Bitcoin’s popularity has grown exponentially over time. As its popularity grew, so did its hackers. We know that Bitcoin is a decentralized digital currency that is not controlled by any bank or government. Investors consider Bitcoin to be the best place to invest at the moment. When Bitcoin hit the market it was considered to be very secure, and it was thought that by doing transactions through Bitcoin you could transact completely anonymously and more securely no one can trace your wallet. But after things like bitcoin hacking and bitcoin scamming happened, people started thinking about it a lot. Today in this blog we will learn about what Bitcoin is, how it works, and how is bitcoin hack.
Where there is more profit, there is also risk. As such, Bitcoin is the most demandable and most profitable coin of all time. Most number of investors that Bitcoin has increased and the number of hackers out there. The reason for the rise of so many hackers of Bitcoin is that it is a very valuable digital currency. One of the obstacles of Bitcoin is hacking. So those who want to invest in and trade in digital currencies like Bitcoin, they must have a good understanding of what Bitcoin is and how it works.
Meaning of Bitcoin
Nowadays its time is online based and people are more dependent on online technology. People depend on online for every aspect so they have invented an online based currency called cryptocurrency. Bitcoin is a digital decentralized online currency created in 2009 by an unknown person named Satoshi Nakamoto or his entire team. This is the first ever discovered cryptocurrency. Bitcoin’s network is a peer-to-peer network. Bitcoin is based on a blockchain technology that works like a public ledger. In Bitcoin transactions, the entire transaction story is stored in a block and acts like a chain, which is linked to previous blocks. It is a digital currency that is not like any ordinary currency. It is a secret currency that is not controlled by any central bank or government. From start to finish, Bitcoin is the most popular of all cryptocurrencies. Bitcoin market is higher than all cryptocurrencies and its price and demand is higher. Because its transactions are stored in the blockchain and these transactions can be viewed by anyone through a specific password.
Can Bitcoin be considered hack proof?
The main reason Bitcoin is declared hack-proof is its blockchain technology. Bitcoin transactions do not require any registry or organization. The probability of an attack on the blockchain is considered very low. Miners fixed the error complexed mathematical problems to add a new block to the blockchain. These multiplexed mathematical functions are generated by cryptographic hashes. Updating a bitcoin ledger requires each node in the network to validate a new bitcoin ledger update. A Bitcoin network is very difficult to manipulate because each block of Bitcoin is connected to each other, so it is very impossible to destroy the block data. So at the beginning of the Bitcoin online market, everyone thought it was impossible to hack. But Bitcoin is not hack proof and there are many risks involved in trading with it. You need to know it well so that you can prevent your bitcoins from being hacked. Although there are many types of risks in Bitcoin, it is very difficult to hack.
How a Bitcoin Blockchain Can Be Attacked?
A hacker or his entire team can hack a large chunk of a blockchain called hashrate. If hackers can take over more than 50% of an entire blockchain, they can change the network and it is called a 51% attack. Currently, the level of investment in popular cryptocurrencies like Bitcoin has multiplied and hackers have invented many techniques to hack Bitcoin. The Bitcoin blockchain is currently being hacked by hackers. This allows them to modify transactions that have not yet been confirmed by the blockchain. In this blockchain technology, if a transaction has six confirmations, it is considered a successful Bitcoin transaction. For a complete transaction to take place, the confirmation of the transaction is provided through six blocks, i.e. the six confirmation of the Bitcoin transaction. Meanwhile, hackers can damage bitcoin wallets by sending bitcoins to anonymous addresses.
Where and How Bitcoin Hack Are Organized?
A Bitcoin wallet contains a specific key or password that a user or wallet owner uses to access and transact that wallet. So avoid sharing your key password with anyone so that no one can damage your bitcoin wallet. Let us know about the two most popular Bitcoin hacks:
1. The first one is Bitcoin Wallet Hack
Anyone can create someone else’s Bitcoin key by doing encryption. Therefore, the key that is created and stored in the encryption method is considered a weakness. Now the bottom line is that the private key your wallet gives you to securely access your bitcoin wallet. If you don’t use it carefully then you can get into trouble like wallet hack. That means you control your keys very securely otherwise your bitcoins will not be safe and controllable. You will never give or share your wallet key with anyone else so that someone else can hack or take control of your Bitcoin wallet. Hackers can’t get your wallet key just by sharing it, they can also hack your wallet key through encryption. However, the encryption method is a bit more complex and time-consuming, even then, it is not impossible.
Consider that where most people store their Bitcoin wallet keys and other important documents, those things are more likely to be hacked. Most of the current bitcoin wallet users store the bitcoin wallet key i.e. a specific code or password on their personal phone or computer. Storing your bitcoin wallet keys on these devices is very dangerous as hackers can easily hack your installed software. If you store your wallet keys on these devices and hackers gain access to those devices, they will take your wallet keys. And if they take the wallet key, the thief will steal your bitcoins and you may not get your wallet back, they will change the entire access setup of your wallet. If they change wallet access you could lose your wallet forever with huge losses.
