There are 18.5 million Bitcoin (BTC) in existence and one-fifth or 20 percent of that number, approximately worth $140 billion, are lost or cannot be accessed by their owners, according to Chainalysis, a cryptocurrency data firm.
Bitcoin is decentralized cryptocurrency and this is its strongest advantage. However. it can be a huge problem to investors. Since it is decentralized, it is highly secure and private. There is no company responsible for issuing passwords or keeping passwords and it is not regulated by any government.
How Bitcoin security works
Bitcoin investors hold private keys to access, spend or transfer their digital assets. A network of computers governing the cryptocurrency’s structure follow a software containing all rules and a complex algorithm to create an address and a private key stored in a digital wallet.
The private key is made of a complex encryption and stringed data. The digital wallet is protected with passwords. Since Bitcoin is decentralized and not tied to any banks, it’s impossible to retrieve a password if you can’t remember it.
