Binance's CZ Zhao Calls Bitcoin a Deflationary Asset Amid Estimated Losses

Binance founder Changpeng 'CZ' Zhao estimates that between 2-4 million Bitcoin (BTC) have been lost forever, which he believes makes BTC a 'deflationary asset'. This means that as more coins are permanently lost, the usable supply of BTC continues to decrease. According to CZ's estimate, about 10-20% of all mined BTC are lost or stuck.

The total number of Bitcoin mined is 20.07 million, with only 4.4% remaining to enter circulation. This translates to roughly 2-4 million BTC being lost forever. CZ's figures align with estimates from BitGo, which puts the number at 2.3-4 million BTC, or about 11-18% of the total supply cap.

Bitcoin can become inaccessible in several ways, such as when private keys or passwords are lost, or when someone dies without leaving seed phrases or recovery instructions for their heirs. This includes Satoshi Nakamoto's estimated 1.1 million untouched early BTC, which are technically dormant rather than confirmed lost.