October 29, 2020

Why is 28% of issued BTC already lost forever?

Why is 28% of issued BTC already lost forever?

According to experts of the analytical agency, the present number of bitcoins in circulation will be significant less than the planned volume of emission.

Analyst agency Cane Island Digital Research published the results of the study, according to which, the total number of bitcoins in circulation will beIn particular, analysts have come to the conclusion that about 4% of bitcoin's blockchain is lost annually.total assets available.

At the same time, for the first time since May 2020, irrevocablelosses of bitcoin exceed the rate of production of new coins. This dramatic change is mainly due to the May halving, which reduced the miner reward from 12.5 BTC to 6.25 BTC per block.

“According to our estimates, since 2010, every yearabout 4% of the available supply of bitcoins is lost. Thus, the current available supply will be about 13.9 million coins, which is much lower than the expected total supply of 18.3 million ", - reported in the report.

Lack of control

According to Cane Island Digital Research, about 28% of all bitcoins are lost forever. The agency considers the following cases when the user:

  • Accidentally drops a hardware wallet;
  • Loses keys to a digital wallet;
  • Sends assets to a non-existent / invalid address;
  • Dies without agreeing to hand over the keys to another person.

Russian lawmakers have already tried to resolveone of the problems of irrecoverable loss of cryptocurrencies by legalizing the transfer of virtual assets by inheritance. However, the very process of donating cryptocurrencies remains prohibited. A similar scheme for legalizing cryptocurrencies is also observed in China.


Analysts at Cane Island Digital Research believe that bitcoin has already reached the peak of the maximum available volume and will decline from that moment:

“The meme about“ there will never be more than 21 million bitcoins ”is only partially correct. In truth, there will never be more than 14 million bitcoins available. "

The situation is further complicated by the fact that, according to estimatesexchange ZUBR, by 2028 the demand for bitcoins will significantly exceed supply. ZUBR notes that by the end of this decade, there will be a significant change in the balance between supply and demand, when the emission of bitcoin will decrease even more, and retail addresses will continue to absorb more and more offers.

The price of bitcoin BTC / USDT at the time of writing is $ 10,965.


Why is 28% of issued BTC already lost forever?


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