Bitcoin’s price has been on a wild ride since its inception. That’s why investor’s concerns about Bitcoin are rising too. If you are new to this, probably, the most important question you want to be answered is, is Bitcoin safe?
There are 3 Reasons why Bitcoin is considered safe, here they are:
1. Bitcoin is encrypted and secure
Not just normal, run-of-the-mill encrypted. Bitcoin is encrypted and backed by a special system called a blockchain. Blockchain uses volunteers — a whole lot of them — to work together to encrypt the transactions that happen in the Bitcoin system. And in doing so, they make sure that all personal information is kept hidden away from any spying eyes, and that even if hackers do manage to get into the system, there’s nothing of value to steal.
In short, Bitcoin is unhackable.
2. Bitcoin is public
This means all the transactions are transparent and available to the public even if the people involved are anonymous.
That means no one can cheat, scam, or otherwise fraud the system. They’re also irreversible, so once you get your Bitcoins, or sell them, no one can go and demand their money back. With Bitcoin, it’s like having thousands of people watching your wallet to make sure no one tries to steal anything.
Bitcoin is not anonymous.
3. Bitcoin is decentralized
This means, no bank, government or any regulatory body regulates bitcoin.
Bitcoin has servers all over the world, and over ten thousand nodes keeping track of all the transactions happening on the system.
And that’s important, because it means if something was to happen to one of the servers or nodes, the others can pick up the slack. It also means trying to hack into one of the servers is pointless: there’s nothing there you could steal that the other nodes and servers couldn’t prevent, unless you happen to control 51% of the nodes. A not impossible but terribly unlikely situation.
Since Bitcoin is decentralized, meaning, no government nor banks has the control over it. They cannot put charges over it and cannot stop you if you want to transfer large amount of bitcoin to anyone, anywhere.
By 2030, the demand for alternative currencies will rise, with digital currencies eventually replacing cash, according to recent research from Deutsche Bank.
In order to gain wider acceptance, digital assets need to overcome the major hurdle, this include:
- Perceived legitimacy in the eyes of governments and regulators, which entails price stability and allows for global reach in the payment market.
- According to Reid, the establishment of alliances with key stakeholders like mobile apps and card providers will enable this development.
Few of the news on how countries are adapting to Cryptocurrencies:
- German Banks Authorized to Store and Sell Cryptocurrency in 2020
- South Korea passes one of the world’s first comprehensive cryptocurrency laws
- Thailand: Cryptocurrency Law Will Change in 2020 to Stay ‘Competitive’
- New EU law: Banks allowed to hold and sell Bitcoin as of 2020
Philippines is also slowly adapting too to Bitcoin and Block chain, see article below:
- SG tech firm partners with PH, provides P15 million for blockchain tech projects
- PTV news: Agreement on use of blockchain technology signed in Philippines
If you are still skeptical until now about Bitcoin, it’s ok. I understand.
People are asking the same question:
How does bitcoin, something that’s essentially invisible and intangible, has value?
The Majority of the population are considered late adapters.
Because, it’s like this, try to imagine, living a life of cellphone or the internet, when you are in 1960’s. Imagine yourself, thinking of the impossibility of that. Right?
Bitcoin and other digital coins may rise or fall whether you like it or not. It’s a matter of riding it now, or riding it later. It’s up to you.
If you want to know where to buy bitcoins safely in the Philippines, click my previous article about that.
Ride with me,
Read more:
- Bitcoin for Beginners (Bitcoin Part 1)
- What are the FAQs About Bitcoin (Bitcoin Part 2)
- Where to buy Bitcoin in the Philippines (Bitcoin Part 3)
Sources: AVG https://www.avg.com/en/signal/is-bitcoin-safe
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