Bitcoin

BigRedRage

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I mentioned this before it's another reason bitcoin scares me, and I admit it's largely I just don't understand it


https://www.businessinsider.com/bitcoin-owners-without-wallet-password-watch-prices-rise-2021-1

"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.
 

BigRedRage

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I paperhanded half my dogecoin at $.28 because it didnt seem sustainable. oops.
 

Russ Smith

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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.


Oh I know that I think one of the articles I linked actually says one of the oddities of Bitcoin is people losing keys to it actually makes it more valuable.

In this case the programmer is convinced he has the password and his device just won't take it. there's been mention of him even considering suing them but he went to them for help cracking it and their conclusion was near as they can tell their device is working correctly, if it's not taking his password it's because the password is incorrect.

We had a mini version of this at a prior employer we had a fancy digital safe that's required for storing government documents. They changed the policy so that you had to change the password frequently, I think it was every 6 months. My boss did it one time and the next time he went to use it, he couldn't open it. Either he'd written the password down incorrectly or he'd entered it incorrectly we didn't know. In the end he guessed passwords close to it and lucked out I think 3rd guess worked. After he got in we had to send the device to the manufacturer to be serviced just in case it was a malfunction of the safe not him entering the wrong code. This was documentation vital to the company inside but not 440 million worth. We realized then the downside to such a secure device, if you can't get in you're screwed.

I realize it's not the fault of Bitcoin but the reason people go to the lengths he went to in trying to secure their bitcoin is they're afraid of someone hacking and stealing it. But it's created a side business there are apparently multiple companies who try and hack your password for you if you forget it and are unable to get to your bitcoin.
 

BigRedRage

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This is where my bitcoins will go into a hard wallet flash drive hidden for safe keeping, not in a digital drive.
 

Folster

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Pretty big news with China banning all crypto transactions. I'm surprised Bitcoin did not fall much further.

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BigRedRage

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A concern of mine about crypto is governments like China buying a **** ton and controlling the currency. I like this news.
 

Dback Jon

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A concern of mine about crypto is governments like China buying a **** ton and controlling the currency. I like this news.
Unless they announced this to get the price to drop across the board then buy enough to control.
 

BigRedRage

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Unless they announced this to get the price to drop across the board then buy enough to control.
I mean, they could choose to do that at whatever price. It did not do much to the price TBH

I bet you the US already has a significant holding in BTC.

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Folster

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I'm not sure. China has been cracking down on extreme wealth/profit and they fear that the decentralized nature of Bitcoin will lead to greater wealth disparity, hiding of wealth, and loss of control of their monetary policy. I always thought crypto would have problems once it became a threat to centralized banks and its no surprise that the most authoritarian world power sees crypto as a threat to their total power.
 

dscher

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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.
 

Folster

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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.

Whatever happens you can be assured crypto bulls will claim it's good for crypto.
 
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