The Ultra-Rich are now storing Bitcoin in underground cold storage vaults

Image source: pixabay - 132369

Silicon Valley millionaires and billionaires are safeguarding the Bitcoins in vaults like any other material wealth. According to Bloomberg's article by Tom Metcalf, a startup company, Xapo, has built a network of underground vaults on five continents, including one in a decommissioned Swiss military bunker.

We have heard of theft on exchanges, online wallets and phishing attacks that creates an opportunity for hackers to steal Bitcoin. Due to Bitcoin's holding value in the long run, it has become a well sought after digital asset. Vaults are often for cold storage because liquidity is an issue. The entire transfer process and paperwork could take days.

It takes upward of 48 hours for your Bitcoin to show up in your Xapo wallet from the company’s vaults if you want to withdraw them, that is on business days — your wait can stretch up to 4 days if you happen to catch the weekend in between.
Source: thenextweb - Neer Varshney

Image source: pixabay - Ippicture

Added Security of the Underground Vaults
These Bitcoin vaults are basically computer servers locked offline and disconnected from the internet (source: popularmechanics - David Grossman). Imagine having your assets being under safeguarding and watch, that would perhaps put the millionaires at ease. Xapo's vaults are spread across five continents, establishing a network of secure vaults may serve more than its purpose as Bitcoin storage - this also meant that Xapo now holds the world's 7 percent of Bitcoin.

Losing your private key for your crypto wallet would be as bad as losing your money. "Putting keys on a device connected to the Internet is both convenient and perilous: Hackers have proven adept at obtaining them from afar." warns Tom Metcalf on the Sydney Morning Herald.

Xapo is a road to success
Xapo creates vaults which are probably too expensive due to its maintenance fees for common use. The vault is, however, open to use for companies and institutions. This could by far be the most secure way to store Bitcoin. Xapo also has an App version of its Bitcoin wallet that one could easily signup for.

Similarly, Coinbase platform has also launched a Bitcoin storage 'vault' that requires additional verification steps and 48-hour delays for withdrawals. See techcrunch - Kim-Mai Cutler for more details.

Image source: pixabay - Tumisu

Staying Safe on Steemit
Steemit also provides some security features similar to vaults:

• Steemit's protocol requires a 7-day wait for vested Steem Power to be withdrawn
• Savings require a 3-day wait before withdrawal

However, the authorization of Steemit's private keys to other apps increases the vulnerability to phishing attacks. Malicious links may contain immediate transfer protocols and phishing websites are fake websites where private keys get stolen. I recommend the following:

• Checking your wallet transactions directly on https://steemdb.com (Block Explorer) at least once a day
• Stay away from dubious websites that want access to your Steemit account
• Change your Master key/password every month
• Do not choose auto-fill options or save your password on public computers or rarely-used devices

-tysler