If you want to know what a man really thinks about something, ignore his words and focus instead on his actions. While some ultra-rich personalities have been publicly trash-talking Bitcoin and other alt coins recently, it has been found out that at the same time they are quietly buying crypto currency and storing it in ultra-safe bunkers buried deep inside mountains.
That should tell you many times more about what they truly think about Bitcoin than anything that’s been publicly said. After all, it is only the very most precious things to humanity that are worthy to be stored in such safekeeping. The Svalbard seed vault comes to mind. So does the Federal Reserve gold vault deep under New York City.
If actions speak louder than words, then maybe, just maybe, the ultra-rich believe Bitcoin has a very prosperous future…
Argentine entrepreneur Wences Casares has spent the past several years persuading Silicon Valley millionaires and billionaires that Bitcoin is the global currency of the future, that they need to buy some, and that he’s the man to safeguard it. His startup, Xapo, has built a network of underground vaults on five continents, including one in a decommissioned Swiss military bunker.In the rarefied world of wealth management, Xapo is known for a client list studded with family offices, and for occasionally letting a journalist peek into a stronghold to write about its security. But one secret has proven elusive: how much digital cash does it really hold?
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.
Even in the colorful world of crypto the cache is remarkable — amounting to about 7 percent of the global Bitcoin supply. It would mean Xapo, just 4 years old, has more “deposits” than 98 percent of the roughly 5,670 banks in the U.S. But as a custodian it’s regulated differently. The Swiss subsidiary is overseen by the self-regulating Financial Services Standards Association, which audits members to ensure they comply with anti-money-laundering rules. Xapo serves U.S. customers through a Delaware corporation that’s registered with the U.S. Treasury Department’s Financial Crimes Enforcement Network and is licensed in several states.
The outsize holdings underscore the faith that Casares — a serial entrepreneur nicknamed “Patient Zero” for stirring Silicon Valley’s interest in Bitcoin — has garnered among his acolytes and at major crypto investment firms, such as Grayscale and CoinShares.
“Everyone who isn’t keeping keys themselves is keeping them with Xapo,” said Ryan Radloff of CoinShares, which has more than $500 million of Bitcoin stored at Xapo. “You couldn’t pay me to keep it with a bank.”