Uncovering the Dark Side of Bitcoin

In this article, you’ll learn the negative side of Bitcoin. For those who don’t know, Bitcoin is one form of cryptocurrency in the same way the Euro is one form of government-issued currency.

Bitcoin is a digital currency designed as a medium of exchange that operates independently from a central authority. Due to its decentralization, transactions are quick and nearly anonymous.

Transactions are validated by mining, which involves solving a complicated math problem. As a reward for doing this calculation or mining process, the miner will receive some Bitcoin.

Now, let’s dive in and see some examples of the dark side of Bitcoin.

Irreversible Transactions

A Bitcoin transaction cannot be reversed. Once committed, there is no “takeback”, no “control-Z”.

When a transaction is added to the blockchain, it is confirmed by network participants, or miners, who validate and secure the transaction. Once confirmed, the transaction is permanently recorded on the blockchain, and altering or reversing it becomes impossible.