Bitcoin wallets are stuck with $140 billion because of forgotten passwords

Bitcoin wallets are stuck with $140 billion because of forgotten passwords

About $140 billion is stuck in bitcoin accounts because their owners forgot their passwords, The New York Times reported, citing data from Chainalysis. That’s nearly 20 percent of all cryptocurrency volume.

Password problems are due to the fact that cryptocurrency technology software has a complex algorithm for creating a login and associated password. The data is known only to the owner of the e-wallet. This allows you to create a bitcoin wallet without going through identity verification and registration in financial institutions. At the same time, it is impossible to restore or reset the password.

Due to the rise in price of cryptocurrency, the number of owners wishing to regain access to their old e-wallets has increased significantly. About 70 people a day turn to one company with requests to restore access to digital wallets. That’s about three times as many as in December 2020.

For example, former Ripple Chief Technology Officer Stephan Thomas lost a paper with the digital wallet password written on it. As a result, he risks losing $240 million.