2. The second is exchange hacks
If someone tells you that they will provide maximum security for your wallet, you should think that this is their weak point. This is because more ads mean more problems for them. Exchanges store digital currencies like Bitcoin for liquidity. And it acts like a private key for their customers. Hackers usually target exchanges so they can easily hack your exchange key and send your bitcoins to another anonymous wallet. So those who are using exchange use it more carefully otherwise you will lose bitcoins while doing your exchange.
Many modern hacking tools that hackers have invented nowadays rely on decentralized and blockchain technology like Bitcoin to hack Bitcoin
We know that Bitcoin is a top secret cryptocurrency that is not like any conventional currency. We also know that Bitcoin is the first cryptocurrency to have a fixed market value at its inception. Those who know about Bitcoin also know that the market value of Bitcoin increases a lot over time. Currently there are many types of cryptocurrency that are around 19000. Bitcoin has the highest market value of all these cryptocurrencies, its market value from start to finish is more than any other currency. The market value of one bitcoin is about 35 thousand dollars. So think when it comes to the market its market value is zero but it is accepted by so many people and currently its market value is 35 thousand dollars.
Then hackers will be very active in hacking such a valuable currency because where there is profit, there is also risk. As many investors invest in this digital online currency, hackers become more active in hacking it. Nowadays hackers have invented many modern techniques to hack and scam bitcoins and hacking information is also available in newspapers. It is not a centralized based currency that if there is any problem it will service you from the center. Since there is no fixed center, once you are the victim of a Bitcoin hack or scam, you cannot recover your coin. This is because it is an online based currency that does not exist in the real world like other traditional currencies.
Some of the Bitcoin hacks that have happened in recent years
When Bitcoin first launched the market, many or most users thought that because of Bitcoin’s blockchain technology and cryptography security, no one other than the person owning the wallet or a third party could hack it. Many people think that it was absolutely impossible to hack blockchain technology, but it has been proven true for a while. But as soon as the market value of Bitcoin in the online world increases, its scams start because many people invest in it hoping for higher profits. Today we will discuss some recent Bitcoin exchange hacks:
• MT Gox: It is based in Japan to exchange about 80% of all other currency exchanges, including Bitcoin. This is the biggest hack ever organized in 2014. It looted about 460 million. After this hacking, the price of Bitcoin almost halved and Bitcoin users suffered huge losses. No major Bitcoin or other cryptocurrency hack has been reported since 2014. But in recent times, there have been many individualized Bitcoin hack that harm individual users in a personal way.
• Bitstamp: It is a bitcoin exchange created by Slovenia. It is established in 2015. It occupies about 6% of the entire Bitcoin exchange market. Here almost hackers stole about 19000 bitcoins from many users; this is the reason why this practice stopped all its services around 2015. It is a huge part of Bitcoin exchange currency. It is a massive Bitcoin scam that creates a negative impression on its institution.
• Bitcoinica: It was hacked around 2012 and thieves stole a huge amount of bitcoins. It promises strict security to its users and returns stolen bitcoins even in case of huge losses. But after two months, hackers hacked again and the organizers shut down their website forever. But this website promises that around 50% of previous users will return their holdings. But in the end, this also proved to be impossible. This is because the website owner has become very poor and they have stopped their various services.
How many crypto investors lost their cryptocurrency in 2022?
This year crypto investors lost nearly 4 million of their cryptocurrency to hackers and scammers. We know that Bitcoin is the most popular among all cryptocurrencies and its market value is also very high so it is hacked by hackers. Nowadays people are more interested in investing in this crypto in hopes of higher profits. And if you research well, you will see how many people have personally fallen victim to this cryptocurrency scam. At present, newspapers and TV channels are doing biopic-like campaigns on these to save people from being cheated. In 222 people suffered a lot of losses from these Bitcoin hackers.
How you can keep your Bitcoin safe?
If you are a new Bitcoin user, you should have a good understanding of how to use Bitcoin. This is because if you don’t have a good understanding of what Bitcoin is and how it works, you won’t be able to keep your Bitcoin safe from hackers. You do not share your Bitcoin wallet key with anyone and do not store it on any device such as a phone or computer. Save the password of all these keys in your paper or somewhere else so that virtual hackers will not gain if they hack your device. Avoid storing bitcoin wallet keys with your devices for added security. Now you choose a good quality website to exchange your bitcoins so that they can provide full security of your bitcoins. Recently most of the hackers have been hacking bitcoins while doing bitcoin exchange and mixing. Nevertheless, Bitcoin uses crypto mixers to avoid hacks. And it is also seen that Bitcoin exchange companies pretend to exchange Bitcoins with this scam.
You need to be extra careful while doing bitcoin transactions so that your account is not hacked and your bitcoin wallet is damaged while doing the transaction. Nowadays, Bitcoin developers try their best to avoid falling victim to hacks and scams. And they invent many kinds of technology by using which they can avoid Bitcoin being hacked. Currently, as the market value of Bitcoin is skyrocketing, many people are trying to invest in it in the hope of more profit and along with this, hackers are also becoming more active. So you need to be more careful about its use and security before investing in Bitcoin.