Can Using System like Bitcoin Help Protect Identity Theft? – If you are a regular Internet user, and you have a subscription to one of the quality Internet deal such as one of the Charter Spectrum Internet Price, you would be aware of the concept of virtual currencies. People have been investing a lot in the virtual currencies and Bitcoin is perhaps the most famous of them all. When we talk about virtual currencies, e-commerce frauds and identity thefts come to mind. Do you know that identity thefts and frauds cost billions of dollars every year and these losses are on a constant rise, especially in recent years? Since not all of us are well-aware about the concept of virtual currencies, so, before we discuss how the system of virtual currencies such as Bitcoin help in protecting identity theft, let’s know what exactly is Bitcoin.
What exactly is Bitcoin?
Bitcoin is a virtual and new currency, first introduced in 2009. Interestingly, the person who invented it is unknown and used a code-name Satoshi Nakamoto. While using Bitcoin, transactions do not involve any middle-men or banks. Bitcoin can be used as normal currency too, such as to book hotels on sites like Expedia, or shop furniture in sites like Overstock, and to buy Xbox games, and so on. But the hype about Bitcoin came from the concept of investing and trading it to be richer. Back in 2017, the price of bitcoin actually skyrocketed beyond thousands.
You can use Bitcoins to anonymously buy merchandise. Furthermore, international payments become easier and cheaper, and the reason is that bitcoins are not subject to regulation, and are not tied to a particular country. Majority of people buy bitcoins from the perspective of an investment and hope that they rise in values.
As mentioned already, identity theft is costing fortunes each year. Luckily, the technical design of Bitcoin and some of the most powerful features such as multi-sig, both sellers and buyers have convenient alternatives to avoid the likelihood of indulging and involving in an identity fraud and theft. In the United States alone, about 17.6 million individuals became victims of identity theft in the year 2014. The common forms of misuse and manipulated information were credit cards and bank accounts. It may be surprising for some people but is actually not, as credit cards, bank accounts are essentially tied to the names of the owners, the numbers associated with bank accounts, and credit cards do not change. You can check online yearly statistics of ever-escalating frauds and identity thefts through the years. And this security barrier is exactly why Bitcoin received this massive popularity.
Why is Bitcoin Different?
Bitcoin actually works differently. The numerical figures that give access to bitcoins are essentially not shared publicly, and most importantly, they don’t go to any databases. There is no store, business, or bank involved that needs to be trusted with your Bitcoin information, unlike bank accounts and credit cards. And hence, there is no data at all for cybercriminals to steal. And then again, since it’s anonymously associated and not tied directly to one’s identity, it makes things protected. Buyers feel assured and secure that their purchases are not going to increase the likelihood of any sort of identity theft. Cut the long story short, identity theft through Bitcoin transactions is considered and is actually practically impossible.
Current and Future Scenario
People are beginning to notice the exceptional potential that Bitcoin has in making identity theft absolutely impossible. People who already have experienced any sort of identity theft and fraud are now more interested in using alternatives like Bitcoin.
Although every bitcoin transaction has a public log where it is recorded, the names of sellers and buyers are never publicized or revealed. Bitcoin facilitates its users to buy and sell anything while keeping their transaction private. Tracking any payments and transactions is practically impossible with Bitcoin. But this benefit can also be used for disadvantages, such as spending on online shopping of drugs, prohibited products, or other illegal activities.
As far as the future is concerned, it is not possible for anyone to claim about the future of Bitcoin. In most of the countries, it is unregulated but now, some countries, for instance, China, Japan, and Australia have started weighing laws and regulations. This makes sense because Governments are rightly concerned about steady taxation and most importantly lacking control on the virtual currencies.
Even though such drawbacks are associated with Bitcoin but still no one can deny the immense potential that it has. To read more about this amazing and interesting virtual currency, check whether you are in Charter Spectrum Service Area, and subscribe to a quality Internet package.
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