Crypto Fud: Cryptocurrencies Are Not Secure

Crypto Fud: Cryptocurrencies Are Not Secure

Crypto Fud: Cryptocurrencies Are Not Secure

August 8, 2022 at 4:00 pm

by Samuel Mbaki Wanjiku

Blockchain

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Crypto FUD is Fear, Uncertainty, and Doubt and is currently extending to the crypto space. It is an outspread of groundless information to defame the crypto assets and markets. Currently, the crypto space is setting new standards in cyber security by battling some security issues along the way, like system vulnerabilities. One of the leading Crypto FUDs states that bitcoin is not secure. Could that be true?

Claim

Many assumptions about bitcoin scare people from investing and choosing it as they try to convince them that the crypto space is unreliable.

It is not the first time that people have claimed that bitcoin is not secure. This FUD is one of the classic ones; thus, it is hard to pinpoint who instigated it. However, there are some instances of know lawmakers like in the US who have opposed crypto legalization on the grounds of security.

A June 2022  Defense Advanced Research Projects Agency report claimed that crypto is not insecure. The report criticized preens of Centralities like miners and parent companies, citing that they could tumble a blockchain network if they want to.

The Agency’s CEO said:

“Lets say somebody with great top down control of the internet their country starts to interfere with that network.”

“They can rewrite history. They can censor transactions. They can make it so you can’t spend your Bitcoin,” he continued.” It is something people would want to grieve the network.

Rating

Weak

Facts Check

Despite bitcoin being a purely digital currency, there are possibilities of keeping it secure in an offline format. These formats include storing the Bitcoin in cold storage hardware, which reduces the chances of it being stolen by cyber attackers.

In 2021, Bitcoin was gaining legal grounds in most developed countries like the  US, and the UK, which impacts that it’s crucial to check the different laws and guidelines on crypto trading. This development led to increased government efforts to secure the currency and make it more reliable to investors.

Currently,  more advanced storage wallets can assure the security of the Bitcoin currency. This includes Trezor and Ledger hardware wallets, which have robust security features and track records of crypto transactions. 

Another safety feature is the algorithm used in making crypto signatures. Such an algorithm is the Elliptical Curve Digital Signature Algorithm [ECDSA]. This is safe and preferable because it enforces the security of blockchains through cryptography. Therefore, it facilitates public and private keys to enhance transaction confidentiality and transparency. These keys ensure that crypto runs without bias and need for monitoring by any third parties.

The Truth About the Claim

The claim that bitcoin is not secure is one of the other common FUDs. The frequency of cyber-attacks and fraud cases surrounding the crypto space is still insignificant compared to what people are losing in other sectors of the economy. Currently, crypto regulation and education are increasing, keeping people in a safe place in its use.

Several countries have accepted and adopted Bitcoin as legal tender, while most others have allowed it to be used by citizens for payment. Most investors, especially from more developed countries, have increased the use of secure crypto wallets and transaction systems to safeguard their activities.

Cold storage wallets have been used for the past 7 years and are among the most reliable hardware wallets. Also, the FUD surrounding the possibility of miners turning malicious is untrue. Though miners hold a significant stake in running crypto networks, their probability of involvement in sabotaging a network is insignificant. Their influence has not yet hit that extent.

Also, it is tough to perform a 50+1% node attack on Bitcoin and other cryptos. Such an attack has never been coordinated in the history of cryptos and cannot be planned without security agencies noticing them. These facts prove that the claim that crypto is not secure is groundless and is a FUD propagated to discourage investors.

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