The Business of Bitcoin Cold Storage

Bitcoin is digital gold, and this continues to be its most appropriate and concise metaphor. I recently discussed some parallels between gold and bitcoin in an article about layered money and Lightning Network. In this writing I’d like to focus on the storage analogy. The capital market of gold relies upon protected, armored, and insured storage vaults around the world. Without a robust vault infrastructure, multi-generational savings held in physical gold would be impractical. Bitcoin, going forward, will be no different. Individuals keep gold secured in their homes, but countries and central banks build vaults. Individuals keep bitcoin private keys on laptops, hardware wallets, or pieces of paper in their homes, but countries and central banks will build vaults. Vaults storing bitcoin private keys have been around for years, but Fidelity recently set an asset management industry precedent that will redefine bitcoin’s custodial infrastructure landscape.

I have peppered this article with over a dozen articles, editorials, and media for anybody looking for a one-stop-shop of deep dive material for bitcoin’s investment case and financial system integration.

The Investment Case for Bitcoin

But I Just HODL

Private Key Management

The Business of Private Key Management

Fidelity

Next Up

Becoming a Major Asset Class

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bitcoin-native financial theory, adjunct professor of finance and business economics @USCMarshall