ensure that he or she is the one who initiated the request. Due to earlier events like Mt. Gox, Bitfinex, Poloniex and the list goes on – these kinds of security providers will become more and more wanted in the future. Perhaps it will even become easily affordable for smaller participants in the cryptocurrency market.
Personally, we love the idea of such storage solutions, but we can imagine people would want to be in control of their of wealth because after all the core of cryptocurrencies leans towards a decentralized atmosphere and peer to peer transactions.