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ed209 | 12 years ago

When bitcoins are lost, are they lost forever? So the total pool of bitcoins will be 21m - your 160 and his 7000?

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pilgrim689|12 years ago

Yes. The "total pool of bitcoins" is actually less than 21m, considering the lost ones. Does it matter, though? Whether the max is 21m or 20.1321029 ...

Jtsummers|12 years ago

Potentially. There's a chance that someone could recreate the same keys for the lost wallets, but the odds are not in their favor (gross understatement). If this happened they'd be able to create transactions moving the bitcoins in the formerly lost wallets to their own wallet(s). However, until someone gets so lucky these bitcoins are locked out of the economy.

aric|12 years ago

No. They are still there, accounted to that address in the blockchain. In the rare event that someone discovers the private key used to derive that address: happy days. In the near term, practically speaking, you can negate them from circulation. It's a very low probability that it'll be spent.

Aldo_MX|12 years ago

I'm pretty confident that in the future it will be possible to break abandoned wallets.

tlrobinson|12 years ago

Break wallets encrypted with a passphrase, or crack private keys? The former is possible for weak passphrases, but if the latter is ever possible that's a Very Bad Thing for Bitcoin.

It may happen eventually, but hopefully we will have migrated to stronger crypto by then. I do wonder what will happen to abandoned coins at that point. Will they become invalid after a migration period, or will they be up for grabs to the fastest cracker?

maxerickson|12 years ago

They are pretty much lost, unless a plurality of miners decide to change the rules.