Cryptocurrency analyst Timothy Peterson claims that the Bitcoin network is losing 1,500 BTC every day. This decreases the Bitcoin circulation to less than 14 million.
Every day about 900 new #bitcoin worth $9,000,000 are created. Every day about 1,500 bitcoin worth $15,000,000 are lost forever. Supply is shrinking, not growing. See “There Will Never Be More Than 14 Million Bitcoins” https://t.co/aaCqAGEbFd
— Timothy Peterson (@nsquaredcrypto) September 14, 2020
About 4% of available bitcoins are lost each year
In a recent Twitter post, Peterson, who also holds the position as CAIA manager at Cane Island Alternative Advisors, clarified that Bitcoin is losing a total of 4% per year. This 4% is from the available Bitcoin in circulation and not from the total supply figure of Bitcoin.
His team at Cane Island also did a research that supports Peterson’s tweet of Peterson, explaining that:
Since 2010, about 4% of the available supply of bitcoin has been lost each year. This puts the current available supply at about 13.9 million coins, well below the 18.3 million total supply figure publicized. This means that about 28% of all bitcoins have been irretrievably lost.
Peterson further explained the difference between available Bitcoin and total Bitcoin circulation. The available Bitcoin represents the user’s availability to actively use the coin in any crypto activities such as trading and peer-to-peer transactions.
On the other hand, the total Bitcoin portrays the whole Bitcoin ecosystem, which include bitcoins that can never be retrieved due to lost keys and bitcoins that are forever locked due to hardware failure.
Lost bitcoins are forever gone, but BTC will remain
We all know that once bitcoin transactions have been sent, these can never be retrieved. This means that once the deal is done, it can never be reversed. However, there are still many cases where users lost their coins from scammers and other cyber threats.
In the past weeks, there were many cases of hackers trying to penetrate crypto exchanges’ security to gain access to Bitcoin and other cryptos.
Regardless, Bitcoin remains to be strong despite the market volatility and issues regarding its stability. Reportedly, people believe that one bitcoin could surpass the price of $100,000 before the next halving event in 2024. All these events are an indication that Bitcoin would soon be bullish even in this time of market chaos.