Forgotten Passwords: $140 Billion Bitcoin Write-Off?
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Nearly $140 billion worth of Bitcoins is at risk of being permanently lost, according to online platform Chainalysis, due to forgotten passwords for decryption.
3.7 million Bitcoins worth almost $140 billion could permanently vanish from the market, as of January 18 this year.
Based on June 2020 figures, this represents around one-fifth of the total 18.6 million Bitcoins created in the market. Bitcoin’s infrastructure is designed to cap supply at 21 million.
German-born San Francisco-based programmer Stefan Thomas first shined a light on the issue after he revealed that he failed to gain access to his crypto wallet to access over more than $200 million worth of Bitcoin.
Thomas had already made eight successful attempts and he has two more remaining to save his sizeable Bitcoin holdings.
I would just lay in bed and think about it. Then I would go to the computer with some new strategy, and it wouldn’t work, and I would be desperate again, he recalls. I got to a point where I said to myself, ‘Let it be in the past, just for your own mental health.
Questions & Answers
Q.How many Bitcoins are currently at risk of being lost permanently?
How many Bitcoins are currently at risk of being lost permanently?
Around 3.7 million Bitcoins are at risk of being permanently lost due to forgotten decryption passwords. This amount was valued at almost $140 billion as of January 18 this year.
Q.What proportion of the total Bitcoin supply does the at-risk amount represent?
What proportion of the total Bitcoin supply does the at-risk amount represent?
Based on June 2020 figures, the 3.7 million Bitcoins at risk represent approximately one-fifth of the total 18.6 million Bitcoins created. The infrastructure is designed to cap the total supply at 21 million.
Q.Who brought this issue of forgotten passwords to public attention?
Who brought this issue of forgotten passwords to public attention?
San Francisco-based programmer Stefan Thomas highlighted the problem after failing to access his own crypto wallet. He had made eight unsuccessful attempts to retrieve his Bitcoins, which were valued at over $200 million.
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