I am quite confident that loss of password is the number one
cause of lost bitcoins. If you don't write down the password,
you'll likely forget it. If you do manage to memorize it, the
password is too weak.
Make it a habit to write down your passwords on a piece of
paper. After you've written down a password, you should use it
at least once to make sure there's no typo. Make several copies
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The Economics of Bitcoin
and store them at various safe locations. If you are afraid that
someone will find the notes and use your passwords, you can
make your own simple encryption. Say that your real password
is “5vO8bw$3mK”. Instead of writing it down as it is you can
write “5v$8bwO3mK”. Only you know that the third and
seventh character have changed place. A thief would not only
have to physically get access to your note, but it would take a
great effort to figure out your system.