Bitcoin and other cryptocurrencies always top the headlines because of their volatile market. But do you know that cryptocurrencies are more secure in comparison to other financial systems? You must have read many articles stating bitcoin is volatile, but here is this article, you’ll learn how bitcoin is safe, working, and what you can do to make sure your cryptocurrencies are safe. Buy bitcoin from Bitcoin Era trading App and choose the best platform to store your coins.
We will start by learning the basics of bitcoin.
What is Bitcoin?
Bitcoin is a cryptocurrency or a digital currency created by a mysterious programmer named Satoshi Nakamoto in 2009. It is a decentralized digital currency that works on a peer-to-peer network known as the blockchain. This distributed ledger records all transactions of bitcoin without any approval of any central authority. Bitcoin is a digital currency that only exists digitally, and its value keeps on fluctuating according to the demand and supply in the market.
When bitcoin was launched, it had no worth, and the first real purchase made with bitcoins was of two pizzas. Laszlo Hanyecz made the first purchase with bitcoin, where he purchased two pizzas for 10,000 bitcoins. At that time, bitcoin’s value was negligible, whereas today, bitcoin is at its peak.
Bitcoin was the first cryptocurrency, and the development of the first cryptocurrency has inspired many developers, which led to the development of other cryptocurrencies like Dogecoin, Ethereum, Litecoin, Cardano, and more. It must be noted that cryptocurrency and blockchain technology is extremely secure.
Why is Bitcoin considered a safe crypto asset?
Bitcoin network is mostly safe as blockchain technology is the backbone of the network. The entire bitcoin network is built on highly secure blockchain technology. Along with having blockchain as the backbone, bitcoin is also permissionless, decentralized, cryptographic, and public.
For investment purposes, bitcoin isn’t highly secure because of its volatile and unpredictable market. But here are some reasons that explain why bitcoin is considered a safe crypto asset that includes:
Network is public
The public doesn’t sound safe for some people, but bitcoin’s distributed ledger is transparent, which means all the transactions recorded in it are viewable. The transactions are public to those people also who remain anonymous in the bitcoin network. Because of a public network, it is next to impossible for anyone to scam or cheat the system or network. All the bitcoin data is available publicly, and there is not left for hackers to hack into the network.
In comparison with other data breaches of companies and organizations, bitcoin sound safe because it is public. No personal information is required to be shared with exchanges or wallets that store your crypto coins. No share of information means any leakage of information which is a great thing.
The thing that makes bitcoin secure is cryptography. As we have read, the bitcoin network is backed by blockchain technology. This is an improved technology that uses cryptography and other security concepts to protect the entire network. Blockchain works by involving thousands of volunteers, and these volunteers do the work of signing the hashes that verify and validate bitcoin transactions by using cryptographic principles. This is what makes the network secure, and also it makes the transactions irreversible.
The distributed network of bitcoin has more than thousands of nodes worldwide, and these nodes keep track of bitcoin transactions that take place on the system every second. The work of all the nodes is to keep a check and make sure that no manipulation or alteration is done to the information.
Because all nodes make sure that information is correct, it doesn’t even provide a chance to anyone to hack the server. Even if hackers try to steal one of the servers, other servers and nodes can prevent them from doing so unless the hacker controls over 51% of the nodes, which is next to impossible.
Bitcoin is a decentralized network and public, which means the network has provided you the authority to control your funds. There is no central authority required as the bitcoin network is public or open to everyone. It is a permissionless network that doesn’t require any permission to complete work from anyone.