Lost Bitcoin wallet key

Bitcoins are an innovative form of digital currency. While the system as a whole can seem like a brilliant invention in today’s tech-driven age, there are many weak points and inherent flaws that mar the idealistic surface of the bitcoin system. Both unscrupulous cyber criminals and concerned government officials are causing snags that may slow bitcoins up or even bring the whole system down.

A bitcoin is a form of digital currency that you can use with participating individuals or businesses anywhere in the world. Transferring bitcoins from one user to another requires no transaction fees or credit card fees. This has made bitcoins a popular option with some small businesses looking for a cheap way to process transactions.

The value of bitcoins changes over time, and your bitcoins can have a different value on different exchanges. The largest bitcoin exchange is Mt. Gox Bitcoins, which began trading at less than $14 in 2013, then rose to a high of over $1, 200 before crashing to $455, and ultimately stabilizing around $900.

Bitcoins are “mined” by computer systems performing complex calculations. The process of mining bitcoins becomes more difficult over time, so the system is set to eventually reach a maximum limit of 21 million bitcoins around the year 2140.

Weaknesses in the System

You can only access your bitcoins with your private key. There is no way to retrieve a lost key. Coins are not linked to your name or personal identity in any way. If you lose your key, you’ve essentially misplaced an equal amount of cash. You can’t go to a bank and ask them to replace the $100 bill you dropped, so you can’t seek assistance for a lost bitcoin key.

Your bitcoins are saved in a virtual wallet that you can store either on your computer or in a cloud. If you store your bitcoins in a cloud, they’re susceptible to online hackers who may access the server that’s holding your virtual money. If you store the bitcoins on your computer, you can lose them to a virus or to your own actions if you mistakenly delete them.

The Lure for Criminals

The bitcoin system has become very popular for criminals due to the fact that these virtual coins are not linked to any personal information. Users can exchange bitcoins with one another without ever trading names, email addresses, or other information. It’s very difficult to trace bitcoins back to someone. Both buyers and sellers who are engaged in illicit activities are sure to see the lure in this type of system.