The truth about lost Bitcoin: how many are unrecoverable
Bitcoin is one of the most popular crypto globally, with a circulating supply of 19.92 million BTC and a maximum supply of 21 million BTC.
But have you ever thought about how many Bitcoins have gone out of circulation or are permanently lost? According to reports, the number of lost or gone out of circulation lies between 2 million and 4 million BTC.
In today’s informative piece, we will dive deeper to unveil the exact amount of Bitcoin lost forever, how it went out, and what the current price of the lost BTC is. Lost Bitcoin is mainly caused by misplaced private keys and other modes.Bitcoin lost forever
As per the most recent estimates by Chainalysis experts, around 2.3 million to 3.7 million BTC are lost forever, making nearly 11 to 18% of the 21 million Bitcoin maximum supply.
Yet a report compiled by Fortune underlines that the number of Bitcoins gone out forever is 4 million BTC, which are valued at roughly $466 billion at the current price.
It is said that the Bitcoin mined in the initial years have often remained untouched, yet the majority of the wallets seem to have lost their private key, which resulted in permanent access loss to that BTC.
One such major incident includes James Howells, who discarded a hard disk with 7,500 Bitcoin, now valued at $86838847.01What does ‘Lost’ Bitcoin mean?
The term lost here does not mean completely destroyed, but rather that the Bitcoin remains on the blockchain. For example, suppose I own 10 Bitcoin and lose access to the wallet holding them. In that case, the chances of ever being able to use them again are extremely low.
However, this does not mean those Bitcoins are destroyed. They will remain on the blockchain forever, but without the original private key, they cannot be accessed or spent.
In some cases, Bitcoin recovery is possible, but if the seed phrase, private key, or other credentials are lost, the chances of regaining access become almost negligible.
It has also been reported at times that certain amounts of Bitcoin have been sent to inaccessible wallets. While this reduces the circulating supply, those coins still remain recorded on the blockchain permanently.
There is no shortcut to recover, reset, or override lost Bitcoin. However, there are speculations that advancements in quantum computing could one day break the encryption protecting some older wallets, particularly those with exposed public keys.Conclusion
Lost Bitcoin remains one of the most fascinating yet unfortunate aspects of the crypto world. While these coins are not destroyed and still exist on the blockchain, the inability to access them makes them practically unrecoverable.
With millions of BTC locked away forever, scarcity becomes even more significant, potentially driving long-term value. Unless revolutionary breakthroughs like quantum computing emerge, these lost coins will remain untouched, serving as a reminder of the importance of securing private keys and wallet credentials.