Tuesday , January 19 2021

Programmer locked out of bitcoin wallet, password forgotten

While the price of bitcoin has recorded historic growth – increasing by 92% in a month and about 340% in a year – one investor has been excluded from accessing his wealth because he forgot his password.

Stefan Thomas, a German-born programmer in San Francisco, told The New York Times this week that he forgot the password for his IronKey, a secure hard drive with the keys of his wallet containing 7,002 bitcoins, or about $ 220 million worth . IronKey gives users 10 guesses to get their password right before encrypting the contents of the hard disk; Thomas has tried twice more.

“I would just lie in bed and think about it,” Thomas Nathaniel Popper of The Times reported. “Then I would go to the computer with some new strategy, and it would not work, and I would be desperate again.”

As some bitcoin investors get rich, others have had trouble accessing their investments because they forgot their passwords, The Times reported. About 20% of existing bitcoins “appear to be in lost or otherwise stranded wallets,” the report said.

Read more: Leaked memo shows that Amazon warns employees to ‘be vigilant’ for their safety, as very right-wing threats to blow up data centers arise after banning Parler

Some high profile investors remain cautious about the flow of bitcoin. UBS analysts said this week that the volatility of cryptocurrencies did not make it a “suitable alternative” to safe haven assets. And billionaire “Bond King” Jeffrey Gundlach said bitcoin hit “bubble territory” once the price exceeded $ 23,000.

Even after slipping as much as 20% over Sunday and Monday, the price of bitcoin recovered on Tuesday, rising to about $ 36,000.

In a tweet on Monday, “Shark Tank” star Mark Cuban compared the “crypto trade” to the dot-com bubble of the 1990s.

“Look at the crypto trade, it’s just like the internet bubble,” Cuban said. “KURTS. I think btc, eth, a few others will be analogous to those that were built in the dot-com era, the bubble survived and flourished, like AMZN, EBay and Priceline. Many will not. “

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