Is it Possible to Have $1 Trillion Wallet: BitGo Certainly Think So!
Cryptocurrency firm Bitgo is aiming to manage more than $1 trillion at their disposal years later from now on. Considering the market cap of the all cryptocurrencies combined, which is a bit more than $200 billion, this aim is a bit unrealistic.
5 years ago from today, BitGo held about $10m worth of cryptocurrency at their disposal. BitGO CEO Mike Belshe certainly thinks that it’s possible as he set to have a speech next month in the Stanford University called ”Securing the Trillion Dollar Wallet.”
Considering almost of all the assets in today’s world set to digitalize (or tokenize, specifically) we can be sure that this could turn a bit realistic in the future. But designing a system like BitGo is pretty hard. Not to mention a very hard process of hardware and software, the legal parts of it also quite stressful. But the company managed to get the licence and they are now fully regulated and audited custodian for digital assets.
Also, CEO Belshe doesn’t think it will be possible in the future the get the money out of cold storage in 10 minutes, and urged not to believe when someone claims this. Belshe said the vast majority of the assets they have involves lots of separate and independent money from lots of people so therefore they need key signatures to make it happen. He added:
“Some of the technology guys out there are saying, ‘hey we can get you out of cold storage in 10 minutes.’ I’m sorry, but if you can get a billion dollars out of cold storage in 10 minutes, that means there’s somebody’s finger that you can threaten.”
BitGo currently handles $15 billion in monthly crypto transactions and Belshe thinks the industry will continue to evolve in the near future. Belshe admitted his clients are looking to have big balance sheets as he accepts BitGo doesn’t have it at the moment. Belshe added:
I would love if the big players came in and put their balance sheet behind the security of their custodianship of digital assets. It would be amazing for all of us.”
Belshe said they are in talks with a dozen of hedge funds as he admitted they are eager to use their service.
You can have the most secure software in the world and the most secure hardware. But inside your company what’s the policy for keeping things safe? What happens if your data center goes down?” he said. “We have policy, procedures and plans for all this, that have been tested and are in place.
Belshe also warned to investors against potential scammers, as he said they need to be careful and not speak to everyone who considers themselves as a ‘qualified custodian’.