edited for content
- Sep 14, 2002
- Reaction score
- L.A. area
I mentioned this before it's another reason bitcoin scares me, and I admit it's largely I just don't understand it
"Around 20% of the existing 18.5 million Bitcoin — worth a total of $140 billion – are in stranded wallets, according to the cryptocurrency data firm Chainalysis, The New York Times reported on Tuesday. "
I think one guy had 220 million and no password, I believe his is worth close to 700 million now.
If you read the article or the NY Times one(paywall) it explains that you get 10 guesses and then are locked out for good. So there are apparently quite a few people who have used most of their 10 guesses and are in limbo, they have millions of dollars in value locked in there they can't get out without the password, and no central entity to contact and get help. A nephew of mine has a co worker who has something like 400K locked up and he works in IT, swears on a stack of bibles he has the right password, and the wallet won't accept it. he said the guy used some high tech password maintenance app and he's had high level conversations with them and they 100% assure him that what the app says is the password is what he entered into it, so if the wallet isn't taking it you either changed it or something is wrong. The nephew has it too I have no idea how much his is worth, he has his password still and he told me he now uses it more than once a week just to make sure after his co worker got locked out.
It's the digital equivalent of losing a winning lottery ticket
people losing their keys is good for the currency. makes it more rare. Dude likely made a mistake. if you own a good amount of BTC, you should have the password in several locations and triple check it when copying it for accuracy. Especially knowing about these items.
I mean, they could choose to do that at whatever price. It did not do much to the price TBHUnless they announced this to get the price to drop across the board then buy enough to control.
We still have ZERO idea of how this reacts in a risk off environment... So this is a precarious time to be in the ole digital coinage. But this next eventual downturn will be able to help decipher it's true value.