Billionaires are hoarding Bitcoin in bunkers
The world’s super-rich is hiding $10 billion worth of Bitcoin in bunkers underground.
Billionaires from around the globe are using the services of a new company to bury their crypto holdings with reinforced, bomb-proof concrete.
The stash of cryptocurrency is kept in several encrypted computers that will never come close to being connected to the Internet.
Protected by armed guards and blast-proof doors, these machines hold the keys to vast fortunes.
The man who holds these keys is Wences Casares, an entrepreneur from Argentina.
Casares has spent the last few years convincing Silicon Valley’s elite that Bitcoin is the global currency of the future.
And, on top of that, he’s convinced them to, not only, buy some, but to keep their Bitcoin in bunkers – his bunkers.
Safeguarding their wealth is the task of his startup, Xapo.
Mr. Casares’ company has built a network of underground vaults across five continents.
One of those vaults is a decommissioned military bunker in Switzerland.
According to a report by Bloomberg, Two Xapo clients say the firm secures roughly $10 billion of Bitcoin in bunkers.
Another source close to the project confirms this figure is an accurate estimate.
Although, due to Bitcoin’s price fluctuations, the USD value is hardly steady.
Retrieving stored Bitcoin in bunkers from Xapo’s vault takes about two days.
After the company verifies a client’s identity, it then authenticates the request.
Then using private keys from multiple vault locations, the transactions are digitally signed.
For any transactions to be authorized, approval from three separate vaults is required.
According to Ryan Radloff of CoinShares, which has more than $500 million of Bitcoin in bunkers at Xapo:
“Everyone who isn’t keeping keys themselves is keeping them with Xapo.
“You couldn’t pay me to keep it with a bank.”
Those backing Xapo’s Bitcoin in bunkers storage solution include billionaires LinkedIn co-founder Reid Hoffman and former Wall Street trader Mike Novogratz.
Speaking about the venture, Hoffman says he didn’t need much persuading to invest $20 million, saying:
“They’re the first folks who recognized custodial, and security functions would be key.
“He made the pitch in the morning, and in the afternoon I called him with an offer.”