A bitcoin transaction is possible with the help of the internet. It is being recognized as a payment getaway but does this mean that no one can get access to the transaction or the information?
The transactions do not stay between the parties involved in the transaction. Cryptocurrencies like bitcoin are built with the help of blockchain technology. For those new to this concept, blockchain technology is a public ledger. The trading process needs a crypto wallet followed by its address. These are not hidden. The crypto wallet is visible to all people.
Many developing and developed economies like Europe, India, the Chinese region, and other countries like the US. But, the scenario was not the same as earlier. The developments are recent and have witnessed a huge hype in less time. Owing to the past of these transactions and less relatability with people in the past, there were many issues related to its tracking. Reports suggest that the leading intelligence agencies spread across the world could not track the transaction no matter how hard they tried.
However, in reality, this might not be the case.
Let’s take up some statistics of the recent past to relate to the same. In 2015, a bitcoin market was popular with the name ‘Silk Road.’ The creator was sentenced to imprisonment for facilitating a market sale of $1 billion while dealing with illegal drugs. The investors of this bitcoin can track the money, and hence, you can use ways of tracing it.
Degree Of Traceability Of Private And Public Cryptocurrencies
You might have an understanding of the degree of traceability of public cryptocurrencies. Now, you might be thinking of another diversion to this. The question emerges whether the private currencies and their transaction can be traced or not.
The traceability is not for public cryptos only. Some private cryptos can be traced to some extent. The traceable ones are as follows:
The traceability is possible with the help of the nature possessed by blockchain technology which is responsible for the conduction of crypto tradings. All the transactions involving blockchain for trading in different kinds of cryptocurrencies are recorded and stored as a part of the public ledger. The name is self-explanatory, and the public ledger can be accessed by one and all.
Many traders can understand that various kinds of digital currencies, or bitcoin for that matter, are used for doing illicit activities only. But, this is not as the mechanism is not ideal for conducting the illicit activity.
Is Bitcoin Anonymous
Many people think that bitcoin is a kind of anonymous digital currency, and the degree is more than any normal currency. The apex banks in various countries do cash transactions and exchanges, which can be used for various purposes.
However, when it comes to cryptocurrency, there is no central authority behind it like the normal currencies of various developed and developing economies across the world. No individual, person, company, association, group, or government influence the bitcoin supply. The trading is done through platforms like bitalpha-ai.org.
Many economies opt for the barter system while dealing with the requirement of goods. It gives rise to the massification of bitcoin for several purposes like payments and buying several things based on customer requirements.
Tracing The Stolen Bitcoin
But, there is one question that arises amid all these things.
The process is difficult if you want to track the barter deals, followed by evaluating the value of the trade and tradeable. And when this occurs, the question of an informal economy in the form of corruption or illegal money comes into the picture.
The same comes into action if the bitcoin is stolen. Here is how you can do it.
You can use your bitcoin wallet to store the bitcoin. Storing and protecting the cryptocurrency is important to understanding tracing and storing.
The bitcoin wallet works as software that becomes a part of your computer. It is home to a private and public key. They help in receiving and sending the bitcoin.
- The public key works as a bank account number that helps initiate the transaction for sending and receiving the bitcoin.
- The private key combines letters and numbers that open as a virtual vault which should not be shared. You can use them for safety and recover the bitcoin if lost.
Now, what are the way and the place for finding it?
Sometimes, if you stop trading for a long time, issues like these are likely to occur. Amid all the routine things, you might forget the date of the wallet or the keys. That’s the point when the search process begins. You can use computer and storage media for the same. Different forms of storage media can be used like the following:
- Hard drives and external hard drives
- Pen drives
However, there is one thing that you need to ensure. These devices can be used only if you have access to private keys. In case you have lost that, recovering lost coins can be a matter of concern. You can begin the search process on both Windows and Mac.
Seed Phrase As A Part Of The Process
The seed phrase is known as the recovery phrase. Another name for the same is a mnemonic phrase. It is a group of words with all the information stored that helps generate the crypto wallet. It comes into the picture when the wallet is created. The phrase can be 12-24 characters or words long and helps create different wallets for different cryptocurrency assets. Hence, you have the advantage of investing in different assets and wallets for the trading process.
Accessing the funds will be possible after entering the phrase that has been set. It would help if you kept it secure as it can help in securing it when it is needed.
Hence, if you have access to the private keys and the bitcoin is lost, you still stand a chance to trace it. The bitcoin trading transaction is a secure process, but still, you should be aware of the keys. Remember the keys and phrases so these issues can be avoided.