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Why is Bitcoin not afraid of being hacked (Why Bitcoin is not afraid of falling)

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Why is Bitcoin not afraid of being hacked? Why is Bitcoin not afraid of being a

Why is Bitcoin not afraid of being hacked (Why Bitcoin is not afraid of falling)

Why is Bitcoin not afraid of being hacked? Why is Bitcoin not afraid of being attacked? How should we face such problems?

Today, let me explain. What is the reason why Bitcoin is not afraid of being hacked? It is because it allows transactions to be simple, fast, and secure.

Many people say that blockchain technology is revolutionary, but often it does not make sense – people use these things as a medium of exchange or a currency.

In the traditional financial system, all information is public and transparent, and this trust mechanism ensures smooth transactions. When a new technology appears, it can easily trigger a large-scale economic crisis. If there is no intervention of new technology, it can cause massive financial losses and fundamental changes.

Therefore, although many people currently consider blockchain as a disruptive solution, they are not really thinking like that. After all, Bitcoin is an open network space, and anyone can participate in this network through the Internet to earn or create value. Bitcoin does not operate in this way, and some countries have even begun to prohibit the use of Bitcoin to pay their taxes. So for ordinary users, as long as they have a password, they can know if they have cryptocurrency, instead of controlling their private keys in a decentralized manner like now.

In fact, this is the network environment of Bitcoin. Bitcoin was born on November 1, 2009, and it is also the most popular public chain project globally. It was jointly initiated by Bitcoin core developer Michael Wu, with the main purpose of achieving decentralized trust. By establishing smart contracts, it can protect data privacy and prevent forgery, tampering, or destruction of records to avoid the risk of stolen digital assets. Due to the design concept of Bitcoin, recording ledger information in an immutable way has infinite possibilities, greatly enhancing its security. It also provides a foundation for various complex data structures. The Bitcoin protocol is different from other blockchains, and the Bitcoin consensus is determined by a Proof of Stake (PoS) algorithm and generates blocks based on this algorithm. Each new block will generate a random number, and this token will be sent to miners to maintain the specific workload proof of the network. Ultimately, it ensures the normal operation of all blocks. In addition, as the block size becomes larger, mining income will continue to increase. Of course, some companies are actively looking for solutions using blockchain to compensate for their shortcomings. For example, one of the founders of early Bitcoin adopters, Vitalik Buterin, created a new website called “Bitcoin” in 2014. He said, “I like Bitcoin because I want to be part of the future world.” He also proposed a method to make BTC more efficient and reduce the impact of human errors.

Why is Bitcoin not afraid of falling?

Recently, the price of Bitcoin has been falling continuously, and many people think this is due to the manipulation of “whales”. However, this behavior is not simple trading, but investment and management through market sentiment, technical analysis, and other means.

Now let’s understand why it is falling like this.

The first reason is the large market volatility: because many friends are bearish when the market soared recently, and when the market fell back to a low point, some investors thought this plunge was just the manipulation of the main force. Therefore, a large number of retail investors entered the market to buy, but there was no amplification of transaction volume or change in trading volume. In the eyes of these individuals, if there is only a temporary rise followed by a substantial rebound, it will cause such a phenomenon. Of course, some participants said they did not grasp the rhythm of the market and experienced losses as a result.

So what is the next reason? In fact, since last year, many people have shown interest in the blockchain industry, and some even express optimism about the future development prospects of blockchain technology. This includes Chinese internet giants such as Alibaba Group and Tencent. Also, a very important point is that the digital currency market is still relatively early (end of 2017), and it is still in a very emerging stage of development. With the market value of the entire crypto assets reaching historic highs, the number of practitioners in this field is increasing. For those new players who have just entered the industry, they need to be more cautious in order to truly grasp what they have in their hands.

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