Hundreds and thousands of bitcoins are lost every year for various reasons: user errors, hacks, mistransfers and forgotten keys.
It is estimated that between 17% and 23% of all bitcoins could be lost forever. This means that up to 3.79 million of the 21 million bitcoins will never be accessible again.
How can you lose your bitcoins?
- Private key compromise: attackers can steal bitcoins through hacking or phishing.
- Incorrect transfers: sending funds to the wrong address.
- Damaged wallets: loss of access due to hardware malfunctions or forgotten keys.
- Inheritance issues: a bitcoin owner may pass away without leaving instructions on how to access the wallets.
Losing bitcoins is certainly a tragedy for the individual user, but each lost coin increases the value of the remaining bitcoins in circulation, making them more scarce.
Is it possible to recover lost bitcoins?
Bitcoin does not provide a password reset and access recovery option like a bank. However, it is sometimes possible to regain access to lost bitcoins through data recovery services or law enforcement in the case of theft.
It is best to strengthen the security of your funds to avoid losses. Use hardware wallets, back up your keys, and follow basic security rules.
