#Bitcoin Self-Custody Losses Exceed Exchange Events#
Hot Topic Overview
Overview
Recent research by River suggests that Bitcoin losses due to poor self-custody management have surpassed those related to exchange events, totaling around 1.6 million BTC, worth over $1.5 billion. This is compared to 1.2 million BTC lost in exchange events such as the Mt. Gox hack and FTX bankruptcy. The research 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. This means that while exchange events garner widespread attention, the risks associated with self-custody should not be overlooked. Users need to carefully safeguard their private keys to prevent losses due to mismanagement.
Ace Hot Topic Analysis
Analysis
A study conducted by River reveals that bitcoin losses due to poor self-custody management have surpassed those related to exchange events, totaling approximately 1.6 million bitcoin (over $1.5 billion), exceeding the 1.2 million bitcoin (over $1.1 billion) lost in the Mt. Gox hack and FTX bankruptcy. The study, which employs a probabilistic model to analyze wallet activity, finds that long-term (over 10 years) unused wallets account for the majority of the losses, while short-term inactive wallets have a lower probability of loss. This suggests that many users may have forgotten their private keys or lost the devices storing them, rendering their bitcoin inaccessible. This finding underscores the risks associated with self-custodying bitcoin, urging users to take measures to ensure the safekeeping of their private keys and prevent losses due to mismanagement.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Bitcoin
losses
due
to
poor
self-custody
management
have
surpassed
those
related
to
exchanges
Approximately
1.6
million
Bitcoin
are
inaccessible
due
to
poor
self-custody
management
Wallets
that
have
been
inactive
for
a
long
period
(10
years
or
more)
account
for
the
majority
of
losses
The
probability
of
losses
from
short-term
inactive
wallets
is
lower