#Bitcoin self-custody losses exceed $1.5 billion#
Hot Topic Overview
Overview
According to River's research analysis, Bitcoin losses due to poor self-custody management have surpassed those associated with exchanges, totaling approximately 1.6 million BTC (over $1.5 billion), exceeding the 1.2 million BTC (over $1.1 billion) lost in events like the Mt. Gox hack and FTX bankruptcy. The study, employing probabilistic modeling to analyze wallet activity, found that long-term (over 10 years) inactive wallets account for the majority of losses, while the probability of loss for short-term inactive wallets is lower.
Ace Hot Topic Analysis
Analysis
A study by River reveals that over $1.5 billion in Bitcoin has been lost due to mismanagement of self-custody, exceeding losses from exchange events. The research indicates that around 1.6 million Bitcoin are inaccessible, while exchange-related events such as the Mt. Gox hack and FTX bankruptcy resulted in the loss of 1.2 million Bitcoin. Researchers, through analysis of wallet activity, found that long-term (over 10 years) unused wallets account for the majority of losses, while short-term inactive wallets have a lower probability of loss. These findings suggest that while exchange events garner significant attention, losses resulting from poor self-custody management may be greater, highlighting the need for investors to exercise extreme caution when managing private keys.
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Public Sentiment
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Classic Views
Bitcoin self-custody losses exceed $1.5 billion, mainly due to long-term unused wallets caused by mismanagement.
The amount of Bitcoin lost to self-custody exceeds the amount lost in exchange events.
Long-term unused wallets are the main source of self-custody losses, while short-term inactive wallets have a lower probability of loss.
The amount of Bitcoin lost to self-custody exceeds the losses caused by the Mt. Gox hack and the FTX bankruptcy.