13 July 2023
Welcome, and thank you for being part of the MyZucoins community! Dive into some important crypto, finance and tech news to stay ahead.
This continues our recent part 1 on crypto wallets and safety. We recommend reading that first.
Back to the question—It's actually hard to answer.
Many media outlets, including the New York Times, covered this during the Covid-19 pandemic lockdowns in their article "Lost Passwords Lock Millionaires Out of Their Bitcoin Fortunes—Bitcoin owners are getting rich because the cryptocurrency has soared. But what happens when you can’t tap that wealth because you forgot the password to your digital wallet?"
"Of the existing 18.5 million Bitcoin, around 20 percent, or 3.7 million Bitcoin—currently worth around $113 billion (as of 13 July 2023), appear to be in lost or otherwise stranded wallets, according to the cryptocurrency data firm Chainalysis." Read more here.
While there is no doubt enormous amounts of cryptocurrencies have been lost over the years, pinning down a half-decent estimate is really hard. Most estimates use metrics based on factors such as these: “Mined Bitcoins that have not moved in over ten years are considered permanently lost by many analytics companies when estimating the number of lost Bitcoin.“
However, just because someone hasn't moved coins from a wallet, of course, doesn't mean they are lost.
For example, Bitcoin's anonymous creator, Satoshi Nakamoto's coins haven't moved for over 10 years in their wallets, so they are often included in these "lost Bitcoin" stats.
Of course, there's another counterpoint here.
There will be some percentage of those early, tech-focused adopters who held Bitcoin for such a long time they didn't need to sell many Bitcoins. As the coin price rose over the past decade, fewer and fewer coins needed to be sold to fund their lifestyles. Perhaps they stored a sizeable chunk of Bitcoin in other "everyday" wallets. This way, the bulk of their coins in those other wallets remained untouched. While these Bitcoin still remain in seemingly dormant wallets, they could easily be used as long-term storage wallets.
Another great point to investigate in a future newsletter is: How many cryptocurrencies have been sent to the wrong wallet address? Or wrong bank accounts for this matter? No doubt these are large numbers too that are underreported.
The main point is that many, many people have lost their cryptocurrency wallets and even though the real numbers are hard to nail down, backing up is key. Let's get into it below.
To protect your Zucoin wallet and ensure the security of your private and public keys, follow these instructions for backing up your Zucoins wallet app and restoring it if needed:
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All the best,
Rob & Peter
MyZucoins
Disclaimer: Of course, this is not advice, financial or otherwise. It’s also important to consider the risks and challenges associated with any potential benefits.
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