Evasive “lost” bitcoin: understanding of the concept
As the market continues to fluctuate in recent years, many investors have impressed the concept of lost bitcoin. Is the question of everyone’s thoughts how much of this cryptocurrency was “lost” and the consequences of its value?
To answer these questions, dive into the world of private keys and their role in ensuring Bitcoin transactions.
What is the private key?
The private key is a unique string used to sign digital signatures and activate transactions on the Ethereum blockchain. Like passwords, private keys are essential for accessing and using Bitcoin, but it is extremely difficult to figure out or know with prohibited tools.
How many private keys are there?
Estimating the number of existing private keys is a complex task. However, according to various sources, including estimates of renowned researchers and cryptocurrency analysis companies, there are about 6-8 million possible private keys. To put this number in perspective, imagine -solve the mathematical equation with more than 1.2 sextill factors (a sextillion 10^21). This is a huge challenge, even for the most advanced computers.
How many of these private keys are you lost?
Although we cannot offer precise numbers, we can make some qualified estimates based on the available data and research. The 2015 study published in the Journal of Cryptology estimates that up to 75% of the private keys have been lost or stolen over time. Another study by researcher Vitalik Butterin in 2020 suggested that only about 1-2% of the private keys remain.
For an additional breakdown, here is an approximate estimate of the number of private keys lost each year:
- Assuming that the average annual interest rate is 10-20% (reasonable estimation of security threats and theft), we must lose about 50-100 million private keys a year.
- In 5 years, this is about 250-500 million lost private keys.
Real consequences
Although the numbers are shocking, it is essential not to forget that these estimates are based on hypothetical scenarios. In reality, there are millions of active users throughout the world and many store their private keys with renowned wallets.
However, the fact that these private keys were lost due to theft, hacking or other security violations. As a result, some people cannot be accessed to Bitcoin bases.
Conclusion
The concept of “lost” bitcoin is interesting and disturbing. Although we cannot provide accurate data on the number of lost private keys, it is safe to say that a significant part of them are endangered over time. Understanding these numbers can help you better evaluate the importance of safe storage practices when using this valuable cryptocurrency.
Meanwhile, always be careful when sharing private keys online and consider implementing robust security measures, such as authentication in two directions, to protect Bitcoin devices.