Can Bitcoin be Hacked? Realistic Doomsday Scenarios
One of the major concerns of Bitcoin investors is whether or not their digital asset has some form of security against hacking.
Can Bitcoin be hacked?
The Bitcoin protocol is immune to hacking attempts. However, there is a chance that in the future, technology may allow people to overcome this barrier. The chance of Bitcoin being hacked is small since Bitcoin evolves together with technology.
Aside from that, cryptocurrency exchanges are now putting more emphasis on the security of the funds on their platform. With the evolution of Decentralized Exchanges, it will slowly become impossible for cybercriminals to steal cryptocurrency funds in any sort of way.
What are the realistic ways that could “shut down” Bitcoin?
Protocol Risk – Bitcoin may have design flaws that can put the protocol at risk. With the development of quantum computing, computations that can break and compromise the cryptographic foundation of the Bitcoin may become a reality.
Exchange Shutdowns – Although Bitcoin is a decentralized digital currency, the exchanges that convert bitcoin into fiat currencies, are still controlled by third parties. These platforms are subject to regulations and closure if imposed by the government. Without the ability to exchange Bitcoin into traditional, government-based currencies, cryptocurrency may be doomed.
Fungibility – The transparent and open nature of the blockchain allows some states to mark certain coins as tainted. If there are regulations that will ban the use of tainted Bitcoins, it will become worthless or lose its fungibility.
Will the government shut down Bitcoin?
In the past few years, there have been many conversations on the topic of banning Bitcoin; especially in the United States. However, doing so would not be in the best interest of governmental institutions, since Bitcoin is a taxable asset and produces a lot of money for all countries that accept its use.
The future of Bitcoin is unpredictable. However, it is worth noting that many countries are now accepting and regulating it. This is because they see that BTC can serve their countries’ best interests.