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The Washington Independent

Do Bitcoin Benefits Overshadow Its Risks?

Do Bitcoin Benefits Overshadow Its Risks?

Bitcoin's journey has been quite interesting as it has ride waves of market volatility and interest of the public, but the main reason behind swings in its price is an actual reality. The crypto world is massive as thousands of cryptocurrencies exist in it and offer significant advantages to users.

Ismaeel Delgado
Oct 12, 2021

Table of Contents

Bitcoin's journey has been quite interesting as it has ride waves of market volatility and interest of the public, but the main reason behind swings in its price is an actual reality. The crypto world is massive as thousands of cryptocurrencies exist in it and offer significant advantages to users. However, the largest and most popular cryptocurrencies don't measure the benefits it promises as a peer-to-peer payment system, store of value, and decentralized network. Bitcoin involves multiple risks. The usage and creation of bitcoin are related to power amongst owners, operators, market opacity, illegal transactions, high energy consumption, and price volatility.

Undoubtedly bitcoin is the most popular cryptocurrency, and its value increased to a great extent in 2020. Today, most people invest in bitcoin, thinking that cryptocurrencies are the future of digital payment systems. Though bitcoin offers multiple benefits to its users simultaneously, there are many risks and online thieves, cyberattacks, and ransomware attacks that may happen anytime. Visit 1K Daily Profit and learn to trade professionally.

Now the main question that arises is, do the merits or benefits of bitcoin overshadow its risks? Let's learn about it in the upcoming paragraphs.

What are the Benefits and Risks of Bitcoin?

Everything has two aspects; the coin has two sides so are the sides of bitcoin. Bitcoin offers some ultimate benefits to its users, but these benefits are likely to get attacked with online security risks. Let us explore the bitcoin features that appeal to crypto enthusiasts but also learn about how these features provide an opportunity for cybercriminals to exploit bitcoin network.

Purchase judgment and user autonomy

As we know, crypto exchanges are online platforms that allow users to buy and sell cryptocurrencies. Crypto exchanges take place on a distributed public ledger known as blockchain to secure bitcoin transactions. It means that anybody can keep track of crypto exchanges online. However, the crypto users who make crypto transactions are anonymous, which means that their identity remains hidden with a randomly generated bitcoin wallet address.

Bitcoin allows users to make anonymous purchases. The purchase discretion offered by bitcoin is quite attractive for users who want to stay hidden, but this is also a plus point for cybercriminals as it helps them carry out malicious activities. The anonymity that the bitcoin network offers allows users to remain hidden, and even if cybercriminals do any illicit activities, it gets impossible to track them. Therefore, cybercriminals aiming at individuals with ransomware, anonymity, and purchase judgment are a plus point for attacking users.

No involvement of middleman

Another main characteristic that attracts newcomers is the autonomy that most digital currencies offer. Bitcoin and other digital currencies offer users more autonomy over their crypto tokens than fiat currencies that the government issues. With digital currencies like bitcoin, users get complete control over their funds without involving any middleman like government or central banks. However, due to the lack of intermediaries, there are higher risks that the bitcoin network allows hackers to take advantage of the chance. For instance, a bitcoin user wants to transfer money to his friends or family worldwide by bypassing fees charged by banks. Furthermore, as discussed, bitcoin transactions are anonymous, and the users get access to the private key to make transactions. Therefore, users need to hold their private keys instead of giving access to keys to third parties.

In such cases, when the user provides access to a private key to a third-party agency, they can easily steal the key and may hack your coin, and you won't be able to recover your coins or track them.

How to protect yourself from cyberattacks?

Create a backup of your data

If ransomware attacks you, it is crucial to have backup copies of your data in either an external hard drive or cloud. In this way, if anyone tries to give your device a ransomware infection, you can easily reinstall the files by wiping your device. Therefore, backup of data is quite crucial as it protects the data.

Do proper research

With the crypto industry, blockchain, and emerging technologies, it is essential to do complete research on your own. Doing research will help you gain knowledge about technology and know about security issues that can arise.

Ismaeel Delgado | Ismaeel Delgado has been working for the Ministry of Information and Communications as a Technical Officer for the past five years. He is an Electronics and Communication Engineer with a Masters in Information and Communication Engineering. He is involved in the review, revision, redesign, and expansion of the required structure, legislation, laws, and technically relevant national planning and program for spectrum management based on ITU radio regulations as a technical officer in the Ministry of Information and Communications' Frequency Management Department.


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