Bitcoin’s popularity is growing among institutions and private investors alike as they better understand its value proposition as a store of value and as a means for censorship-resistant payments. As the value of bitcoin is progressing steadily to the status of digital gold, it also becomes a honeypot for hackers and attackers. Due to the digital nature of bitcoin, its security concerns are not well understood by most of its buyers.
Over the years, millions of bitcoins have been lost due to poor and negligent management of Bitcoin private keys. Theoretically, this further increases the scarcity of bitcoin, since those bitcoins are inherently lost forever. However, we presume no one wants to contribute to bitcoin’s scarcity at their expense. Investors are seeking reliable and easy-to-use solutions to store their digital gold over a long span of years, without worrying they will get lost, hacked or stolen. That’s why, in this article, we will explore the concept of cold storage, an increasingly popular method to hold your bitcoins.
What Is Cold Storage?
Bitcoin cold storage is the term used to designate an operational security system intended for long-term and offline bitcoin holdings. Generally, it’s used for amounts with substantial value and is considered as the safest way to store bitcoins. The opposite of this kind of system are hot wallets where the funds are stored online and are constantly exposed to threats such as hacks.
Plenty of solutions and products are emerging and thriving on the market for acquiring bitcoins, storing them and spending them. An individual may amass bitcoins for lots of different reasons. One may only be interested in it for its speculation aspect and be completely indifferent for its most popular ethos, such as privacy and sovereignty. No matter the reason, the investor that plans to hold onto
