Bitcoin is the first cryptocurrency that was launched 12 years ago by developer Satoshi Nakamoto. The history of the crypto industry goes back to 2009. But there are many doubts and theories about crypto and especially bitcoin, that discourage people to invest and trade with it. In this article, we are going to discuss the main theories and rumors around bitcoin and answer the following question: is bitcoin safe?
If you ask a common observer what is his/her the obstacle to trade or invest with bitcoin, the answer would be like that: “I do not believe in it, bitcoin is a bubble, it is not safe…” Undoubtedly, bitcoin is the safest kind of digital money as it has never been hacked in all its history. The numerous news titles about hacking the bitcoin system refer not particularly to the coin, but crypto wallets, stock exchange, etc. Bitcoin works without any human intervention. This digital asset cannot be falsified as the release of coins takes place according to a schedule strictly predetermined by the protocol of the algorithm, which cannot be violated. If at least one miner is active on the network, the system will function. Bitcoin is safer than any other financial system, as it is based on encrypted blockchain technologies, that allow tracking of all transaction history. It also means that each new block of transaction adds to the chain of the previous ones.
The 51% Attack
This technology prevents hacking and manipulations with cryptocurrency. Some of you may have heard about the 51% Attack. Let’s have a closer look at this vulnerability. Indeed, the principle of encryption security is based on the fact that the calculation is distributed between all the nodes, that means all the computers around the world that are validating bitcoin transactions, and in the absence of a central regulatory body, the blockchain can only be validated using a consensus method. If a single node introduces an error or hacks the blockchain, the mass of other minors will automatically correct this error or hack. Since this incorrect blockchain does not correspond to the majority of the other blockchains mined by the other nodes, this block will not be integrated into the general registry. But if a cooperative has more than 50% of the mining capacities, it becomes theoretically possible to hack the blockchain: more than half of the miners validating the corrupted block, it becomes the “official” block, because the distributed control algorithm will see it as the majority. This will allow the modification of the blockchain. The hacker then becomes the owner of the blockchain and is able to generate blocks, confirm and reject transactions by himself. Having taken control over the system, the person can also halt its functioning by refusing to confirm all transactions. As you may understand, controlling more than 50% of the total computers validating bitcoin is very unlikely to happen
A powerful instrument
Bitcoin combines all the best money characteristics. These digital assets cannot be issued out of control by central banks, causing inflation. It also cannot be censored or confiscated by third parties. Bitcoin has no borders and is not controlled by any country, as it is a heritage of humanity and a powerful instrument that is the result of technical progress. Bitcoin is accessible to everyone and does not discriminate against anyone based on geography, age, gender, or religion. In order to become part of the crypto community, you can buy just a small piece of bitcoin. You can buy, sell, trade, and exchange with bitcoin on the bit4you exchange platform and explore the crypto world to become advanced in this sphere.
Start training yourself
However, bit4you provides its customers with the opportunity to train themselves in trading and investment with the help of the Demo mode. It completely simulates real trading with $100 000 of virtual funds that are available to any user on the platform. The user has an opportunity to explore all options and learn a lot about the cryptocurrency market and improve his skills before trading with real money. Users may find tons of useful information on the platform to help them better understand this exciting new technology. Using charts and graphs, news’ analysis, and other fundamental factors allow you to make your own predictions about the price movements and market tendencies.
Valentina BEREZA, Team bit4you