Author Topic: Cryptocurrency and Economic Importance  (Read 2962 times)

Cameron

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Re: Cryptocurrency and Economic Importance
« Reply #20 on: December 13, 2017, 05:00:20 PM »
There are currently something like 16.7 million bitcoin in circulation, and a decent percentage of those bitcoins have been lost permanently (estimated to be roughly 25% or something like that). So the effective market cap of bitcoin is lower than you would think, and prices need to go up even higher before you can have a huge loss of wealth.

Even the high estimate is under 25%.

http://fortune.com/2017/11/25/lost-bitcoins/

"3.79 million bitcoins are already gone for good based on a high estimate—and 2.78 million based on a low one. Those numbers imply 17% to 23% of existing bitcoins"

AND:

"both estimates make a critical assumption that coins belonging to bitcoin’s inventor, Satoshi, are gone for good"

Take Satoshi's coins out of the estimates and you get 2.75M to 1.73M lost coins or 10% to 16%

And these estimates are considering a large amount of coins which haven't moved in a while to be lost (30-50%), no one really knows which are lost and which are simply being held.

Stupid question - how can bitcoins get lost, just by losing the digital keys?

yes, if you lose your flash drive, but I think you can recover your wallet if you remember your key.


rkbabang

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Re: Cryptocurrency and Economic Importance
« Reply #21 on: December 13, 2017, 06:01:23 PM »
There are currently something like 16.7 million bitcoin in circulation, and a decent percentage of those bitcoins have been lost permanently (estimated to be roughly 25% or something like that). So the effective market cap of bitcoin is lower than you would think, and prices need to go up even higher before you can have a huge loss of wealth.

Even the high estimate is under 25%.

http://fortune.com/2017/11/25/lost-bitcoins/

"3.79 million bitcoins are already gone for good based on a high estimate—and 2.78 million based on a low one. Those numbers imply 17% to 23% of existing bitcoins"

AND:

"both estimates make a critical assumption that coins belonging to bitcoin’s inventor, Satoshi, are gone for good"

Take Satoshi's coins out of the estimates and you get 2.75M to 1.73M lost coins or 10% to 16%

And these estimates are considering a large amount of coins which haven't moved in a while to be lost (30-50%), no one really knows which are lost and which are simply being held.

Stupid question - how can bitcoins get lost, just by losing the digital keys?

yes, if you lose your flash drive, but I think you can recover your wallet if you remember your key.

Yes the only way to access a wallet is to know the private key. And it is a long hexadecimal number which is pretty much impossible to memorize.  Most modern HD wallets derive the keys from a hash of 12 words which can be memorized, but that didn’t exist back when the first wallets were created by Satashi.  There is no way he has his key memorized. It has to be saved electronically or printed on paper.  If it is lost, then it is lost forever.
« Last Edit: December 13, 2017, 06:07:07 PM by rkbabang »