One of the major concerns on every bitcoin enthusiast’s mind is the question of security. Is bitcoin really that secure?
It’s no secret that various exchanges have been hacked in the past resulting in hundreds, sometimes even thousands of lost coins amongst their customers. Things like the Mt. Gox debacle and most recently the attack on Bitstamp is bound to get people worried, and many to this day refuse to delve in digital currencies due to these circumstances.
What many don’t always seem to understand, however, is that it is not necessarily bitcoin that is hackable, but rather just the exchanges themselves; it’s like what one sees with banks. It’s not necessarily the money that’s vulnerable, but rather the banks.
As many know, bitcoin relies on what is known as blockchain technology, which is actually what gives bitcoin its security in the first place. This technology has a strong track record, with the most common vulnerabilities resulting simply from user error. Wallets that hold the private keys necessary to store bitcoin can sometimes be lost, stolen or deleted in some way, and ultimately, while the blockchain is solid and stable, things generally depend on a user’s actions.
The positive side is that those who delve in cryptocurrency can either implement their own security or turn to sound providers of good security practices and insurance to protect bitcoins and possibly offer compensation should loss or theft occur.
So as long as bitcoin is here to stay, why miss out on all the fun? Treat yourself to the world of digital monies and get with the times.