Regardless matter how it was constructed, the house of Bitcoin is more prone to fraud, hackers, and prying eyes than ever. Keep your cash secure with Bitcoin mixers and let your mind rest at ease.
The rising acceptance of Bitcoin is both blessing and a burden for many of its most ardent users. Greater acceptance implies more methods to utilize your Bitcoin. More retailers, more alternatives, more users. More users enable the technology to mature into something greater. To turn itself into that thing that we all need. Better transaction rates, cheaper costs, and updated software.
While the rewards of fame are truly diverse and delightful, there is clearly a disadvantage to the entire globe becoming savvy with Bitcoin. Governments take notice and impose restrictions where, perhaps, there shouldn’t be any. Hackers utilize a superior grasp of blockchain to figure out which account is worth the robbery.
Owning Bitcoin can be fantastic. Especially if you hopped on that ship early. In fact, billionaires were produced nearly overnight when the cryptocurrency reached its height in 2017. This isn’t really a surprise, since most of us have heard these financial fairy tales before. What may shock you is that there have been enormous frauds and hacks in which individuals became bankrupt overnight, too. Many might have been easily averted, just by utilizing Security in Bitcoin mixers and better wallets.
Security in Bitcoin Mixers: 5 Epic Hacks in Bitcoin History
Probably the most renowned cautionary story to any Bitcoin user, the Mt. Gox hack resulted in a loss of over 750,000 BTC. The kicker? The exchange was hacked twice. Once in 2011 and again in 2014. Investors lost all of their assets when the massively popular Japanese exchange fell bankrupt. To this day, not a single refund has been provided.
In 2012, the exchange BitFloor was hacked, with a total loss of 24,000 BTC. What made this attack arguably the most annoying ever, is that it was subsequently revealed that the exchange was putting their unencrypted private keys online as backups. Further showing that exchange-hosted hot wallet full of filthy coins are likely the worst location for you to hold your Bitcoin.
Poloniex was stolen for a big quantity of bitcoin in 2014, the real number of which is still unclear today. The reason why the quantity is unclear is that instead of publishing complete data about the breach, it was determined that the exchange was pooling its user funds. As the robbery targeted that pool, the exchange simply lowered the holdings of every user by 12.3%. If you ever questioned why exchange coins are just as dirty as peer-to-peer- now you know. It’s because coins brought in by anybody might finally wind up as a part of your own batch (more on this later).
Originally formed as an alternative to Mt.Gox, Bitstamp was billed as a safer choice- until they themselves were hacked for 19,000 BTC in 2015. If it doesn’t seem like a lot, that is around $5 million worth by today’s standards. Just when you think it’s safe…
Lastly, we arrive at Bitfinex, yes- the Bitfinex. One of the most popular and highly rated exchanges now gracing the internet. In 2016, the exchange was hacked for 120,000 BTC, the second-largest theft in history. While investors were paid for their loss, it was proven afterward that hackers were able to infiltrate Bitfinex multi-sig wallets- allegedly the most secure hot wallets you can have.
Security in Bitcoin Mixers: Why You Need Bitcoin Mixers
If you’ve learned anything so far, we hope that it’s to hold a little less faith in exchanges and think a little more critically about the safety and security of your bitcoins. The one thing that all of these attacks have in common, other than the fact that they’re all exchanges, is that each and every hack targeted a known holder of high-volume Bitcoin.
You know, lucrative hacks require a lot of time and a metric ton of work. It’s nothing like the movies when a youngster sits down and types furiously for 20 minutes. Hacks involve a ton of preparation and study. Some even take months to pull off. So it’s uncommon that any hacker is going to target anything less than a huge holding.
What does this have to do with Bitcoin mixers? We’re pleased you asked.
By applying blockchain analysis, just about anybody with a modicum of computer understanding can find out where significant money is going to and coming from. Don’t trust us? Do a straightforward Google search on “most well Bitcoin addresses”. Sure enough, you’ll discover multiple lists devoted to showing you which addresses on the blockchain have the greatest balances.
Security in Bitcoin Mixers: When You Need Bitcoin Mixers
It’s not like these wallet holders are displaying their amounts around, so how can someone discover out which ones have huge holdings? By tracking the blockchain traces. In the same way that hackers may find out your personal information by analyzing blockchain analytics, they can also figure out which wallets are worth attacking. The only way to successfully avoid hackers from knowing what you’ve got stored and making you a target is to cut the links between your currency and your wallet address. The only way to achieve that? You guessed it- utilize a Bitcoin mixer.
Not only that but as we delicately indicated before, certain exchanges have a propensity of pooling their client’s hot wallet funds, which means that you have no clue where your coins are coming from. This isn’t only true with exchanges, but true for nearly whenever you acquire bitcoins. In reality, you may mistakenly acquire bitcoins that are being actively surveilled by authorities. Or mistakenly acquire bitcoins that have been used for some truly horrible things, by some really evil individuals. Until you dissolve those blockchain linkages and send your funds via a Bitcoin mixer, you have no clue where their blockchain trail could take you- or might lead to the prying eyes of someone you really don’t want to peek at your stockpile.