#Bitcoin self-custody losses exceed $1.5 billion#
Hot Topic Overview
Overview
Recent research by River indicates that Bitcoin losses due to poor self-custody management 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 due to the Mt. Gox hack and FTX bankruptcy. The research analysis found that long-term (over 10 years) unused wallets account for the majority of losses, while short-term inactive wallets have a lower probability of loss. This implies that users need to be extremely cautious when safeguarding their Bitcoin, avoiding losses due to poor management.
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 research discovered that approximately 1.6 million Bitcoin are inaccessible due to self-custody, compared to 1.2 million Bitcoin lost in exchange events such as the Mt. Gox hack and FTX bankruptcy. The researchers analyzed wallet activity through a probabilistic model and found that long-term (10+ years) unused wallets account for the majority of the losses, while short-term inactive wallets have a lower probability of loss. This finding underscores the risks of self-custodying Bitcoin, suggesting that even with the prevalence of exchange events, self-custody can lead to greater losses.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Bitcoin
self-custody
loss
has
exceeded
exchange-related
events
with
a
total
of
approximately
1.6
million
BTC
(worth
over
$1.5
billion)
Long-term
(10+
years)
unused
wallets
account
for
the
majority
of
the
loss
while
short-term
inactive
wallets
have
a
lower
probability
of
loss
Poor
self-custody
management
is
the
main
reason
for
Bitcoin
loss
The
amount
of
Bitcoin
lost
through
self-custody
exceeds
the
amount
lost
on
exchanges