Go read this NYT story about losing $220 million in bitcoin


Go read this NYT story about losing $220 million in bitcoin

There aren’t lots of excellent ways to lose $220 million, but this New York Times article highlights a particularly egregious one– losing millions of dollars in bitcoin because you forgot the password to your digital wallet.

Stefan Thomas’ 7,002 bitcoin (worth roughly $220 million) are locked away in an IronKey hard disk drive, according to NYT‘s Nathaniel Popper. The issue is he can’t keep in mind the password, and he’s just two failed password efforts more detailed to losing them permanently due to IronKey’s stringent security procedures. There is the possibility of paying somebody to break the drive, however Thomas would have to have the time and money to make that take place.

It’s a darkly comedic situation, and Popper’s story strikes all of the cryptocurrency classics to help explain it. There’s reference of the volatile nature of bitcoin’s worth and the currency’s strange developer, however what the short article makes terribly clear is how common losing bitcoin really is.

Two other people get singled out in Thomas’ story of trouble, but it’s a surprisingly typical tale. Of the 18.5 million bitcoin currently around, approximately 20 percent (around $140 billion) are lost in inaccessible wallets, Popper writes.

There have actually been other high-value wallets locked out in the past, with contents ranging from $30,000 to $300,000, however Thomas’ story is a reminder of how consistent this issue is amongst bitcoin users and how expensive it has become. The protected and decentralized nature of bitcoin is terrific– up until it clashes with easy human forgetfulness.

You can read the whole story here and appreciate simply how much schadenfreude bitcoin continues to generate.


( the heading, this story has not been released by Essential India News staff and is published from a syndicated feed.).


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