There is An Underground Place Where the Wealthy Store Their Bitcoin Assets

Now Bitcoin Billionaires also have their safe, underground bunkers protected with a high level of security. The private, cryptographic keys need to exists as ones and zeros on actually computer memory.

The bunkers are run by a startup known as Xapo, founded by Argentine entrepreneur Wences Casares who has spent the past several years persuading Silicon Valley millionaires and Bitcoin billionaires that these assets need advanced protection.

According to an article by Bloomberg, The bunkers are filled with computer servers that are entirely disconnected from the internet and any other sort of computer network. The company does not actually store BTC, which exists on the public, distributed ledger known as the blockchain. Rather, the vaults store the private, cryptographic keys used to lay claim to particular Bitcoins.

The servers are guarded by people, as well as by automated security measures. This is done 24/7. The location of the vaults is designed to protect user funds from loss if there is a catastrophic event. If  there is a compromise in one location, the other vault location would still be accessible.

Xapo, has built a network of underground vaults on five continents, including one in a decommissioned Swiss military bunker.

Two Xapo clients said it houses roughly $10 billion of Bitcoin. Another person close to the venture called the figure an accurate approximation. Bitcoin’s price, after all, is hardly steady.

To add to Xapo’s testimony, Xapo’s billionaire backers include LinkedIn Corp. co-founder Reid Hoffman and former Wall Street trader Mike Novogratz, who’s in the process of setting up his own cryptocurrency merchant bank.

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