Why bitcoin is even scarcer than you think

CONTENT

  • At the moment, more than 18.5 million BTC have been mined in the world, but not all of them are available.

  • Lost, burned or simply forgotten bitcoins significantly reduce the supply of military-technical cooperation.

  • According to experts, about 20% of mined coins can be irretrievably lost.

International consortium of news organizations developing transparency standards.

The number of “lost” bitcoins reaches about 3.7 million BTC. About 20% of mined coins can be lost forever.

It is common knowledge that the final supply of bitcoins is limited to 21 million coins. This means that under no circumstances will the number of coins in circulation exceed this value. Bitcoin enthusiasts consider this characteristic of a currency to be the most important factor affecting its value..

At the moment, about 18.5 million coins have already been mined in the bitcoin network, which is about 88.1% of the final supply of bitcoins..

When will the last bitcoin be mined? Join the discussion in our Telegram channel – and you will find out everything!

However, in reality, the actual amount of BTC in circulation is much less than it is generally believed, and this makes Bitcoin an even more scarce asset. About a fifth of all mined bitcoins have not been in motion for about five years due to several main reasons.

Satoshi’s reserves

The mysterious creator of bitcoin Satoshi NakamotoIn 2009, someone (one person or group of developers), hiding under the pseudonym Satoshi Nakamoto (Satoshi Nakamoto), revolutionized the digital … More  still owns huge reserves of military-technical cooperation. According to various estimates, in 2009, Satoshi mined about 1.1 million BTC, and since then he has never moved them, as if letting the crypto community understand that he was not going to pour these coins into the market..

Thanks to this altruism of Satoshi, the volume of bitcoins circulating in circulation has been reduced by almost 6%. This is a very large amount, and the market is still very nervous about any incomprehensible movements of the military-technical cooperation from addresses that have been inactive for a very long time. Such fears are understandable, since with such a supply of bitcoins as Satoshi’s, it will not be difficult to bring down the market if desired..

Recently, BeInCrypto reported how bitcoin plummeted by $ 200 in less than an hour in response to news that bitcoins mined back in 2009 were suddenly in motion.. Then many at first were afraid that it was Satoshi himself..

Lost private keys

The legendary protection of digital assets from unauthorized external attacks is a double-edged sword. The loss of a private key or mnemonic phrase for address recovery permanently deprives the owner of bitcoins of access to his funds.

Why bitcoin is even scarier than you think

This also includes the problem of the inheritance of cryptoassets in the event of the untimely death of their owner. We have already said that almost 90% of investors are worried about what will become of their cryptoassets after their death. However, they are in no hurry to take any measures on this matter..

Moreover, the death of one person can lead to the loss of huge amounts if this person owned the private keys from the funds of the crypto exchange. A famous example is the story of the Canadian exchange QuadrigaCX. As a result of the alleged death of its founder, 17 thousand clients of the exchange immediately became victims, who filed lawsuits in the amount of about $ 300 million.

Bitcoins are considered “lost” if they have not been in motion for at least five years. According to the analytical company Chainalysis, about 3.7 million BTC now fall into this category (approximately 20% of the total volume).

Burned bitcoins

And finally, some of the coins are intentionally burned by sending them to special addresses (burn addresses). Such addresses are public, but funds cannot be spent from them, since the private keys to them are unknown..

This is done for various reasons. For example, such proof of burn (or PoB) is sometimes necessary to maintain fair play or to obtain any mining privileges or tokens..

The Amount of Bitcoin Is Scarcer Than We Think (The Cryptoverse #129)

One of these addresses is, for example, 1CounterParty address. In general, more than 2,700 BTC were sent to similar addresses..

Disclaimer

All information contained on our website is published in good faith and objectivity, and for informational purposes only. The reader is solely responsible for any actions he takes based on the information received on our website..

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Why bitcoin is even scarier than you think

Bitcoin Is Much Scarcer Than You Think

Why bitcoin is even scarier than you think
Why bitcoin is even scarier than you think
Why bitcoin is even scarcer than you think

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