Huge wealth of Bitcoin is lost every day

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According to cryptocurrency analyst Timothy Peterson, more Bitcoin is lost each day than is produced, and there may only be 14 million BTC in circulation.

Cryptocurrency analyst Timothy Peterson claimed in his analysis recently that about 900 BTC was produced per day after the halving, but about 1500 BTC was lost forever. Hence, the Bitcoin supply is actually shrinking and not growing.

Only 14 million Bitcoins

In a Twitter post, Peterson also shared a link to his research notes, which included an article titled “There Will Never Be More Than 14 Million Bitcoins.”

As can be understood from the title, the research article answers the question of how many Bitcoins were lost by stating the real numbers and why individuals lost their BTC. According to Peterson, Bitcoins are often lost in the following ways:

Accidental loss of hardware, disposal etc.
Complete loss of private keys
Death of the bitcoin owner

Posting to an address that has a lot of Bitcoins and has been dormant for a long time in hopes of sending to the wrong address or rewarding. According to Peterson, some hope that by donating small amounts of BTC to an inactive whale address, the owner will one day reward them with a good refund. Peterson likens this to a wish pool.

The fact that only 21 million Bitcoins can be produced is enough to understand that Bitcoin is a very scarce asset. Peterson goes further, pointing out that only 14 million BTC will be in circulation due to millions of losses. When talking about the supply of Bitcoin, it may be more correct to talk about 14-15 million numbers rather than 21 million.

See Also
“Defi Projects are More Risky than Ponzi Programs”

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