Is Bitcoin or Crypto Currency Secured ?
Bitcoin or A crypto currency is built on a computer algorithm. It is an independent currency and no one can run it because it has no owner. This currency is not under the control of any authority. like rupee, dollar, euro or other currencies.
This currency is not operated by any state, any country, any institution or government. It is an online digital currency for which cryptography is used for its security. Usually, it is used to purchase goods or to buy a service. Although Crypto currency is most commonly used for investment.
It is a digital currency, which is not printed like other currency therefor it is also called virtual currency.
There are two things about crypto currency are most important –
- It is a digital currency that is used through the Internet and.
- It is also seen as an alternative to the traditional currency in the Future.
The first virtual online currency was Bitcoin. It was invented in 2008 and started in 2009.A Japanese Engineer Satoshi Nakamoto was built bitcoin for the first time as a digital currency. Initially it was not so popular, but gradually its rates started increasing.
From 2009 to the present day, about 1000 types of crypto currency are present in the market, which act as peer to peer electronic systems.
Apart from Bitcoin, other crypto currencies are available in the market now a days which are being used more Like Red Coin, Sia Coin, Cisco, Voice Coin and Monero Etc.
Note: (Monero is also a type of crypto currency in which special type of security is used. This is known as ring signature. It is used extensively in the dark web and block market. Smuggling is done with its help. Black marketing can be done easily with this virtual currency.)
How Bitcoin works?
It is exchanged with peer-to-peer technology it means these moneys are directly transferred from one computer to another computer.
It is sent as a block chain divided among the common people. As the bank keeps track of your money, these block chains keep an account of every bitcoin. That is, any transaction in any place in the world is accounted for in this block chain.
Since every transaction is verified and the network keeps a record of it, it cannot be fraudulent. This technology makes thousands of people who monitor this transaction with the help of powerful computers.
And let’s check it out. For this, whoever does it successfully, some bitcoins are given as a reward. This is called mining of bitcoins.
Actually, thousands of people who work and verify this transaction in code language like a clerk of the bank, and they are called Minors. These people monitor the transaction so that it is not misused.
Why is the trending of cryptocurrency dangerous?
An Unsecured Currency:
- As the entire system of cryptocurrency goes online, its security is weakened and there is a risk of getting hacked.
- The biggest problem of cryptocurrency is online and this is why cryptocurrency is considered as an unsecured currency.
Country’s security concerns:
- It operates outside the ‘main financial system’ and the ‘banking system’. This is why serious questions arise about its source and safety.
- This digital currency has been referred to as fraud, Hawala money, and currency to support terrorist activities.
Control and management problems:
- A major problem related to crypto-currency is also its control and management. As many countries like India have not yet approved it as currency, its management is a big problem.
- Economic experts also believe that investing in it without knowing its technicalities can have huge consequences.
What are the benefits of crypto currency?
- Crypto currency is a digital currency, so fraudulence risk is very rare in it.
- Investing in crypto currency is beneficial because its prices bounce very high quickly. So, it is a good platform for investment.
- Most of the crypto currency wallets are very simple for online shopping and money transactions.
- Crypto currency is not controlled by any authority so there is no risk of demonetization and currency depreciation.
- The crypto currency is based on the block chain so the entire block chain has to be mined to perform any type of transaction.
What are the disadvantages of crypto currency?
- The biggest disadvantage of crypto currency is that it has no physical existence, because it cannot be printed. This means that neither the currency notes can be printed nor any bank account or passbook can be issued.
- There is no country, government or institution to control it, so that there is a huge bounce in its price and sometimes a huge fall.
- It can be easily used in drugs supply, black marketing etc. as it is used between two people only. So, it can also be dangerous
- There is also a danger of hacking it. However, the block chain is not easy to hack because it has complete security arrangements. But if it gets hacked then you can’t even get legal help.
- If you make a transaction by mistake, you cannot get it back.
Crypto currency also has many benefits. The first and the biggest advantage is that due to digital currency there is little scope for fraud.
In cryptocurrency the returns are very high, online shopping makes the transaction easy. There is no regulatory body for crypto currency, so situations like demonetization or currency devaluation do not affect this.
But there can be losses due to huge fluctuations in virtual currencies like Bitcoin.
There have been many occasions in the last five years when Bitcoin fell 40 to 50 percent in a single day without warning. In April 2013, the price of Bitcoin fell by 70% to $ 67 from $ 233 in a single night.
Therefore, there is always a possibility of losses in this currency.