Timothy Peterson, founder and manager of Cane Island Alternative Advisors, estimates that 6 million bitcoins have been lost forever.
Peterson asserted that of the roughly 19.3 million bitcoins produced as of March 25, 2023, only 13.3 million bitcoins are still in circulation. Peterson’s latest estimate of the number of lost bitcoins appears to be in line with his predictions for 2020.
In September 2020, Peterson claimed that approximately 1,500 bitcoins were being lost every day, which meant that there were less than 14 million bitcoins in circulation.
According to Cane Island Alternative Advisors researchers, a widely used measure of bitcoin capitalization is inaccurate because it includes bitcoins that have been lost and cannot be recovered.
The number of lost bitcoins is of great concern to investors as it reduces the overall supply of available bitcoins in the market. In addition, lost bitcoins are likely to be concentrated in the hands of a few individuals or organizations, which could affect market stability if they suddenly re-enter circulation.
As of now, it is not possible to determine the exact number of bitcoins lost. Many bitcoins have been lost due to forgotten passwords, misplaced hardware wallets, or other forms of negligence.
However, Peterson’s estimate sheds light on the issue and highlights the need for investors to exercise caution when investing in Bitcoin.