Lessons From the Biggest Bitcoin Losses in History.

[MarjorieZimmermanGinger]

Over the years many people has ended up losing their bitcoin that is worth billions because of exchanges being hacked, scam activities, forgetting passwords, security practices that are very poor and errors made by people holding bitcoin.

lesson learnt:
Bitcoin rewards discipline more than intelligence. Even experienced users benefit from following simple security principles consistently.

Bad things have happened in this industry, and many people are likely still losing Bitcoin in various ways, generally influenced by a lack of understanding of how scams occur. Many people lose Bitcoin for various reasons, such as trusting the wrong people, being hacked, or sharing too much public information, resulting in unnecessary losses due to carelessness. This can be an important lesson for anyone involved in Bitcoin, as the principle of security is essentially that we ourselves must be selective.

There has been a fairly structured pattern of Bitcoin losses in the past, and this has been quite widespread in our area, such as fraudulent investments involving Bitcoin. If one is not greedy and never believes in making large profits from such activities, many people can avoid such investment activities. There are always sweet promises behind every scam, so we must be vigilant and not overreact.

[abaeze]

Personally, I consider all the possible risks to my wallet. Whether it is a natural disaster, an unexpected incident (for example; an accident), physical or digital vulnerabilities, or anything else. So, I think every crypto user should consider all these possibilities, and always be skeptical of anything that might happen. Isn't it dangerous if you are not skeptical? Yes, I think people who lack skepticism are more likely to lose their crypto or Bitcoin.

Your point is logical but I see it a little differently. And that is, always be risk-aware but there is no need to be irrationally afraid. Most of the big losses in crypto are usually due to small mistakes or negligence. No one intentionally gives or tells the seed phrase of the wallet to anyone, but when the assets become large, the risk of hacking increases. In most cases, no one thinks about or is not that concerned about the small assets of the wallet, but when the amount of coins or BTC in the wallet becomes very large, that wallet catches the eyes of hackers and attracts them and starts looking for various weaknesses, and at some point, they use that weakness to transfer money to another wallet. So, just as it is not right to be completely relaxed, on the other hand, it is not right to change wallets repeatedly due to excessive suspicion about everything, move the seed phrase unnecessarily here and there, or create overly complex security systems, which one does not understand later, in this case, that security system itself can create new risks. Many people lose their Bitcoin not because of hackers but because of the extra complications they create themselves.

[I_Anime]

The fifth point you made is a common mistake that a lot of crypto holders make and even till this day people are making the same mistake. We all know that Bitcoin is volatile just like every other crypto coin but the rate of this is low compared altcoins and there's no permanent loss when investing in this coin which is why it is dumb idea to sell your coins during a dip because you are scared of losing. Even people that have been investing for a long still fall into this category, it is not just about experience, mental maturity is also included as well.

Some folks can’t bare seeing their hard earned money depreciate , so that fear + ignorance (not knowing how bitcoin works ) may lead to one making the  decision of selling off their holding , to point that some even think that is their bitcoin quantity that’s reducing not knowing is actually the value depreciating their bitcoin is still where it is . Unless you make some silly mistakes that will make your wallet an easy target for scammers then you won’t meet your bitcoin same place (wallet) you left it . That’s why is good to equipped yourself with the right know concerning cryptocurrency in a whole , In this space knowledge plays a vital role .

[Rubuchi]

Some folks can’t bare seeing their hard earned money depreciate , so that fear + ignorance (not knowing how bitcoin works ) may lead to one making the  decision of selling off their holding , to point that some even think that is their bitcoin quantity that’s reducing not knowing is actually the value depreciating their bitcoin is still where it is . Unless you make some silly mistakes that will make your wallet an easy target for scammers then you won’t meet your bitcoin same place (wallet) you left it . That’s why is good to equipped yourself with the right know concerning cryptocurrency in a whole , In this space knowledge plays a vital role .

these are all elements of people who fall into the traps of FOMO too and this happens mostly with people that have little knowledge about how bitcoin works in general. Patience is one thing many of them lack while some have issues of asking or making the right enquiries. If you have any of those issues, it might be the more reason why these folks are finding it difficult to be profitable in bitcoin and cannot hold their money until they achieve their desirable goals or targets.

