There are only 21 million Bitcoin coins to begin with and losing a couple million of those can feel like a waste.
If it is your currency, the thought is frightening. Bitcoins are not cheap, and losing any can definitely put someone back.
So how do Bitcoins get lost? What happens when they are lost? And what steps can you take to prevent that from happening to you?
How to Tell When Bitcoins Are Lost?
It is very hard to tell when a lot of Bitcoins become lost. A majority of lost Bitcoins come from people misplacing their crypto keys. However, it can be hard to determine which Bitcoins are simply not being used for a while or are not being used due to misplaced keys.
There is an estimate that roughly 4% of available bitcoin is lost each year. That means that even though there should be 21 million Bitcoins available, there will likely only ever be 14 million circulating at maximum.
How do Bitcoins Become Lost?
Hacked and Stolen Bitcoins
There are a few ways Bitcoins can become lost. As with any online platform or program, your cryptocurrency wallets can be hacked. There are steps you can take to avoid this, but the risk is still there. Theft and hacking are some of the ways the cryptocurrency can be lost.
Not only can your wallet or the platform be hacked, but so can your computer. Fishy emails, fake documents, and shady websites can all impart viruses onto your computer. Items can also be plugged into your computer via USB ports, so make sure you trust what you are downloading or plugging into your computer.
Even public WiFi can be dangerous. This is one of the reasons you should never use the public internet to log into your bank or crypto wallet. Someone can track information on your computer by hacking into the internet that you are both using and track your passwords and log-in information.
Mistakes During Transactions
Another way is from mistaken transactions. If you accidentally send your Bitcoins to someone, you can easily lose them if the other party isn’t honest. Always double-check any transactions before finalizing an exchange.
Most wallets will prevent you from sending Bitcoin to an address that doesn’t exist. However, that doesn’t mean you can’t send money to the wrong address that does exist. Phishing scams are also very common when it comes to Bitcoin. Before sending any cryptocurrency to anyone, make sure the address is correct and the person is someone you should be sending money to.
Phishers will pretend to be a friend or family member, or ask you to send money as a security fee or because you forgot to pay a bill. It happens the same way with Bitcoin that it does with regular banks. Once the money is out of your wallet, it is almost impossible to ever get it back.
Lost Private Keys
Finally, the most common way Bitcoin is lost is due to the loss of the private keys that give you access. Some people don’t trust online wallets and will attempt to keep all of their keys physically written down. It is known as a paper wallet by a lot of people using Bitcoin and it is considered one of the worst ways to keep track of information.
Unlike passwords, there is little to no way to recover your private keys once they are lost. The private keys are the only way to verify what currency you own. So when you lose the key, no one can verify the money is yours.
While paper may seem like the safest option, if something happens to your note, it is gone. For example, if someone spills water on the paper and it bleeds out, or a fire or it gets lost during a move, it is gone forever.
Using offline wallets is your best option. But as these are very similar to thumb drives, they can still be lost. One man even lost all of his cryptocurrency as he lost the whole hard drive the information was stored on and didn’t keep proper backups. As you can see, keeping track of those private keys is the most important step in preventing lost Bitcoin.
Is There a Way to Recover Lost Bitcoins?
There is not any way to recover lost bitcoins. Without access to a private key, those misplaced coins are gone for good. If someone has stolen your key, there is no way to regain your Bitcoins, as they are now officially theirs.
Sometimes, Bitcoins are lost due to an incorrect transaction. If it is sent to someone you know well, such as friends or family, they may be willing to return the Bitcoins for you. However, if that isn’t the case, then you are likely to not get it back.
How Do I Prevent Bitcoins From Being Lost?
To prevent the loss of your Bitcoins, it is important to make sure your wallet is always protected. This means backing it up and encrypting it. Keeping your private keys away from where they can easily be hacked is also important. Where possible, enable two-factor authentication on any account to increase security measures.
Consider investing in a cold (offline) wallet. Having a wallet will give you an easy place to store all of your private keys. These private keys are what enable you to access your cryptocurrency. If you ever lose these keys, there is no way to get them back. This is how most Bitcoins and other cryptocurrencies get lost. Keeping track of your keys is very important. Hot wallets can be hacked, so they may not be a good place to store your keys unless you have less than $1000 in a cryptocurrency.
What is Mining City?
Mining City is a platform that provides mining plans, giving users access to hash power and mining rewards. The idea for the platform was conceived in October 2019 by Greg Rogowski, the brand owner of Mining City and the CEO of Prophetek.
Prophetek is the company behind the Mining City platform. It is based in Cyprus, a country with clear and consistent cryptocurrency regulations.
A technological process, combining low electricity costs with storage and miner improvements, known as “Smart Mining,” became an effective way to obtain BTC.
Is Mining City Legit?
Mining City provides real hash power for users. Mining City also leaves banned markets and takes a compliant approach to new laws and regulations, adjusting to global markets.
There have been many widespread scams and attempts to defraud cryptocurrency customers over the past several years, which has prompted increased regulation and efforts by responsible companies to deter fraudulent activities and scams.
The cryptocurrency and crypto mining industries are new and gradually they become more and more regulated markets. As new regulations go into effect, reputable market players, like Mining City adjust. This may mean leaving markets where crypto-related activities face new bans. That may also mean having to adjust products or services to stay in line with new laws.
You can follow Mining City’s official social media portals on Facebook, Instagram, Telegram, YouTube, and Twitter to observe what Mining City undertakes to adjust to new regulations and requirements and to give Mining City your support in their efforts to become fully compliant.