The security issue has never been a problem for bitcoin since its inception and it is hack-proof because the most sought after cryptocurrency is constantly reviewed by the entire network so there is a very low chance that it could be hacked. Over-writing a block of bitcoin that’s already spent has been made impossible by the decentralized, computing, and power-intensive characteristics of the blockchain.
The blockchain is also known as the trust protocol because the decentralized digital ledger of bitcoin is strongly immutable and that makes it a potentially world-changing technology. However, just because the chances of manipulating bitcoin blockchain is very low does not mean it is a safe investment. At various stages of the trading process, there is a potential security risk. Bitcoins are held in wallets traded through digital currency exchange which developers are always optimizing the security but there are also people out there looking for ways to illegally gain access to other peoples’ wallets to wipe their coins.
A few reports of hacks, frauds, and scams have been publicized in the past but those reports were ruled out as rumor because bitcoin has never been hacked and it can never be hacked. Just as bitcoin has never been hacked, it has also not been shut down. There are few extreme circumstances that could draw bitcoin to its end, for instance, a massive global power outage shutting down all communications and the internet around the globe could prevent nodes in the network from contacting one another causing the system to fail. Many people confuse cryptocurrency exchanges and wallets being hacked with bitcoin being hacked. If a hacker gains access to a bitcoin wallet and the necessary keys to carry out transactions, they can steal the coins in the wallet by transferring them into an offline wallet to avoid being traced.
Facilitating transactions with stolen coins can lead to the arrest of the hacker because the blockchain must have been notified the moment the moments the coins get stolen. However, the coins can be cashed out through laundering processes usually offline. If in the future, the hacker decides to facilitate transactions through an online channel, the coins will be flagged as stolen. All bitcoin investors are therefore advised to take proper precautions to protect their wallets as much as they can.
Having a lot of people around while facilitating a transaction could be a security risk to one’s wallet and so is dealing with rippers. One of the best ways of protecting one’s wallet is by trading on a safe and reliable platform or carrying out a one-one transaction with a trustworthy person or a group of people.
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