Topic: People losing their Bitcoin is not a risk to Bitcoin: - page 3. (Read 687 times)

There are people who just come online and run across some information; they read it just for entertainment purposes and to kill boredom. There are also people who just search for information online, get the answer to the questions they ask, and transfer it just the way they see it to another. There are also people who actually read, understand, and practice what they have learned. Those people are the ones who are really security-conscious.
 
Here is a Bitcoin community where people share useful information for it to be helpful to others. It's now left with the next person to treat the information as important as it should be or take it for granted and fall into the trap of making a mistake that could have been avoided if there was attention given.
 
This is just life. Only a few people practice what they preach, while others act strong while making careless mistakes. Just like someone who praises and supports bitcoin as a privacy coin and still moves their holdings to a centralized exchange where they need to pass KYC, where is the privacy right there?

For those who don't take security seriously, losing their coins because of that is more like doing the coin hood than harm, as they are contributing to a number that could have been in circulation, which serves as a donation to the growth of others.

When it comes to my security, I owe a lot of it to this forum. I try my best to put whatever I learn on the forum into practice because, at the end of the day, it's for my benefit. If something should happen to my phone or wallet and I become a victim of cybercrime one way or the other, I will be the one affected, not a member of the forum. It will even be worse for someone like me who knows what to do and doesn't do it.


That's one way to look at it. It won't be an issue when a handful of people lose their Bitcoin by forgetting the recovering phrase or something, but when so many people begin to lose their Bitcoin like that, it reduces the amount of Bitcoin in circulation, yes this increases the Bitcoin price but it can also be a disadvantage because Bitcoin supply is fixed.
About 6 million Bitcoins are lost, so imagine that number increased to 10 million.

There is no threat to the worth of bitcoin whenever someone loss their bitcoin because as the number of bitcoin reduces so the price directly goes up because everyone knows that price enhances when there happens decrease in supply. Although bitcoin has no disadvantage but people who lost their Bitcoin's key information will be definitely in disadvantages.

This case is astonished because everyone is struggling for getting money so how one can forget secrecy of his money because bitcoin is also a money. If someone is interested in getting profit then he will never forget his password or anything else related to bitcoin and will be serious about saving it in different places but an irresponsible person will not care about what happened to his money.

I have absolutely no issue with lost Bitcoin. That only means there is less Bitcoin in circulation and due to the deflationary nature of Bitcoin, that will only serve to strengthen the price of BTC. So I see this as a win for the rest of us Bitcoiners.

There is always many things you can do to avoid and prevent losing your Bitcoin wallet access.

Losing their keys is 100% their own fault. Bitcoin is about being your own bank, and people need to take that more seriously.

That is the risk, you have to be serious with your Bitcoin and its wallet, and Bitcoin can't be crucified for the fault of anyone. Those who are buying Bitcoin should learn about it to familiarize themselves with it and know the risks in both custodial and non-custodial wallets to know the best they can cope with between them. And if it's the self-custody arrangement you signed for, you should also know the dos and don'ts and no one should be dragged into the mistake and carelessness of another. The self-custodial arrangement is for a very good purpose, and in this, you own your coin and nobody can lay claims on it, ever. I see this as the best.

For the second part about Bitcoin gaining the opportunity of the lost access to wallets, I guess this is not the case. Despite that some whales hold Bitcoin and do not hide it, there are still many whales who own it but do not talk about it and still have their access intact. Yet, Bitcoin moved to about $15,000 late last year. But now, it has appreciated about x3. This reveals that there is persistent demand and supply, and it means that it's not about the lost access that Bitcoin is appreciating now but people pumping fresh capital into it at this season. Is that not simple enough?

Truly, Bitcoin holds the asset of some people who can't access it due to their fault but I must tell you that the percentage of those people is negligible and will have no serious effect in the market.

You made your point crystal clear and I agree with it, lost or abandoned BTC do increase the price of BTC because supply is being locked and it is permanent so supply is being cut down while the demand is increasing day by day therefore the price will increase ultimately. Your suggestion is practical but I don't see how it relates to your first paragraph context.

Like if a person thinks many members share impractical suggestion while the remaining ones shares practical ones, how this observation is related to your suggestion?

Overall, we should try to keep our private keys as safe as we can, and many people say the best way is to place them offline, like writing them on paper, and to save them from natural or artificial disasters, we should engraft them on some metal. I say that's not the best way. It's just not for me, maybe for another, it is but not for me. I had an idea that I had to test first then I will share it here by creating a new topic of how to keep your seed phrase safe on online places.

But who will assume that lost of Bitcoin due to carelessness of holder is a disadvantage to Bitcoin network while there’s tons of lost incidents even on fiat but these type of incidents never associated to fiat network itself but rather to owner itself.

Lost Bitcoin doesn’t increase the price of circulating supply of Bitcoin but rather it just reduce the potential of decreasing the price in the future since inactive Bitcoin is already relevant to circulating supply. The demand on Bitcoin is the one that gives more value to Bitcoin and not lost Bitcoin just because it stop being circulated.

If we pay attention, there are quite a lot of incidents such as BTC prices which vary greatly as they do now. What @Jawhead999 said is true and most of it is caused by human error and it is also very clear that in looking at it it is also from the point of view from which we will see it. This is why future BTC is so valuable because if we want to own it then we have to buy it from existing Bitcoin owners.

