#Bitcoin Self-Custody Losses Exceed $1.5 Billion#
Hot Topic Overview
Overview
In recent years, self-custody losses of Bitcoin have surpassed those related to exchanges, totaling approximately 1.6 million Bitcoin, worth over $1.5 billion. This is primarily attributed to many users not accessing their Bitcoin wallets for extended periods, leading to inaccessibility. In contrast, exchange-related events, such as the Mt. Gox hack and FTX bankruptcy, resulted in the loss of around 1.2 million Bitcoin, valued at over $1.1 billion. Research suggests that long-term inactive wallets are more prone to losses, while short-term inactive wallets have a lower probability of loss.
Ace Hot Topic Analysis
Analysis
Latest data shows that Bitcoin losses due to poor self-custody management have surpassed those associated with exchange-related events, totaling approximately 1.6 million BTC, worth over $1.5 billion. This figure exceeds the 1.2 million BTC lost in exchange events like the Mt. Gox hack and the FTX collapse. River's research analysis indicates 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 suggests that many users may have forgotten their private keys or lost access to their Bitcoin. The data also serves as a reminder that while self-custody offers greater security, it also requires users to assume more responsibility, ensuring proper safekeeping of private keys and preventing losses due to mismanagement.
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Public Sentiment
Discussion Word Cloud
Classic Views
Bitcoin self-custody losses have exceeded losses related to exchange events, totaling approximately 1.6 million BTC (valued at over $1.5 billion).
Long-term (10+ years) unused wallets are the primary source of Bitcoin self-custody losses, while short-term inactive wallets have a lower probability of loss.
Poor self-custody management is the primary cause of Bitcoin losses.
The scale of Bitcoin self-custody losses exceeds the losses triggered by the Mt. Gox hack and the FTX bankruptcy.