Coin Metrics Reveals the Estimated Amount of Lost Bitcoins

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AS of today, there are 18,074,800 Bitcoins are in existence. However, this number does not account for the total supply of circulating Bitcoins. Researchers at Coin Metrics publicized an analysis with regards to how the public can utilize various methods to asses Bitcoin’s real supply.

 

As Coin Metrics’ post noted, the firm delves into why the supplies of Bitcoin are lower than anticipated. It also computed the number of coins that are lost and tried to find out what happened to those. The study conferred the lost Bitcoins like unspent outputs like the 50 Bitcoins sealed in the first block. The results showed that those 50 BTC are not existent on the same ledger, no matter if they are visible in primary chain-included transactions.

 

Furthermore, researchers emphasized the unclaimed rewards, coinbase transactions, as well as OP_Return outputs that use more than zero satoshis. In total, Bitcoin’s actual supply can be calculated at block 600,000, working backward from the anticipated 18 million Bitcoin value and then subtracting the amount that can be proved as lost.

 

Using the calculation that the researchers detailed, it figures that 17,999.817 Bitcoins as of block 600,000 is the correct view of Bitcoin’s supply.

 

Notably, a satoshi is the smallest Bitcoin value

 

Following the lost coin topic, the paper furthermore tackled the presumed lost coins like bugs in script, bogus addresses, and zombie coins. Moreover, the paper regarded the lost or stolen coins or a significant amount of coins that are difficult to be brought back into rotation.

 

A good case of the lost coin is when 79,956 Bitcoin was stolen from Mt. Gox exchange, and the assets now rest in the sixth wealthiest Bitcoin address. Through the lost coins studied, the researchers of Coin Metrics established three accustomed views of the BTC protocol’s supply. The first view tallies the provably lost coins. The second perspectives account for assumed lost coins, and the third view excludes provably, stolen, and assumed lost coins.

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