If someone considers house certificates, land and other valuable assets important, then why are they so careless with the private key which is the only access to the wallet where Bitcoin is stored in it. If they consider the certificate important, then the private key must also be stored in a much more secure place. Private keys cannot be duplicated, you must protect them better than other valuable asset certificates. Carelessness in saving your private key will result in you losing money because you won't be able to access the wallet where Bitcoin is stored in it.

On small scale, when people are lost their coins, it's a lose for them since their assets are decreased.

In big scale, when people are lost their coins, it probably gives a tiny effect to other holders since it makes Bitcoin scarcer. So it depends on which scale we're talk.

Of course when people lost their coins, AFAIK all of them are caused by human mistakes.

Not following security advice is not only careless, its also digital self-sabotage! We often dont realize how important strong security is until we've lost Bitcoins and are sad about it. The harsh truth is that once you lose your secret keys, you cant get your Bitcoins back. Its not just about a personal loss; its also a stark warning of how harsh blockchain technology can be.

Now think about this: every Bitcoin that is lost accidentally makes the ones that are still in circulation more valuable. Isnt that ironic? Still, lets not make the problem seem small. Its a terrible cash blow for the person. We need to stress over and over again how important security is to our city. Its not just a theory; its a real-life must. It affects how much money you have online. Its clear what the message is: protect your Bitcoins like your future rests on it, because it does.

Bitcoin is in my opinion 99% of practical and 1% theory, every bitcoin informations we learn from the forum or any other platform are practical experiences of bitcoin users so if anyone is taking them for granted it's to ones disadvantage. Let drop one or two instances to consider:

1. Wallet hack and phishing prevention: when we learn about preventive measures to consider in protecting our bitcoin wallet from been hacked and against potential bug vulnerability we put what we learn to application because having your wallet hacked with your funds stolen isn't a theory. Maybe such people should wait till it happens to them.

2. Trading and investment: Does crypto trading sounds theoretical, maybe they should give it a try and experience the theory that's there in losing money. Etc.

People need to be careful in handling their private keys the importance of your private keys is equivalent to that of your funds as it's the only means to ownership of funds in a non-custodial wallet and should never be taking for grant in terms of it's security/safe-keeping.

At the moment a loss of private keys is a total loss of funds and there's no way for recovering it maybe in the future as technology develops developers might create a tech that can be use to brute-force into wallet with lost keys and gain access to funds.

Here we share real life experiences in form of suggestions and advice, so as a newbie you should consider the suggestions that is provided by more experienced member here in the forum. We know that it’s really hard to buy Bitcoins with your hard earned money, hence here all give appropriate suggestions to secure these precious bitcoins more securely. Use open source wallets, avoid using online wallets and exchanges to store the coins. Follow atleast this, and you will be safe from online attacks for the coins.

Helping others to secure their bitcoins is praiseworthy work that most of the users have been doing all this time when someone asks about it or wants to learn to prevent others from scamming them. But when others are lazy enough to take this initiative before investing or holding some bitcoins, it's not anybody else fault but him/her because they didn't bother to learn one of the important things about having bitcoins and that is how to secure and prevent themselves from getting fooled to send it to the scammers and hackers.

Burning Bitcoins or stored Bitcoins in practically lost wallets can be a hidden gem for Bitcoin's price. With a lower circulating supply and a growing demand year after year, the dynamics are set for something remarkable.

Imagine a decade or two from now when people proudly share stories of acquiring Bitcoin at five figures, reminiscing about the golden age of crypto.

Bitcoin has transferred ownership from being in the hands of a third party, such as banks, who control your money, and after their approval, you can buy and sell to a trusted party, which is the Bitcoin network, so you need the private key to access your currencies. Your failure to maintain that key means losing your money, and then increasing the value of Bitcoin will mean nothing to you. The price increase is not only related to a decrease in supply, but also to an increase in demand.

I agree with the op's reasoning. When some BTC becomes unavailable because of locking oneself out of the wallet, it's the person who is locked out who suffers from it. Bitcoin become more scarce, so it can have a positive impact on the price if the demand remains the same, but the supply goes down this way.
Some might argue that lower circulating supply is bad for Bitcoin as well because the supply is already quite low, and a decrease makes it even less practical for global adoption. But I don't think it's a valid concern because Bitcoin is highly divisible into sats and because adoption is very far from a rate where it could become a problem.

and some of them aren't really aware or care about bitcoin back in the days when they acquire the coins ,
there is a officemate of mine that had been paid with bitcoin many years back and since that is the only option His client gave him
then he accept the coin for the sake of His work , and then forget about it till 2017 when the Bull happens and he have heard about bitcoin again
and that's what happened that he have not saved His key so sorry for him losing 10 bitcoins .

Self-custody is important to ensure access to your coins, but it is also not something that beginners can deal with easily, many are used to having someone or something to take care of their assets, it is more a matter of adapting to a new thing and get used to storing your things responsibly

Bitcoin is Bitcoin, is itself and it is not the same as people who have bitcoin and lose bitcoin, bitcoin holders or owners. They are very different things and can not be considered the same in any context.

People who lost bitcoin are not risk factors for Bitcoin and Bitcoin network. I don't understand if anyone consider those people are risky for Bitcoin and its network.

They lost their bitcoins is actually good news and gifts, donations for other Bitcoin holders who don't lose bitcoins. Because total supply will be smaller than 21 million and with same demand, less supply as a principle of supply and demand, price will be higher.