Security Issues to Know When Using Bitcoin The Guardian Nigeria News

Bitcoin technology is undoubtedly secure. However, no technology is 100% secure. Although it is an important and successful cryptocurrency, Bitcoin has some security issues that users should be aware of. Whether you want to invest in this digital currency or trade it, it is crucial to understand the risks associated with its use. Here are the top security issues every Bitcoin user should be aware of.

Bitcoin is extremely volatile
The Bitcoin network uses secure cryptography. However, some people argue that it is not a safe investment due to its volatility. Bitcoin has an international market that operates 24/7 without a regulator. So this virtual currency can be worth $ 60,000 today, then drop to $ 30,000 the next day.

Although this virtual currency has seen stability in a few days, this period does not last long. So, investing in Bitcoin is risky due to its extreme volatility.

Cyber ​​attacks and hackers
Most people trade Bitcoin on crypto exchanges like After purchasing this virtual currency on such platforms, people send it to their digital wallets. Unfortunately, criminals have hacked into such systems in the past. Although the value of this digital currency subsequently collapsed, some people fear that a single attack could completely cripple this digital currency.

While criminals don’t hack the blockchain itself, crypto exchanges can be their prime target. Plus, anyone can get a private key and use it to clean a digital wallet without the owner realizing it. And hackers keep looking for ways to steal Bitcoin users. Currently, the Distributed Denial of Service attack is a significant threat to Bitcoin exchanges.

Losing Bitcoin Passwords
People store Bitcoins in crypto wallets. Forgetting a Bitcoin wallet password means the user loses their funds. This is because you don’t have a central authority that can help you recover the account. Over the years, several people have lost their funds after forgetting the password for crypto wallets.

51% attacks
The 51% that people associate with Bitcoin is a security concern for this digital currency. While executing this attack is not easy, it is possible. Bitcoin mining is getting more and more difficult. For this reason, miners join pools to combine computing power.

If a Bitcoin mining pool becomes extremely powerful, it can control over 51% of the overall mining power. In this way, the group can threaten the Bitcoin network. In this way, the group can manipulate Bitcoin transactions by spending twice or generating “invalid” blocks.

Using ASICS mining rigs implies that most miners can use pools to do so. And some mining pools have extensive power that they can misuse.

Double expenses
The Bitcoin network has put in place reinforcements to alleviate this security problem. However, some people fear this when handling Bitcoin transactions. Bitcoin is becoming increasingly robust against possible coordinated double spending. Nevertheless, some people can constitute attacks and gain by spending a coin twice in a transaction.

For example, someone can send x bitcoins to a merchant after purchasing items from them. At the same time, the same person can perform a similar transaction by sending the same amount of Bitcoin to another address under their control. So the merchant may believe that the customer sent the funds and not even confirm it. However, the customer’s address can receive the coins, which means the merchant will not receive the funds.

Due to the irreversibility of Bitcoin transactions, the merchant cannot void the transaction. And the trader has no recourse since there is no authority regulating this virtual currency.

The bottom line
Bitcoin’s security concerns relate to its use, not the blockchain network. Therefore, Bitcoin users can remedy most of these issues to avoid exacerbating the problems of this virtual currency. Nonetheless, every Bitcoin trader or investor should be aware of these concerns and their potential effects on their investments.

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