Bitcoin Brain Wallet

Let’s learn more about Bitcoin brain wallet from this “life lesson”. This is one of those life lessons that anyone who is a trader can learn from it. A Bitcoin investor claimed to have lost access to his funds which was worth $12.9 million (1,800 BTC). This happened after failing to record the passphrase for their wallet.

The user mentioned that a “brain wallet” was storing the coins back in 2016. However, when attempting to recover the wallet using the passphrase that was generated at the time, the wallet did not unlock.

A brain wallet refers to the concept of storing Bitcoins in one’s own mind by memorizing a seed phrase. To create a brain wallet, use Bitcoin wallet software to generate a seed phrase and then memorize it.

This claim sparked the attention of many and raised a lot of questions. According to data, only two wallets with an initial balance of around 1,800 BTC appeared in 2016. Both saw multiple subsequent inbound transactions. While 1,000 BTC ($7.16 million) left one of them in 2017.

One Reddit moderator highlighted the post as a fake. And the moderator of the r/Bitcoin subreddit took aim at brain wallets as a means of Bitcoin storage.

Nevertheless of the complaint’s authenticity, in 2019 the need to protect the private keys to cryptocurrency balances continues to raise.