[Pmalek]

Now we have the Coldcard disaster that will forever change how we view cold storage. Despite the keys being generated offline and never touching the internet, hundreds of users lost over 1000 BTC in the last few days. The lesson learnt is that one line of code can be the difference between sufficient or insufficient amount of entropy. If it's the latter, it can have devastating consequences. In the future we will see greater focus on more complex key generation, like getting entropy from dice rolls. It will take more time but if the dice aren't biased it will be safer all-around.

[FinneysTrueVision]

Now we have the Coldcard disaster that will forever change how we view cold storage. Despite the keys being generated offline and never touching the internet, hundreds of users lost over 1000 BTC in the last few days. The lesson learnt is that one line of code can be the difference between sufficient or insufficient amount of entropy. If it's the latter, it can have devastating consequences. In the future we will see greater focus on more complex key generation, like getting entropy from dice rolls. It will take more time but if the dice aren't biased it will be safer all-around.

I’ve seen people like Michael Saylor using this opportunity to tell people that it is better to put money in custodial ETFs, centralized exchanges and treasury company stocks. That is a completely wrong mentality. The ColdCard incident, as painful as it is to have to learn through devastating losses, will lead to better hardware wallet security and more thorough testing. Another important lesson is that when a developer is as hubristic and hostile as NVK, they should be scrutinized the hardest. Acting tough and untouchable isn’t going to protect anybody’s multi-million dollar fortune.

[Pmalek]

I’ve seen people like Michael Saylor using this opportunity to tell people that it is better to put money in custodial ETFs, centralized exchanges and treasury company stocks. That is a completely wrong mentality. The ColdCard incident, as painful as it is to have to learn through devastating losses, will lead to better hardware wallet security and more thorough testing. Another important lesson is that when a developer is as hubristic and hostile as NVK, they should be scrutinized the hardest. Acting tough and untouchable isn’t going to protect anybody’s multi-million dollar fortune.

It was to be expected that various services would use this unfortunate incident to their advantage in order to advertise their own products and boost their sales. Michael Saylor has said all kinds of things, from never selling bitcoin to buying bitcoin forever, regardless of the price. That then changed to sell some bitcoin and buy back later. Then it changed again to him saying that regular people shouldn't sell, but it's different for institutional investors. The most recent news is that Strategy has put forward plans to sell $5 billion worth of BTC to increase their cash reserves. People say one thing when things look bright and another one when they get dark(er).

[arwin100]

I’ve seen people like Michael Saylor using this opportunity to tell people that it is better to put money in custodial ETFs, centralized exchanges and treasury company stocks. That is a completely wrong mentality. The ColdCard incident, as painful as it is to have to learn through devastating losses, will lead to better hardware wallet security and more thorough testing. Another important lesson is that when a developer is as hubristic and hostile as NVK, they should be scrutinized the hardest. Acting tough and untouchable isn’t going to protect anybody’s multi-million dollar fortune.

It was to be expected that various services would use this unfortunate incident to their advantage in order to advertise their own products and boost their sales. Michael Saylor has said all kinds of things, from never selling bitcoin to buying bitcoin forever, regardless of the price. That then changed to sell some bitcoin and buy back later. Then it changed again to him saying that regular people shouldn't sell, but it's different for institutional investors. The most recent news is that Strategy has put forward plans to sell $5 billion worth of BTC to increase their cash reserves. People say one thing when things look bright and another one when they get dark(er).

Well that's how they take advantage on the news, Coldcard is common topic now and Saylor just ride on the noise and try to market those products that they have.

Also his tone change depends on market situation. If we look at his past actions he always says about never sell and continue to buy when market is in good condition. But his narrative change and he's now into selling and drop many reasons why they made that sales.

Speaking about sales as what I read on Bitcoin Magazine Strategy again sold 1,637 Bitcoins, don't know if this new or just re upload. But It seems that dumps is their new normal now https://www.facebook.com/share/p/1HZiUc27yE/.

With such thing happened to them it just shows that their business decision change depends on the situations happened in the market.

