What happens to lost Bitcoin & how many are lost? | Independent Reserve (2024)

FAQs

What happens to lost Bitcoin & how many are lost? | Independent Reserve? ›

These 1.8 million “lost” coins account for around 8.5% of the total supply of 21 million—93% of which have already been mined—that will ever exist. In most cases, it's impossible to know for sure what became of a given wallet, but it's a safe bet many are indeed gone forever.

This happens surprisingly often when transferring BTC; if users erroneously send it either to the wrong network or to an invalid address (missing a digit, etc.), it is completely unrecoverable.

However, it's estimated that around 20% of all existing Bitcoin, or approximately 3-4 million Bitcoin, are lost or inaccessible due to various reasons such as forgotten passwords, lost private keys, and computer crashes.

One notable study by Chainalysis, a blockchain analysis firm, suggested that around 20% of the existing Bitcoin supply, equivalent to approximately 3.7 million bitcoins, may be lost or inaccessible.

Key Takeaways. Lost Bitcoin refers to BTC that the current owner can't locate, either because they forgot their private key or lost their hardware wallet device. Estimates suggest that around 6 million BTC, or 30% of Bitcoin's supply, have been irretrievably lost, amounting to $554 billion in value.

However, some estimates can be made based on blockchain data and surveys of Bitcoin holders. According to data from Bitinfocharts, as of March 2023, there are approximately 827,000 addresses that hold 1 bitcoin or more, representing around 4.5% of all addresses on the Bitcoin network.

It's estimated that all bitcoins will be mined by the year 2140, at which point the last block reward will be released. If a Bitcoin is lost or destroyed, it cannot be recovered, which can lead to a decrease in the total supply of bitcoins and an increase in their overall value.

“Overall, back-of-the-envelope calculations suggest that around three-quarters of users have lost money on their bitcoin investments,” the study said.

While most lost bitcoins are indeed irrecoverable, there are some avenues for potential recovery: Despite Bitcoin's renowned security features, which prevent unauthorized access to funds, they can pose a challenge for rightful owners as well. High-tech firms specialize in helping users recover lost private keys.

Once your virtual currency has been stolen it is incredibly unlikely that you will be able to recover it.

Who owns the most Bitcoin? ›

Who owns the most Bitcoin in the world? The top Bitcoin holder is still believed to be Satoshi Nakamoto, the anonymous creator of Bitcoin, who reportedly holds around 1.1 million BTC across many wallets. Despite this large holding, the top 10 holders collectively only possess about 5.5% of the total Bitcoin supply.

Losing more money than you make

It's not that no one has made money off crypto. In fact, our survey finds that of those who've had crypto, 28% sold it for more than it was worth. But a higher rate of investors — 38% — sold their crypto for less than it was worth when they bought it. Another 13% broke even.

They Cracked the Code to a Locked USB Drive Worth $235 Million in Bitcoin. Then It Got Weird. Stefan Thomas lost the password to an encrypted USB drive holding 7,002 bitcoins. One team of hackers believes they can unlock it—if they can get Thomas to let them.

Bitcoin's supply is capped at 21 million. The final halving will be in 2140. From then on, no new BTC will be minted. After the last bitcoin has been mined, miners will no longer receive bitcoin rewards for adding blocks to the blockchain.

Miners who successfully add blocks to a blockchain automatically receive transaction processing fees and new digital tokens. Creates economic opportunities. The accessibility of crypto mining is creating new business opportunities for tech-savvy people around the world.

Unfortunately, with cryptocurrencies, there are no chargebacks, and disputes do not automatically replenish funds in an account. This is largely because crypto assets are not covered or insured by government-sponsored programs created to protect consumers and investors.

Other than that your best bet is to look through old files and try to figure out which “wallet” or “exchange” your bitcoin was first purchased. If you find that out and recover the password, that is easiest. Without access to the private key within the account, it's nearly impossible to access the crypto.

Never Invest More than You Can Afford to Lose

Cryptocurrencies are still relatively new and extremely volatile assets that can gain or lose significant value in a single day.