#Bitcoin Self-Custody Losses Exceed $1.5 Billion#

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In recent years, self-custody losses of Bitcoin have surpassed exchange-related incidents, totaling approximately 1.6 million Bitcoin, worth over $1.5 billion. This figure surpasses the 1.2 million Bitcoin lost in events like the Mt. Gox hack and FTX bankruptcy. Studies suggest that long-dormant wallets are the primary source of these losses, while short-term inactive wallets have a lower probability of losses. This indicates that users need to pay extra attention to security management when safeguarding Bitcoin, avoiding financial losses due to operational errors or security vulnerabilities.

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According to River's research analysis, Bitcoin losses due to mismanagement of self-custody have surpassed those related to exchange events, totaling approximately 1.6 million BTC, worth over $1.5 billion. This figure exceeds the 1.2 million BTC lost in exchange events such as the Mt. Gox hack and FTX bankruptcy. The research utilizes probabilistic models to analyze wallet activity, revealing that long-term (over 10 years) unused wallets account for the majority of losses, while short-term inactive wallets have a lower loss probability. This implies that many users may have forgotten their private keys or lost the devices storing them, rendering them unable to access their Bitcoin. This data also suggests that while self-custody can provide higher security, users need to manage their private keys prudently to avoid losses due to negligence.

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Bitcoin self-custody losses exceed $1.5 billion, primarily due to long-term unused wallets resulting from mismanagement.

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The amount of bitcoin lost to self-custody exceeds the amount lost to exchanges, indicating that self-custody carries greater risks.

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Long-term unused wallets are the primary source of bitcoin losses in self-custody, while short-term inactive wallets have a lower probability of loss.

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The amount of bitcoin lost to self-custody exceeds the losses caused by the Mt. Gox hack and FTX bankruptcy, indicating that self-custody risks should not be overlooked.

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