[Patikno]

Personally, I consider all the possible risks to my wallet. Whether it is a natural disaster, an unexpected incident (for example; an accident), physical or digital vulnerabilities, or anything else. So, I think every crypto user should consider all these possibilities, and always be skeptical of anything that might happen. Isn't it dangerous if you are not skeptical? Yes, I think people who lack skepticism are more likely to lose their crypto or Bitcoin.

Your point is logical but I see it a little differently. And that is, always be risk-aware but there is no need to be irrationally afraid. Most of the big losses in crypto are usually due to small mistakes or negligence. No one intentionally gives or tells the seed phrase of the wallet to anyone, but when the assets become large, the risk of hacking increases. In most cases, no one thinks about or is not that concerned about the small assets of the wallet, but when the amount of coins or BTC in the wallet becomes very large, that wallet catches the eyes of hackers and attracts them and starts looking for various weaknesses, and at some point, they use that weakness to transfer money to another wallet. So, just as it is not right to be completely relaxed, on the other hand, it is not right to change wallets repeatedly due to excessive suspicion about everything, move the seed phrase unnecessarily here and there, or create overly complex security systems, which one does not understand later, in this case, that security system itself can create new risks. Many people lose their Bitcoin not because of hackers but because of the extra complications they create themselves.

I don't know, if I have heard too many motivational quotes or what, but I believe fear or skepticism can help someone survive a problem. I heard those words from a financial motivational speaker who was talking about finances, and he said that wealthy people often think about how they will lose their money (especially quickly). So, I apply that mindset to various things, including protecting my crypto or Bitcoin. I think that mindset can be used in any situation, including when someone is securing their wallet, don't you think ?

[icebar]

I’ve seen people like Michael Saylor using this opportunity to tell people that it is better to put money in custodial ETFs, centralized exchanges and treasury company stocks. That is a completely wrong mentality. The ColdCard incident, as painful as it is to have to learn through devastating losses, will lead to better hardware wallet security and more thorough testing. Another important lesson is that when a developer is as hubristic and hostile as NVK, they should be scrutinized the hardest. Acting tough and untouchable isn’t going to protect anybody’s multi-million dollar fortune.

It was to be expected that various services would use this unfortunate incident to their advantage in order to advertise their own products and boost their sales. Michael Saylor has said all kinds of things, from never selling bitcoin to buying bitcoin forever, regardless of the price. That then changed to sell some bitcoin and buy back later. Then it changed again to him saying that regular people shouldn't sell, but it's different for institutional investors. The most recent news is that Strategy has put forward plans to sell $5 billion worth of BTC to increase their cash reserves. People say one thing when things look bright and another one when they get dark(er).

I would definitely agree with you. An investor's situation will not be always stable. That is why there may be a difference between his previous and his current statements. From the beginning, Michael Saylor was steadfast in his principle of only holding. He himself has done this, but there is no guarantee that his plan will always be the same. An important point is that he did not invest his personal money in Bitcoin. Since he is an institutional investor, he must sell Bitcoin. In running an organization, money is needed at different times, and it is not possible to invest that required money in Bitcoin and keep it for a long time.

Ordinary investors should not invest in Bitcoin depending on any particular person or influencer. We have heard about Elon Musk before, and everyone knows how much loss he caused for various investors. Although there is no such allegation against Michael Saylor, everyone who invests will have to accept the risk of his assets. Whether someone sells or buys is their own business, but according to their principles, investing in Bitcoin is definitely not profitable.

[Zanab247]

Don't wait for it to come because it might land on you in a very bad way, crypto scam is real and those who are affected never wish the were, there are lots of mistakes we do from our end in which permit for any form of scam to penetrate to us, because the scammers will always be looking after a particular vulnerability to serve as routes for them to attack, this is where we don't have to play with the security and privacy in crypto.

This is the reason why some people don't allow it to happen to them, because it will change their attitude completely that will make such people that fall victim to vow never to experience such thing in the community. Anyone that have been scammed, he or she fail to change, it will be hard for such person to succeed in this industry no matter how experience he or she is in the forum because scammers will continue taking advantage of some of the things that is making he or she to fall victim.

There is a way you will learn from other people mistakes in this forum, it will be hard for you to enter the hand of scammers, because you know how they operate to deceive newbies.