Bitcoin has the fixed supply of 21 million, however, in the light of current and past events, thousands, presumably millions of Bitcoins are lost that only reduces its supply.
Crypto Exchange Founder Dies, Crypto Funds Lost
Canadian cryptocurrency exchange QuadrigaCX can’t access the majority of the $190 million that it owes to its customers, according to a court filing. In a sworn affidavit with the Nova Scotia Supreme Court, Jennifer Roberson, identified as the widow of Gerald Cotten, founder of QuadrigaCX, has stated that the exchange owes $250 million CAD that is $190 million to its customer. Recently, the exchange had taken a step to avoid bankruptcy by filing for protection from creditors.
According to the filing, as of January 31, 2019, there were about 115,000 users with their balances on the exchange inclusive of $180 million CAD in cryptocurrencies and $70 million CAD in fiat. The exchange, according to the affidavit holds about 26,500 Bitcoin ($92.3 million USD), 11,000 Bitcoin SV ($707,000), 11,000 Bitcoin Cash ($1.3 million), 35,000 Bitcoin Gold ($352,000), 430,000 Ether ($46 million), and 200,000 Litecoin ($6.5 million).
In the affidavit, only a small amount of coins were stored in the hot wallet as Robertson has further added, “The normal procedure was that [QuadrigaCX founder and CEO Gerald Cotten] would move the majority of the coins to cold storage as a way to protect the coins from hacking or other virtual theft.”
Reportedly, Cotten held “sole responsibility for handling the funds and coins,” and the rest of the team members had no luck accessing the cold wallets of the exchange as the founder had the sole knowledge who died earlier this month. After his death, Robertson wrote, “Quadriga’s inventory of cryptocurrency has become unavailable and some of it may be lost.”
Bitcoin Supply Burn
Now, looks like these funds will be forever lost which means these coins are deducted from the Bitcoin’s fixed supply of 21 million. Crypto trader, I am Nomad, took to Twitter to wonder aloud about this supposedly supply burn.
While, another crypto trader, Moon Overlord says, this number is rather “conservative” as when all’s said and done the number could be expected around 5 million.
The number could be easily expected to be in millions this as there have been many incidents where Bitcoin has been lost. In May, last year, Wired reported losing $100,000 in Bitcoin. They actually received a mining device back in 2013 and managed to mine about 13 Bitcoins and later decide to destroy the private key. Also, in the past, incidents have been reported where the Bitcoin owner either lost or forget the key which means those Bitcoin are lost forever with no chance of retrieving them.
With the number of Bitcoin to be ever in existence getting reduced, this further lowers the supply, making people more bullish.
Having a background in writing, I worked on a wide array of industry topics and have recently entered the world of Blockchain and Cryptocurrency.