How exactly it's flawed or inadequate? It's still deemed secure until now and at that time, Satoshi couldn't use Schnorr Signature due to patent.
in the old days it would have been impossible. But now any password without a timestamp can be brute forced. Algorithms like Bcrypt are stronger. You can examine the range of timestamped ciphers with public hash used in cryptography.
What are you talking about? secp256k1 (as part of ECDSA) is used to generate public key and sign transaction/message, not handling password.
And what exactly do you mean by lost wallets?
Before 2013, there was no movement. or wallets that were stolen and not moved, I have a 6-month research for these.
73,000 BTC lost wallet and 155,000 BTC Lost and Stolen wallet total.
IMO it's flawed way, when i've seen people claim they attempt to recover their Bitcoin they obtained a decade ago or longer. Besides, how do you determine whether certain Bitcoin were stolen? Rely on people's report?