Many people are skeptic when it comes to investing in BTC. Putting money in cryptocurrency seems very risky for many people. There are many reasons for it.
The value of cryptocurrency is very unstable. Money is kept in the electronic wallets, that can be easily hacked. However, there is always a possibility to save digital money from being stolen.
The story hard to believe
The control over transaction with the Bitcoins is very hard to make. All the transaction are organized on the basis of smart contracts. Each transaction needs approvement online.
Electronic money where cryptocurrency is kept is quite easy to access. Modern IT technologies let hackers to steal money online easily. Investors lose Bitcoins very often.
Very often people lose very big sum of money. Not long time ago a company could have lost 1 000 000 BTC, if not its colleague. Here is how it all went:
- A large company’s electronic accounts were hacked. One day a manager of the company received a call from the United States. His colleague confirmed that their e-wallet was hacked.
- The sum that the company that day on its accounts was worth 1 000 000 US dollars. This was enormous money for an entreprise. It was already gone.
- After a quick look at the electronic system a manager understood not everything is lost. Each transaction with cryptocurrency has to be confirmed. That particular transaction worth 1000 000 US dollars was not.
- The next detail a manager paid attention to, was that a system was overloaded at the moment. There was no way that a transaction requested by hackers will be confirmed. It was very important. If a transaction with the cryptocurrency is not confirmed it is saved in the mempool. A mempool is a temporary storage in which similar unconfirmed transactions are kept.
- Each transaction has to be confirmed by miners. For a miner it is more advantageous to confirm a larger transaction of all possible, because they get a commission from the sum of money transferred.
- A manager understood that the only way to save money is to conduct a larger transaction that will be confirmed by miners before a $1 000 000 transaction.
- The manager proposed a bigger commission for the second transaction and redirected the money back to his company’s electronic wallet. He nervously waited what decision miners would take.
- It took some time before money was transferred. However, it happened. A miner transferred cryptocurrency that offered him a larger commission. This saved a company almost 1 000 000 million dollars.
- Later a manager created a special algorithm that will help other companies to tackle similar complicated situations.
This is true story that shows that there is always a possibility to secure your bitcoins. Although it is risky to keep money online, there is still a way to secure your assets.