Is it possible to hack into cryptocurrencies like Bitcoin? Why?
No, it is not possible to hack into cryptocurrencies like Bitcoin(BTC).
The first to come into the spotlight, Bitcoin is a decentralized, blockchain based cryptocurrency. So to hack the block chain is merely not possible due to the high security and technology. It can be transferred from person to person, without the use of a financial institution, such as a bank. This is called a peer-to-peer transaction and eliminates the need of a middle-man. All transactions are recorded and stored in a ‘ledger’, which is the blockchain. These are not stored in a single server but are distributed across the network, thus making them decentralized, and safe from unauthorized modifications.
Bitcoin (BTC) is probably the most popular cryptocurrency and tops the list of anyone investing in cryptocurrencies presently. It’s a cryptocurrency and is currently as an established worldwide payment system.
Nice article. While bitcoin the protocol and bitcoin the peer 2 peer system can NOT be hacked. The price of bitcoin CAN be hacked. How? The answer is 3rd party exchanges. They can engage in what is called Naked Short Selling. Meaning that they can short (or long) the price of bitcoin without proving that they hold any bitcoin. Here is an example. If you put 1,000 dollars onto a 3rd party exchange (like coinbase, this is an example not calling out coinbase), and never pull it out of the exchange they can naked short bitcoin. What they can do, is use your capital and pretend that you have that bitcoin. They can use that capital and "sell" bitcoin so that the price goes down. This is a practice called fractional reserve "banking" i guess its fractional reserve "bitcoining" as well. If everyone were to pull their money off of the exchanges (proof of keys) then there could be a "run" on the exchange. If they don't actually hold your bitcoin/money they would go belly up, and you would be shit out of luck. Get your money off of the exchanges and into a wallet where YOU hold the private keys. Good day!