‘Bitcoin Family’ hides bitcoin, ethereum and litecoin in secret vaults

A recent Chainalysis report examining wallets holding bitcoin shows that 11.8 million bitcoin is in the hands of long-term investors, 3.7 million is lost, another 3.2 million is circulating among traders, and the remaining 2.4 million have yet to be mined.

“We can guess which wallets are cold storage – as they have particular behaviors, like receiving large amounts of crypto from a single source and not sending any for a long time until they are emptied all in one go – but you cannot definitively tell that a wallet is being used as cold storage,” said Gradwell.

In the case of the Taihuttu family, 26% of Didi’s crypto holdings are “hot.” He refers to this crypto stash as his “risk capital.” He uses these crypto coins for day trading and potentially precarious bets, like when he sold his dogecoin for a profit and then bought it back when the price of DOGE bottomed out. 

The other 74% of Taihuttu’s total crypto portfolio is in cold storage. These cold hardware wallets, which are spread around the globe, include bitcoin, ethereum and some litecoin. The family declined to say how much it holds in crypto.

Bitcoin, ethereum and litecoin are all in the midst of yet another climb higher, up 57%, 83% and 61%, respectively, in the last three weeks.

Moving bitcoin to cold storage isn’t a new idea. For as long as there’s been bitcoin, there’s been a way to store it cold. But it requires more upkeep.

“Cold storage requires a lot more permissioning in order to access it, whether it be in a bank vault or whether it be buried in the Andes mountains,” said Van Phu, a software engineer with crypto fintech start-up Floating Point Group. 

And while Taihuttu said it’s easy to top up the addresses of these cold storage wallets with fresh crypto coins, retrieving them is a different story. Drawing down on his cold crypto requires physically flying to his many hiding spots.

Taihuttu is trying to put a crypto cold wallet on every continent so it’s easier to access his holdings.

This content was originally published here.

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