Imagine a scenario where a well-known individual who possesses a substantial amount of Bitcoin passes away.
Typically, if no one gains access to the deceased person’s private keys, their Bitcoin holdings will be permanently lost.
Yet, during a recent discussion, MicroStrategy chairman Michael Saylor disclosed his support for the idea of destroying Bitcoin keys following one’s demise, ensuring that the BTC involved becomes irretrievable or inaccessible.
Saylor even characterized this act as a proportional contribution to all other Bitcoin holders.
It appears that Saylor is contemplating implementing this strategy with his own Bitcoin holdings when his life journey concludes.
The Implications of Destroying Private Keys for Bitcoin Wallets
Saylor’s advocacy for burning private keys is underpinned by the genuine scarcity of the digital currency. Although the total supply of BTC is capped at 21 million, a significant portion of Bitcoin becomes lost over time.
This loss commonly occurs through dormant addresses, either due to forgotten pass keys or the decease of the wallet owner.
Such lost coins contribute to the overall value and minimum price of Bitcoin since they will never be utilized again in the future. This effectively elevates Bitcoin’s scarcity and worth over time.
The CEO of MicroStrategy’s stance mirrors that of Bitcoin’s enigmatic founder, Satoshi Nakamoto. Nakamoto’s wallet contains 1 million Bitcoin generated in the early stages of the network.
The BTC within Nakamoto’s wallet has remained untouched since the mysterious figure, believed to be the founder of Bitcoin, disappeared from public view.
There have been conjectures linking Hal Finney to being Satoshi Nakamoto. Nonetheless, Finney refuted these allegations before his passing in 2014.
Some persist in believing that Finney was the mastermind behind Bitcoin given his background as a software developer and cryptographer.
This belief is mainly fueled by his active participation in the network’s inception, including receiving the first BTC transaction on the Bitcoin blockchain.
Regarding the 1 million BTC in untouched wallets, if more Bitcoin tycoons follow suit, the minimum price will continue to escalate.
Consequently, the remaining coins being exchanged online could witness a surge in value over time.
Presently, Saylor holds 17,732 BTC, valued at over $1.7 billion at the current market rate. The number of recognized BTC billionaires stands at less than 30 according to recent data.
Saylor expressed his desire to establish a lasting impact by promoting institutional acceptance of Bitcoin.