#Bitcoin self-custody losses exceed $1.5 billion#
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Overview
According to River's research analysis, Bitcoin losses due to poor self-custody management have surpassed those related to exchange incidents, totaling approximately 1.6 million BTC, worth over $1.5 billion, exceeding the 1.2 million BTC lost in the Mt. Gox hack and FTX bankruptcy. The research found 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 implies that users need to pay extra attention to security management when self-custodying Bitcoin, to avoid asset losses due to operational errors or unforeseen circumstances.
Ace Hot Topic Analysis
Analysis
According to River's research analysis, losses from self-custody mismanagement have surpassed those related to exchange events, 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 research employed a probabilistic model to analyze wallet activity, revealing that long-term (over 10 years) inactive wallets constitute the majority of losses, while short-term inactive wallets have a lower probability of loss. This signifies the importance of users meticulously safeguarding their private keys and performing regular backups when engaging in self-custody of Bitcoin, preventing inaccessibility to their funds due to lost or damaged keys. Furthermore, users should recognize that long-inactive wallets are more susceptible to loss risk, prompting the recommendation of periodic wallet status checks and timely backups.
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Public Sentiment
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Classic Views
Bitcoin self-custody losses exceed exchange-related events, totaling approximately 1.6 million BTC (over $1.5 billion in value).
Long-term (10+ years) unused wallets account for the majority of losses, while short-term inactive wallets have a lower probability of loss.
Poor self-custody management is the main reason for Bitcoin losses, including private key loss, hardware failure, software vulnerabilities, etc.
Exchange-related events, such as hacks and bankruptcies, are also a significant source of Bitcoin losses.