Bitcoin is widely credited as the source that made cryptocurrency mainstream. Less than five years ago, it used to be valued at less than $1,000, whereas only a couple of months ago, it reached its highest high of $69,000, showcasing its popularity in the crypto world.
However, today in this article, we would like to analyze the question of the hour, “Is Bitcoin The Safest Cryptocurrency?”. The answer to that question is “it depends”. It depends on the spectrum of safety you are talking about.
Spectrums of Bitcoin Safety
If you are wondering is Bitcoin the safest Cryptocurrency in terms of investment, then no, Bitcoin is not the safest Cryptocurrency. That title would go to USD coin as it is the closest to traditional currency and offers stability, unlike any other cryptocurrency.
Bitcoin, in this facet, is highly volatile, and its value can fluctuate like the example we have mentioned above. From an investment point of view, Bitcoin is a gamble that can either improve your financial condition drastically or can lose it all for you because of the following reasons:
Bitcoin is Accessible 24/7
The traditional stock market opens and closes at a specific time. Once the day is over, whatever the fluctuation was is settled. However, this isn’t the case with Bitcoin, as it is accessible 24/7 providing it greater room to fluctuate drastically and not being a safe investment for you.
Supply & Demand
Another reason Bitcoin can touch the sky and ground on the same day is the supply and demand and people’s sentiments towards them. Bitcoin only has a specific number of coins in circulation, and sometimes they can be in high demand resulting in rising rates, whereas sometimes everyone is looking to get rid of it, which can crash its value.
Lack of Regulation
The final reason for Bitcoin’s volatility is the lack of regulations surrounding the cryptocurrency. Bitcoin does not have to follow any rules so anything goes here because there is no regulatory body.
When it comes to the safety and security of Bitcoin, it’s the logical to think if your wallet can be hacked, or if your money can be stolen from you. Due to Blockchain technology, Bitcoin is considered one of the safest cryptocurrencies for the following reasons:
Cryptography of Bitcoin
Bitcoin uses Blockchain technology to operate, and this technology is the safest technology available because it uses cryptography. Cryptography ensures your data is protected and cannot be compromised at any stage. It secures a transaction taking place between two nodes in a Blockchain network.
All Bitcoin transaction data is available publicly, which results in tracking all the information and cheating the system is not a possibility. Bitcoin cryptography ensures just the transaction is recorded and available, and none of the personal data of the individuals involved; hence no hacking could ever occur.
The most prominent reason why Bitcoin’s the safest cryptocurrency technology is that it is decentralized. Being decentralized provides it with a couple of benefits that are too good to ignore. The first is that there is no regulatory body whose policy they have to follow.
Secondly, they are connected through tens of thousands of systems and backup systems. If one is compromised, the second immediately replaces them. This makes hacking the technology impossible. You need to hack 51% to gain control which is impossible as the networks are distributed worldwide.
Bitcoin is, without a doubt, the most well-known Cryptocurrency. However, through this article, we tried to find out if it is the safest or not, and it turns out it has different spectrums of safety. As a technology, it is the safest technology. But as an investment, it is a volatile investment which you should only partake in if you can afford to lose it all.