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Why is Bitcoin considered secure?

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Why is Bitcoin considered secure? Bitcoin is the representative of cryptocurrenc

Why is Bitcoin considered secure?

Why is Bitcoin considered secure? Bitcoin is the representative of cryptocurrency. It is the first digital currency that allows peer-to-peer payments between electronic wallets, without the need for trust in third parties or any other centralized entity. Why hold Bitcoin? Because it has characteristics such as immutability, resistance to tampering, and transparency. However, it may not necessarily be a reliable and secure storage method. If someone attempts to entrust their private key to another person, it may be susceptible to attacks.

Due to its anonymity and the flaws in auditability (such as phishing) and the concentration of power among individuals validating transactions using smart contracts, Bitcoin is a secure choice. Although it has powerful functionalities, it still requires technical factors to protect them. First, three things must be taken into consideration: ensuring that user assets are not lost, maintaining digital signatures, and controlling private keys to avoid fraud. Creating one’s own account to handle transactions, ensuring that all information goes through a thorough verification process, and making Bitcoin more decentralized. Additionally, blockchain technology provides a new solution to prevent criminal activities, making it easier for individuals to access funds while reducing risks and costs.

Although many people claim, “We believe Bitcoin is secure,” the reality is different. “It is impossible to achieve.” In fact, like most fiat currencies, “Bitcoin is not real money” is not a simple answer – meaning that Bitcoin cannot meet the requirements of financial institutions. Instead, people hope to use it to do what they want.”

In reality, Bitcoin does not have any inherent functionality and is supported by a set of cryptographic algorithms known as “stateless hash algorithms” that prove their value through computational power. According to a report by CoinMetrics, as of December 2020, there were approximately one million addresses with some form of Bitcoin.

Aside from Bitcoin, there are various types of currencies such as gold, real estate, and other physical items. (Bitcoinist.com)

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