#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 related to exchanges, totaling approximately 1.6 million BTC (over $1.5 billion), exceeding the 1.2 million BTC (over $1.1 billion) lost in the Mt. Gox hack and FTX bankruptcy. The study found that long-term (10+ years) inactive wallets account for the majority of losses, while short-term inactive wallets have a lower loss probability. This implies that users need to pay extra attention to security management when self-custodying Bitcoin, to avoid losing funds due to operational errors or unexpected circumstances.
Ace Hot Topic Analysis
Analysis
A study by River found that over $1.5 billion worth of Bitcoin has been lost due to poor self-custody management, exceeding the amount lost in exchange-related events. The researchers estimate that approximately 1.6 million Bitcoin are inaccessible, compared to 1.2 million Bitcoin lost in exchange events such as the Mt. Gox hack and FTX bankruptcy. The study employed a probabilistic model to analyze wallet activity, revealing that long-term (10+ years) unused wallets account for the majority of losses, while short-term inactive wallets have a lower probability of loss. This suggests that many Bitcoin holders may have forgotten their private keys or lost access to their wallets, leading to the permanent loss of these digital assets. The findings highlight the risks associated with self-custody and emphasize the importance of securely storing private keys and backing up wallets.
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Public Sentiment
Discussion Word Cloud
Classic Views
Bitcoin self-custody losses have surpassed exchange-related events, totaling approximately 1.6 million BTC (worth over $1.5 billion).
Long-term (10+ years) unused wallets account for the majority of losses, while short-term inactive wallets have a lower probability of loss.
The amount of Bitcoin lost through self-custody exceeds the amount lost on exchanges.
Poor self-custody management is the primary cause of Bitcoin losses.