Counterfeiting Bitcoin

Nobody ever wishes to be told, this item is counterfeit leave alone if it is money. Just for the know, when it comes to money matters, you will be told that it is fake currency. It may be no surprise that someone you know has been a victim of fake money, not because they set out to defraud but because the money was also handed to them in that form.

When you start your long journey into crypto investment and trading, it may be of interest to know whether there are chances of holding a cache of fake bitcoins, Ethereum, or any altcoins. Because transactions on crypto happen largely online , there no chances exist to hold the money against light to check for security features like people would amusingly do.

A brief about cryptocurrency counterfeiting

Counterfeiting of currency has been in existence since the first currency came to be. As is expected, people have this evil tendency to create a fake version of every genuine thing which is the fate that has befallen currency ever since.

Just to get the whole idea and relate traditional Counterfeiting to what it could be in crypto world. lets learn a little basics. So, counterfeiting a currency is a process whereby an imitated currency is produced without the government’s legal sanction. A currency may have all the security features and look exactly as the legal money but still it is considered fake for having not gone through the set process for recognition as a legal tender.

Ordinarily, a country has a designated money minting and printing firm which is closely monitored and secure by the government. The money once minted or printed, has to go through an elaborate process of registration by the central bank before being issued out as a legit store and measure of value. Counterfeit currencies are anonymously printed and does not go through a regular process of admission into the economy as legal tender.

Maybe cryptocurrency can be counterfeited?

Cryptocurrency is a relatively new kid in the blocks of money markets. So, it is possible and actually easy to think that the same fate that has befallen fiat currency can hit it too. This reasoning is a actually a good starting point for sparking valuable self paced learning about whichever crypto of choice.

Cryptocurrencies have been growing in the recent past, thanks to the growing acceptance and technology. Unlike in the last decade when bitcoin was the dominant crypto, new ones continue to emerge which then raises worries and legitimate concerns about possibility of fake ones.

Nobody ever wants to imagine waking up one day and being told that his bitcoins are counterfeit or maybe being accused of it. Sorry of this talk gives you goose bumps or sends you thinking of rushing to cash out your bitcoins. One last thing before you rethink about the legitimacy of your coins is that the technology that supports crypto cannot allow counterfeiting to take place. The process of validating a crypto requires a series of computers connected by powerful technology that does not allow malicious activity.

If anything, cryptocurrencies get their prestige position because of the difficulty to be counterfeited. You can be sure that whatever crypto is lying in your account at the moment are legit and valuable. Nobody will approach you whatsoever to accuse of holding counterfeits. No governments or such agencies are involved in the crypto ecosystem which tells why it impossible to counterfeit.

Bitcoin cannot be Counterfeited, but it Can Be Copied

Cryptocurrencies being virtual currencies is an indication that they can be counterfeited. In any digital environment, anything may be cracked or even copied. The same things that happen to books, films, and music that are pirated also take place in the cryptocurrency world. However, in the case of Bitcoin, it is a bit unique. 

It is important to note that even though cryptocurrencies can be copied, it is very difficult to counterfeit them. Crypto is derived from the word “cryptography,” which refers to a process making it almost impossible to counterfeit digital currencies, including Ethereum and Bitcoin. The way the system of bitcoin is structured, one cannot double-spend or even generate over one transaction just in one operation. Therefore, the system eliminates the issue of counterfeiting. 

The Cryptocurrency Market is Highly Inflated 

The cryptocurrency market is overinflated. Thus, because of the issue of market manipulation, there are several bitcoin exchange-traded funds that have been held up for regulatory approval. Bitcoin has been regarded as a Ponzi scheme mainly because the people who joined the pyramid at an earlier stage are the ones who highly benefit. 

Bitcoin currency has never been hacked, and there are no chances that it may ever get hacked. Initially, in 2010, Wences Casares, an entrepreneur, heard about the name Bitcoin but was not convinced regarding its claim. During those times, Bitcoin seemed to be a good cryptocurrency though it had some vulnerabilities. 

Wences Casares hired two security teams whom he paid about $500 000 so that they could break the Bitcoin system. Unfortunately, they were unsuccessful after six months of serious investigations. According to them, the system is well built, which they could not hack. The issue made him a great supporter of Bitcoin. 

The story is an indication that even though people have tried to counterfeit currencies such as bitcoin, they have been unsuccessful in their operations. Since the launch of Bitcoin, it has been attacked over 500 times, and all the operations have been unsuccessful. 

Cryptocurrencies such as Bitcoin Cannot Be Counterfeited as they use Distributed Ledger 

Cryptocurrencies use distributed ledgers, which is blockchain technology. This technology means that an individual has a copy of every individual’s transaction history. Besides, the other bitcoin users have the same. Lit means that when every individual has a copy, then they all agree with each other regarding what each person owns. 

There is no person who has the authority to change the transaction history. Besides, it cannot be done on the computers of another individual. However, they may locally change it. If they choose this option, the transaction will be refused because the overall network consensus does not tally with their copy. 

There are some things that make it difficult for bitcoin to be counterfeited. First, it is because it is not a physical currency. Bitcoin is a virtual currency even though it has all properties of good money. Moreover, it has attracted attention, including being a divisible medium of storing value, scarce, and money for the peer-to-peer transaction. 

There is nothing that is preventing individuals across the globe from counterfeiting the various digital currencies. Currently, there are over 2000 cryptos. Unfortunately, most of them are scams or even copies of bitcoin. It means that even though it is difficult to counterfeit Bitcoin, it can be copied. 

Having a Wallet does not mean Having an Actual Bitcoin

One of the main reasons why Bitcoin cannot be counterfeited is because when one has a wallet on the phone with Bitcoin, then that does not mean that they have actual Bitcoin on the phone. It is different from a banking card or even a credit card. The wallet has a password or rather private keys for one to be able to spend Bitcoin. 

The Bitcoin cryptocurrency is unique, and that is the reason it has not been hacked. An individual’s Bitcoin wallet has the capacity to read the blockchain. Therefore, when online, the wallet looks on the blockchain to read one’s Bitcoin value. It is almost the same way the bank card reads the balance on the bank account. 

In the case of a bank, to be able to change your balance, you must hack the computer system of the bank. The process is considered to be much easier as compared to hacking the Bitcoin blockchain. Therefore, hacking Bitcoin is next to impossible. Unfortunately, if one loses the private key, then the coins are lost. The only possible way a person can steal your Bitcoin is by having access to your private keys. 

Many people have been asking themselves whether there is a possibility of counterfeiting Bitcoin. The answer can be both a yes and a no. First, it is a no as it is so difficult for an individual to counterfeit. Secondly, it can be a yes since there are high chances of making a token in another Blockchain than referred to it as Bitcoin. Later, one can sell it to ignorant individuals. 

Bitcoin Cannot Be Counterfeited Because of the Way Blockchain Technology Works

In recording any of the transactions in Bitcoin, the process is based on Blockchain technology. The electronic ledger has specific traits, including it being distributed, permanent, unique, global, and public. Besides, the transactions taking place in Bitcoin are usually grouped into blocks. Each of the blocks is also linked to the predecessor in a sequential and chronological manner.