Bitcoin Guide - Beware of losing Bitcoins #Part4
Bitcoin Guide - Beware of losing Bitcoins #Part4

By Roberto D. | CryptoFarm | 21 Feb 2020


The software that we use to keep our Bitcoins (wallet) obviously masks all the complexities related to transactions, but it is important to remember to keep the private key secret and to have it recognized in case there was the need to recover your wallet to avoid lose their BTC.

The loss of Bitcoins is one of the main problems of this currency.
For example, in a transaction 2600 BTC were lost precisely because the recipient address was incorrectly written.
Since there are no credit cards or banks behind Bitcoins, any personal mistake can permanently lose your BTC.

The BTCs we lose not only disappear from our account but more generally from the entire Bitcoin economy.
If we lose our private key, as mentioned, all the BTC corresponding to its public address will be lost forever!

The breakdown of hard drives is on the agenda and that backups are done little and badly, it is expected that the Bitcoin economy will be deflationary in the future (when new BTCs will no longer be created).

Why can we operate with Bitcoin in complete anonymity?

If you access the Internet using a TOR network that hides your IP address, you can use BTC anonymously without anything but your public address being ever revealed.
The public address will however keep track of all the transactions made since they are stored in every node of the Bitcoin network.

Theoretically you can create public keys for each transaction you want to receive, even if you can inadvertently connect these keys.

In the figure below you can see 6 addresses that send BTCs in a given transaction and, regardless of whether they are different addresses, all of these remain connected indirectly:

351665157-ffa98afaeec56305d252dbf98395aed8670a420b508df1696746cc8c9b25be9d.png

The sender actually proved that he has all those addresses thanks to the digital signature that is used to unlock them (last column on the right).

 


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Roberto D.
Roberto D.

Born in Italy, I live in Italy, passionate about cryptocurrencies since I discovered ethereum in 2015


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