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Bitcoin User From 2010 Cashes Out $1,100,000+ Via Coinbase

A Bitcoin address with its last activity in 2010 has moved funds to Coinbase.

bitcoin (BTC)

In the hours leading up to press time, an old and previously dormant Bitcoin address made its first transaction in over fourteen years. The wallet which was first activated in April 2010, had received 50 BTC as a block reward for mining on the cryptocurrency network during those early years.

However, the coins have remained untouched since then despite Bitcoin’s massive surge over the past decade. Coins that fall into this category are generally categorized by blockchain forensics as lost because of the wallet’s inactivity.

But as demonstrated by the recent transfer, not all presumably lost bitcoins are permanently lost. In this case, the unknown entity behind the once-dormant Bitcoin address finally moved 16.99 BTC (approximately $1.1 million) to popular crypto exchange, Coinbase. Meanwhile, on-chain data shows that the sender still holds around 32.99 BTC (approximately $2.2 million), which they may choose to sell in the future.

Long-Term Bitcoin Holding Pays Off

The reasons why the mined coins have remained at the Bitcoin address since 2010 may vary. For instance, it may be a case of the user recently recovering their private key, or an early Bitcoin user simply deciding to leave the coins untouched while spending from other wallets they own.

In either case, however, the massive increase in the value of the presumably lost bitcoins underline how investors may profit from putting money into Bitcoin with a long-term perspective. While the 50 BTC was almost worthless at the time, its value has now soared into several millions.

Bitcoin first crossed $1 in February 2011 and has been on the rise ever since, reaching an all-time high above $73,700 earlier this year. Bitcoin’s attributes have also made it appealing to investors globally, as shown by its $1.3 trillion market cap, and some of the world’s largest asset managers now offering a Bitcoin investment product.

Wilfred Michael

Wilfred Michael is a highly experienced cryptocurrency journo. He has spent more than five years covering this exciting new technological space, and relishes the opportunity to play a role in driving what he considers to be the future of finance.