How many Bitcoins have been lost and how to keep them properly.
- Bitcoin is a revolutionary technology that allows users to own and control their finances without intermediaries. But with this freedom comes great responsibility.
- It is estimated that millions of Bitcoins are lost forever due to forgotten passwords, lost hardware wallets or improper safekeeping.
- In this article, we’ll take a look at how many Bitcoins are estimated to be lost, why this happens, and how to safely store your coins.
How much Bitcoin has been lost?
Bitcoin has a fixed maximum amount of 21 million coins. However, not all of them will be in circulation at any given time. According to an analysis by Chainalysis, it is estimated that approximately 3 to 4 million BTC are irretrievably lost. This equates to approximately 15-20% of the total supply.
Further analysis shows that:
- Approximately 1 million BTC is associated with Satoshi Nakamoto addresses that have never been moved.
- A lot of BTC was lost in the early years of Bitcoin when people didn’t know how to store it properly.
- Addresses with BTC that have not moved in over 8 years are often considered potentially lost.
Specific cases of lost bitcoins
Hard drive in a landfill – In 2013, Brit James Howells accidentally threw away a hard drive containing access keys to 8,000 BTC. He is still funding efforts to dig it up.
Lost passwords – Programmer Stefan Thomas has 7,002 BTC on his encrypted hard drive, but forgot the password. He only has a few more tries before he locks the drive permanently.
How are Bitcoins being lost?
1. Forgotten or lost access keys
Bitcoin can only be held using a private key. If you lose it, you lose access to BTC. That’s why it’s important to back up your key properly.
2. Hardware failure
If you store your keys on a physical device (e.g. a safe, Ledger or USB drive), there is a risk of loss or damage. Without a backup, BTC is gone forever.
3. Bad seed recording
Seed phrases (12-24 words) is the only way to recover your BTC wallet. If you write it down incorrectly or store it in an unreliable location, you could lose your Bitcoins.
4. Sending to the wrong address
Bitcoin transactions are irreversible. If you accidentally send BTC to the wrong address (e.g. typographical error or incorrectly copied QR code), you cannot get it back.
5. Death without transfer of access
If a Bitcoin holder dies without handing over his keys or instructions, his BTC will remain locked in the blockchain forever.
How do I safely store my Bitcoins?
1. Using a secure wallet
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Hardware wallets (Trezor, Ledger) – The best way to protect against hacks and viruses.
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Software wallets (Electrum, BlueWallet, Wasabi) – Suitable for smaller amounts and everyday use.
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Paper wallets – Secure against online attacks but vulnerable to physical loss.
2. Correct seed backup
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Write down the seed phrase by hand and store it in a safe place.
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Do not send seed online or to the cloud as it can be hacked.
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For extra safety, use metal seed storage plates that can withstand fire and water.
3. Protection against hacking and phishing
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Never share your private key or seed.
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Use two-factor authentication (2FA) where possible.
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Verify addresses before sending BTC – fraudulent QR codes can lead to stolen funds.
4. A plan in case of death
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Writing up instructions for the family or lawyer.
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The use of a multisig wallet that allows access to multiple people when certain conditions are met.
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Secure storage of access information in a trusted environment.
Conclusion: Don’t join those who have lost their BTC.
Bitcoin is a powerful tool, but it requires proper governance and accountability. Lost Bitcoins can never be recovered, so it is crucial to follow a safe storage policy:
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Use hardware wallets
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Safely back up seed phrase
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Pay attention to online safety
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Have a plan for long-term BTC preservation
Holding Bitcoins can be easy if you follow these guidelines. Don’t underestimate security – history shows that anyone who ignored it ended up paying a heavy price.
Be your own banker and protect your BTC correctly!
#Be your own bank.
Products to help you with long-term storage of your password/password.
