Sleeping Bitcoins Have Woken Up
Sleeping Bitcoins Have Woken Up To $107 Million
In a rather unusual development, an unknown benefactor has transferred almost $107 million worth of Bitcoins from dormant accounts to an account that can be more easily accessed. The transfer took place in several batches over a period of two years and was announced on Wednesday by the New York-based digital currency exchange Gemini exchange. If you are wondering what sleeping Bitcoin means and why it needs to wake up, here is everything you need to know about it.
What is a sleeping Bitcoin?
A sleeping Bitcoin is a digital currency stored in accounts that have not been active for several years. The accounts could belong to individuals who mined Bitcoins or traded them for goods and services before the currency became popular. Sleeping Bitcoin are accounts with a zero or negligible balance that have not been touched for a long time. These accounts were created when people bought and sold Bitcoin in its early days, when very few people knew of the existence of this cryptocurrency. People mined Bitcoins and traded them for goods and services before the currency became popular. They stored their Bitcoin in digital wallets, but the owners of these wallets forgot about the money because they had no reason to access them.
Why are Bitcoins sleeping?
There are many reasons why people store money in dormant accounts. Some people forget they have the money in their bank accounts while others keep their savings in a secret account hidden from their spouse. There are also people who buy stocks and forget to sell them before the deadline. These people simply forget that the money is in their accounts. However, their money is in no danger since it is supervised by financial institutions. The same cannot be said about Bitcoins. They are stored in digital wallets that are not protected by banks. The owners of the wallets need to remember the Bitcoin addresses and unlock the wallets with a secret key to access the money. The owners of sleeping Bitcoin are long forgotten by the people who mined them or bought and sold them for goods and services. The wallets are simply waiting for the right person to unlock them and claim the money.
How to wake up a sleeping Bitcoin?
There are a few methods that can be used to wake up a sleeping Bitcoin. The most preferred method is to send some amount of money from another account to the Bitcoin wallet. The system will automatically send a small amount of money to the dormant account to open it. The account will be active until the money is withdrawn. This method could be used to wake up dozens of dormant accounts at the same time. The owner of the dormant account can claim back the money by sending a small amount to itself. Another method to wake up a sleeping Bitcoin is to purchase items from an online store that accepts digital currency. The method is similar to the first one. The store will receive money from the dormant account, and the money will be sent to the account. The owner of the account can claim back the money by sending it to the store.
The mystery behind the transfer of $107 million worth of BTC
The mystery behind the transfer of $107 million worth of BTC revolves around one person, who is suspected to be the owner of the dormant accounts. The person deposited BTC to an account with Gemini Exchange from various other dormant accounts. The deposits took place in several batches over a period of two years. On Wednesday Gemini Exchange announced the completion of the deposits and the commencement of the account’s claiming process. A person can claim an account by providing the name under which he or she created the account and the secret key associated with it. The claiming process ends on October 19, after which the account will be transferred to another owner. The owner of the accounts can withdraw the money in the form of US dollars or other digital currencies such as Ethereum. There is no proof that the owner of the accounts is the person who deposited them. The owner could have hired a person to deposit the money or could have made the deposits himself under a different identity.
People often complain that they forget where they have stored their passwords. There is a rare chance that they will remember the passwords of their Bitcoin wallets. The owners of the dormant accounts could be long dead, and their families could be unaware of the money. There is no information available on the identity of the depositor. There is also no information concerning the amount deposited in the accounts. Gemini Exchange simply stated that the deposits are a gift to the digital currency community. The deposits are a gift to the digital currency community from a donor who wishes to remain anonymous. We are grateful for this gift and for the generosity and enthusiasm of our investors and customers.