The decentralized nature of Bitcoin (BTC) allows users to become their own bank. It provides individuals with the opportunity to fully own and control their assets. The downside of this fundamental feature of Bitcoin is that users are responsible for the security of their funds. The tragic story of John, an ordinary student, shows that a small mistake can lead to catastrophic financial losses.

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The Bitcoin dream fades because of one forgotten bag

John is an ordinary student who immersed himself in the world of Bitcoin in 2012, just 3 years after the network was founded. He then made the decision to invest a modest amount in the decentralized currency, receiving a total of 10 Bitcoin.

Throughout 2012, the price of Bitcoin moved between approximately $4.50 and $13.70. This means that John’s total investment was between $45 and $137.

With the impressive trajectory that Bitcoin’s price took in the following years, his investments grew to a massive size in 2017. While his financial future was bright, a moment of disinterest led to an unexpected setback.

John was his Private keysOr secret codes that give access to cryptocurrency stored on a USB stick. the Tragedy John started with a simple bag that he would forget as he moved from one place to another. In one fell swoop, access to his 10 bitcoins vanished when he realized his USB drive was in that bag.

With Bitcoin trading at around $10,000 at the time, John’s simple oversight resulted in a loss of around $100,000. With Bitcoin’s current price of $44,000, his collection would be worth $440,000.

Important coding lessons

John’s story underscores the high level of responsibility that comes with “being your own bank.” There is no central authority that users can rely on in case of problems. Each person is responsible for the security of their private keys, which entails risks.

The incident highlights the need for reliable backup strategies for cryptocurrency wallets. Creating duplicate copies of private keys and storing them in secure locations ensures that even if one copy is lost, funds can still be accessed and recovered.

He also stresses the importance of being careful when handling physical items, such as USB sticks or hardware wallets, on which cryptocurrency assets are stored. Losing private keys simply results in irrecoverable financial losses, and not every cryptocurrency investor is aware of this.

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