Is your cryptocurrency investment safe?

When considering Bitcoin, Ethereum or other cryptocurrencies as an investment one might be worried about the volatility or the substance of digital coins at all. Any early investor can smile: In the last few years despite of strong price changes large profits were possible. The last 12 months also showed significant value increase, but it is not a safe bet after all. You have to take some risks and do not worry too much about ups and downs e. g.:

Bitcoin market rate

https://coinmarketcap.com/currencies/bitcoin/

Ethereum market rate

https://coinmarketcap.com/currencies/ethereum/

Are my digital coins save?

Apart from volatility how secure are platforms and coin accounts? This depends on how you store your coins. With large platforms like bitcoin.dekraken.compoloniex.com or with a wallet or software client generating an account for you. Platforms have their own risks, remember the Mt. Gox hack in 2014. In theory any generated account is unique at any time. Can someone else access my account by accident? This is very unlikely, but not impossible.

Finding existing Ethereum accounts

What is the likelihood that a created Ethereum address is in use already? It is very very small:

2^160 or about 1 in 1461501637330902918203684832716283019655932542976

For more detailed information see:

http://ethereum.stackexchange.com/questions/1115/how-do-ethereum-clients-generate-unique-addresses

http://ethereum.stackexchange.com/questions/4299/account-uniqueness-guaranteed

Finding existing Bitcoin accounts

But it does not seem completely impossible to find the account of someone else. This means access by a third party can happen. The following white hat initiative works on proving this with evidence:

https://cointelegraph.com/news/ultimate-white-hat-hacker-large-bitcoin-collider-passes-1000-trillion-addresses

First existing Bitcoin accounts have been found by the Large Bitcoin Collider (LBC):

https://lbc.cryptoguru.org/trophies

The way I see it: With the so called collision access to an existing Bitcoin account has been possible. Find more discussions about this topic on reddit.com.

Conclusion

Never say never… With quantum computers to come even very unlikely events today might be a lot more probable in the future. I am not an expert just a user who would not trust today’s technology without some precaution. I guess this is always a good idea.

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