Expat Secrets by Mikkel Thorup

Author:Mikkel Thorup [Thorup, Mikkel]
Language: eng
Format: epub
Published: 2018-12-04T05:00:00+00:00

Digital Assets

“Bitcoin is the most stellar and most useful system of mutual trust ever devised.”

- Santosh Kalwar

Alright, let’s move from the traditional and stable, to the new and volatile. Let’s talk about digital assets.Anyone who’s followed the news lately will know that I’m referring to cryptocurrencies and blockchain-powered technologies here. So over the past couple of years, I’m sure you’ve seen story after story about Bitcoin investors who struck millions overnight after buying in when the currency was worth cents on the dollar. Despite the media frenzy it’s important to remember that Bitcoin is just one amongst thousands of cryptocurrencies and that there are actually many, many different options out there. As an investor, I would argue that the most interesting thing about cryptocurrencies isn’t even the actual asset itself but the technology that underlies it, which in most instances is the Blockchain.

Your Cryptocurrency is not in Danger of Being Hacked

I know that there has been a lot said about the safety and security of cryptocurrencies in recent months, but one thing I want to make absolutely clear here is that cryptocurrencies cannot be hacked; nor can they be duplicated, faked, or fraudulently exchanged. In other words, they are completely fraud-proof. I actually took an extremely interesting online course on blockchain technology from MIT, where the University’s professor of Mathematics basically broke down how difficult it would be to actually manually duplicate a cryptocurrency transaction.

Without going too far into the science behind the topic, the basic gist of his argument came down to this. If you took every computer that has ever been built by human beings, and you turned them on, and you ran them around the clock, for as long as human beings have been on planet Earth, you would still be unable to break a cryptocurrency code. The level, the suffix, the FIS, the sophistication for this blockchain technology is so strong that it’s virtually impossible to ever hack or crack this code.

But Your Wallet Might Be

So just keep in mind, the next time you hear about cryptocurrency being hacked it’s not because of any sort of failing in the technology itself. What’s actually happening is that the exchange which holds the coins or the wallets that store the coins has been hacked. Now, while this is generally down to lax security measures you do have to acknowledge that these sorts of security breaches occur at any point where money is centralized. I mean, there have been just as many incidents where bank accounts in giant regulated institutions like the Bank of America or Citibank have been successfully breached by hackers.

Why You Should Never Hold Money in a Cryptocurrency Exchange

My first recommendation to anyone looking to get into cryptocurrencies is, never leave your coins on an exchange no matter how legitimate it might seem. Just ask investors who lost out during the infamous implosion of MtGox. Back in 2014, MtGox was by far the most prominent cryptocurrency trading post around. From 2011 onwards, the Japanese exchange hosted 80% of all Bitcoin transactions in the world, and it was looking set to grow even bigger.

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.