Bitcoin is the first cryptocurrency to appear as a digital currency. There were many challenges in its development and spread, but Bitcoin has overcome them and is becoming a new means of storing value for some people. But is Bitcoin really safe?
Bitcoin's security is supported by the "blockchain" and "mining." The blockchain makes transaction records public to all participants, making them impossible to tamper with. Meanwhile, mining is the process of authenticating Bitcoin transactions, performing calculations, and approving the addition of new blocks to the blockchain. When you mine, you receive newly issued Bitcoins as a reward. Because a large amount of computing power is put into this mining, it is practically impossible for malicious hackers to take over the Bitcoin network and conduct fraudulent transactions. As a result, the safety of Bitcoin transactions is guaranteed. (For more information, see " What is Bitcoin Mining? ")
On the other hand, legal tender currencies such as the Japanese Yen and the US Dollar are managed by countries and central banks. At first glance, this seems to guarantee safety, but if a country or central bank adopts the wrong policy, the value of the currency can fall significantly. For example, in Argentina and Turkey, the value of their currencies fell significantly in the past as a result of incorrect monetary policies.
Bitcoin can be said to be safe in this sense, but on the other hand, since it is not managed by a country or central bank, each person who owns Bitcoin is required to take strong security measures. Since neither a country nor a central bank can guarantee safety, the responsibility falls on you. To store Bitcoin safely and protect your personal wallet from hackers, we recommend managing passwords, updating security, and using a hardware wallet if possible.
If you are not confident in your own security, you can use the wallet provided by the cryptocurrency exchange (for more information, see " What is the recommended wallet for storing Bitcoin? ").
Bitcoin's unique security system ensures that transactions are highly secure. However, to enjoy this security, it is important for users to be security conscious.