Understanding dormant wallets for beginners - page 2.

jrrsparkles

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Quote from: Felicity_Tide on May 11, 2024, 12:52:58 PM

Dormant wallets, also known as hibernated wallets, are considered to be wallets that have been inactive for a long period of time (usually at least six months). Wallets, especially those that hold Bitcoin, are often regarded as lost Bitcoin wallets due to their prolonged inactivity.

Usually the dormant term used for custodial wallets such as exchange and casino accounts, so if the platform consider the user is being inactive they can decide what they wanted to do with that funds which depends on their terms.

But 6 months is too short to consider the funds in the wallet to be considered as lost, any wallet that's holding millions worth of Bitcoin didn't move any coins in the years may consider but not entirely.

Coyster

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Life's but a walking shadow!

Because coins haven't moved out from an address for six months or longer does not mean the coins are lost. It is impossible to know if the coins in a particular address is lost, expect the owner tells you so and ~~signs a bitcoin message from the address~~.

Felicity_Tide

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Dormant wallets, also known as hibernated wallets, are considered to be wallets that have been inactive for a long period of time (usually at least six months). Wallets, especially those that hold Bitcoin, are often regarded as lost Bitcoin wallets due to their prolonged inactivity.

When it comes to lost Bitcoin, some of these wallets might never be accessed again due to various reasons, most of which are likely human caused or circumstance.

Quote

https://bitcointalksearch.org/topic/m.64063271
Possible Causes of Lost Bitcoin

Death of the holder
Transferring to the wrong network or address (though some wallet software can detect this and notify the sender before the button is hit)
Inability to remember memorized or find written seed phrases
Wallet compromise such as phishing hacks, etc.

Preventive Measures

The use of private hardware wallets (cold wallets) is strongly encouraged.
Seed phrases should never be memorized, nor written on a mobile device or computer. They can be written on paper or in a book that shouldn't be visible to external members and should be strongly protected.
Having a backup of your documented seed phrase is crucial in case of unplanned circumstances like a fire outbreak.

Note that the quoted text was a reference from my post that can as well be a guide to beginners.

Topic: Understanding dormant wallets for beginners - page 2. (Read 178 times)