We continuously hear that Bitcoins are regularly lost, but what are the correct scales and how many bitcoins losing forever?
Every fifth Bitcoins losing forever
A study conducted by Chainalysis, a company aimed at targeted digital forensics, showed that 3.79 million BTC are potentially lost forever and can no longer be retrieved.
3.79 million – more than 18 percent of the maximum bid of BTC, 21 million. Given that the bitcoin price is calculated by dividing the market valuation of the digital asset by its turnover volume when the volume of bitcoins reaches 21 million, the bitcoin price should be 18 percent higher than its actual cost.
Here is the data in a different format, which shows how bitcoins are out of circulation – those that were mined 2-7 years ago and those that were in 2009 and 2010.
These figures reflect bitcoins, which are really lost, and not hacked or otherwise stolen – in these cases, of course, bitcoin is not lost, since the thief controls them.
“On the one hand, direct calculations about market cap do not take lost coins into consideration. Considering how highly speculative this field is, those market cap calculations may make it into economic models of the market that impact spending activity” said Kim Grauer, senior economist at Chainalysis in an interview with Fortune.
“In the future, more bitcoins will be lost. But the rate at which they disappear will be much lower than in the past since, now that they’re so valuable, people will be more vigilant about keeping track of them”
concludes with Fortune. But many will never be able to recover their lost millions of dollars in bitcoins. And such people include James Howells.
Lost more than $ 55 million
According to the New York Post in 2009, during which the BTC price was below $ 1, and when the hash-power of bitcoins was extremely low due to the lack of people hanging cryptocurrency, Howells earned more than 7,500 bitcoins per week, using a primary graphics processor.
In 2013, when the price of the BTC surpassed the $ 100 mark, Howells began searching for a flash drive, which he used back in 2009 to store the private keys to the 7500 BTC he had obtained. Then he remembered that instead of throwing an empty flash drive, he mistakenly threw out a flash drive with private keys.
“I mined more than 7,500 coins over one week’s time in 2009; there were just six of us doing it at the time, and it was like the early days of a gold rush. Four years later, I had two hard drives in a desk drawer. One was empty, and the other contained my bitcoin private keys. I meant to throw away the empty drive — and I accidentally threw away the one with the bitcoin information,” said Howells.
Realizing that he threw away millions of dollars, Howells admitted that he felt physically ill. Howells said: “I looked up the price, did the calculation and thought, S…t. Worth around $2 or $3 million.’ A few months later it was worth $9.9 million. I was annoyed, pissed off, sick.
“I spoke to the people at the landfill and told them that I threw away a hard drive worth $10 million. They looked at me stupidly”
We keep from stealing, but we lose
This is often due to the efforts to keep from theft, as the software developer from Atlanta, Syl Turner, expressed the problem: “It’s problematic in that if you have your code written down in too many places, people can find it and take your money,” said Judge. “But
“if it’s in too few places, you may not be able to find it yourself”
Just as gold bullion is lost in the sea or $ 100 can be burned, bitcoin can disappear from the Internet forever. When all 21 million bitcoins are namely, the actual amount available for trade or costs will be significantly lower. So how much will the bitcoin cost in the light of these losses? I think time will tell.
But one thing is certain that if the lost gold is possible to be found, then bitcoins losing and probably no one will return.