April 17, 2018//-There have always been mixed reactions from people about cryptocurrency, especially Bitcoin. Nevertheless, its influence only keeps growing.
In Kenya, for instance, although there have been thousands of claims about Bitcoin’s instability and warnings that it is a scam, risk, and weak investment, the number of people investing in it only keeps growing.
People have quit their office jobs and chosen to work instead on investing in Bitcoin. Even so, the use of Bitcoin in Kenya, as in many other countries, is only limited to the online space primarily because of the support it lacks from the government and financial institutions.
The advisories issued by the Central Bank of Kenya against Bitcoin are excellent examples of the lack of support for Bitcoin and other cryptocurrencies.
The concerns surrounding Bitcoin use
Scams
There are countless scams surrounding Bitcoins such as fake Initial coin offerings (ICOs), pyramid schemes, phony Bitcoin mining and investment portals, counterfeit Bitcoin exchanges and more.
In all these scams you stand to lose something such as actual money as in the case of pyramid schemes and bogus investment portals, cryptocurrency obtained elsewhere as is the case with fake Bitcoin exchanges or processing power as seen with Bitcoin mining scams.
Weak investment
Many factors influence the value of Bitcoin and its strength as an investment. There are those that are concerned about the fluid nature of cryptocurrency where you could gain or lose by the minute.
The unpredictable nature of Bitcoin makes it a risky investment, even for those who choose to go along with it.
Illegal use
Bitcoin provides complete anonymity, which is a concern when exploited. Bitcoin trades are entirely anonymous, and often the only exchanged is a Bitcoin wallet address, which in itself is heavily encrypted and does not offer much in the way of identification. Unfortunately, there is not much that could be done about this issue since it lies with how one chooses to use Bitcoin.
Privacy and security
Bitcoin’s nature as an online currency subjects it to hacks and other unsafe online exploits. The Bitcoin network may be seen as unhackable, but your computer surely is not. Unfortunately, this makes the people using it the targets. The hacks come directly such as targeting one’s Bitcoin wallet or indirectly such as targeting one’s Bitcoin investment or mining as is evidenced by the most massive cryptocurrency hacks in recent history.
No person, government or institution can claim ownership of Bitcoin making it hard to regulate it as a currency. Therefore, it is impossible to follow up on litigation when faced with complications about privacy and security. Even if litigation was possible, Bitcoin’s anonymity poses a challenge.
How to handle the concerns
Aside from the concerns about its investment and illegal use, all other worries lie in the privacy and security of Bitcoin. Therefore, the best way to handle these concerns is by ensuring that you are as knowledgeable as possible about Bitcoin privacy and security. That is where ExpressVPN’s Bitcoin – Privacy and Security eBook comes in.
This book provides you with adequate knowledge on how to keep your wallet and encryption keys safe, how to maintain your privacy and security online while using Bitcoin, how to identify problem areas in your cybersecurity that could increase your vulnerability to hack and scams and such information.
With this information at hand, you can worry less about security and focus more on profitable Bitcoin investment and how to shield yourself from any illegal use of the currency online, which should solve all your concerns about Bitcoin.
By Carol
