#Bitcoin Self-Custody Losses Exceed $1.5 Billion#
Hot Topic Overview
Overview
Recently, there has been growing concern over the losses associated with self-custody of Bitcoin. According to research by River, the amount of Bitcoin lost due to mismanagement of self-custody has surpassed losses related to exchange incidents, totaling around 1.6 million BTC, worth over $1.5 billion. This figure surpasses the 1.2 million BTC lost in events like the Mt. Gox hack and the FTX bankruptcy. The research found that long-dormant wallets account for the majority of these losses, while short-term inactive wallets have a lower probability of loss. This suggests that users engaged in Bitcoin self-custody need to prioritize secure management practices to prevent asset losses stemming from mismanagement.
Ace Hot Topic Analysis
Analysis
Bitcoin self-custody losses exceed $1.5 billion, surpassing losses from exchange-related incidents. Research by River analyzes that approximately 1.6 million bitcoins are inaccessible due to mismanagement of self-custody, whereas exchange incidents such as the Mt. Gox hack and FTX bankruptcy have resulted in the loss of 1.2 million bitcoins. The research employs a probabilistic model to analyze wallet activity, revealing that long-term (over 10 years) inactive wallets constitute the primary source of losses, while short-term inactive wallets have a lower probability of loss. This implies that users should prioritize security management when holding bitcoins for extended periods, mitigating the risk of losing access to funds due to lost private keys, hardware failures, or other factors.
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Public Sentiment
Discussion Word Cloud
Classic Views
Bitcoin self-custody losses exceed exchange-related events, totaling approximately 1.6 million BTC, worth over $1.5 billion.
Self-custody losses primarily come from long-term (over 10 years) unused wallets, while short-term inactive wallets have a lower loss probability.
Poor self-custody management is the main reason for Bitcoin losses.
Bitcoin lost in exchange-related events such as the Mt. Gox hack and FTX bankruptcy totaled 1.2 million coins.