The Bitcoin is still a new system that involves financial transactions. It is still in the process of testing if it will flourish successfully despite of the never ending attempts from hackers. It is yet to prove to the majority that the system is not flawed and those in the Bitcoin industry need to gain the confidence of the public if they wish to thrive well.
It has many advantages and it seems like the system is not prone to hacking because of the crypto algorithms that go with every transactions. But the hacking incident at Flexcoin is a testament that the Bitcoin system needs a major revamp. As mentioned in one of the Bitcoin news, Bitcoin is safe and secure due to the very technical codes, but the recent hacking incident proved otherwise.
Bitcoin is a digital currency and it is a way of preventing the government and other institutions from looking into one person’s financial account because of its anonymity feature. A user who wishes to open a Bitcoin wallet does not have to include his personal information, including his name, to be given a Bitcoin wallet. Unlike if one intends to open a bank account, private information and signature are required. That is the very reason why users are attracted to use the Bitcoins. The government cannot look into their funds, how they earned their Bitcoins and how they use it.
As mentioned in one of the Bitcoin news, it can be used in illegal trades like drugs because Bitcoin is not regulated by the government. However, when incidents of hacking occurred in Bitcoin banks like at Flexcoin Bitcoin bank, the people have no one to run to. The government cannot protect them.
The Bitcoins placed in a Bitcoin bank has no insurance coverage. Regular banks are regulated by the government, and whatever misdeeds are done, it can be traced by the government. As explained in one of the Bitcoin news, the good thing about Bitcoin is that it is an open source. Anyone is welcome and no names are involved. In the case of a Bitcoin bank, users are on their own, with no one to help them.
This concept of anonymity can lead to anarchy. Why? Because who will back them up when the goings get tough? Users invested money in Bitcoin banks like Flexcoin and in a snap, their money was stolen and the sad part is they cannot retrieve it or demand anything from the Bitcoin bank. The government cannot come into the picture because it is the very institution that Bitcoin is trying to avoid.
But for some believers, hacking can have some positive effects. The security officers in the Bitcoin bank such as Flexcoin can learn how to further develop the system. As stated in one of the Bitcoin news, Bitcoin is still a new concept and more ways need to be done in order for it to have a stronger back bone. They need find out more about the vulnerabilities of the system. More studies and checking of flaws are to be investigated thoroughly in order to come up with a system that is strong and a system that cannot be destroyed by outside threats.
These hackers, as mentioned in one of the Bitcoin news, are always up on their toes to test the vulnerabilities of new system. But if those in the Bitcoin industry will find a way to win over these security threats, then Bitcoin banks may be able to secure their system and not allow hackers to destroy the reputation of Bitcoin.
In one of the Bitcoin news about Flexcoin, the flawed system of the ‘hot wallet’ is the culprit. Now if they can just upgrade the system and not allow hackers to win the war, then digital currency can be the thing of the future.
Bitcoin still has a long way to go. As of now, the system could just vanish into the thin air after the hacking incident at Flexcoin or it can redeem itself in the near future after perfecting the system. No one knows for sure. No one knows if merchants will still accept Bitcoins as a form of payment. No one knows if users will still have the confidence to exchange their money with Bitcoins and risk their hard earned money. No one knows if Bitcoin can really be called the money of the future.…