Bitcoin Security

Computer security

It is true that extra security needs to be taken to stop bitcoins from being stolen, but the same problem exists for automobiles. I don’t think people should not buy or use automobiles because they might get stolen. People could only use trains and buses so they don’t have to worry about their car being stolen, but a car can be much more convenient than a bus or train. Similarly, bitcoins can be much more convenient than cash or credit cards, however, it is more risky to use Bitoin for now, just like having an automobile is more risky than a train or bus. Credit cards and cash are much more limiting than Bitcoin and credit cards are also more expensive. Buses and trains are typically cheaper than cars, but are very limiting. If the proper precautions are taken, than it is nearly impossible for people to have their bitcoins stolen. There is always a possibility that any possession can be stolen from you! There is a learning curve with Bitcoin, but the advantages for individuals and the collective society to use Bitcoin outweigh the risks that come with using it; the risks of not using Bitcoin are also prevalent – try to make a purchase online for a small amount with your credit card or checking account and you may end up going through a lot of hassles to recover from identity fraud. Bitcoin eliminates that risk!

For Mt. Gox, it was concluded that it was an inside job by the owners of the company. They stole nearly $500,000,000.00 worth of bitcoins at the time. The price may have been artificially inflated by bots during that period so the actual value might be less. We are in the early stages like in the wild west with gold – there will be some high profile hacks and lots of little hacks. In the wild west, there were several notable high profile robberies and many small robberies of gold. Over time, the theft of gold was pretty much eliminated, but it does occasionally happen now – people get robbed for their necklaces and jewelry stores get robbed, but there are rarely any large scale gold heists anymore.