Is Bitcoin Secure? In Comparison To What?

I recently posted a series of great videos by Khan Academy about Bitcoin which discusses many of the technical features of Bitcoin that make it so secure. The videos help make the rather “techy” topics of cryptography, blockchanges, digital signatures etc somewhat understandable. And then I realized I hadn’t even commented on the recent $45 million digital bank heist through the debit card system.

Anytime someone with knowledge and experience in Bitcoins does a comparison between Bitcoin and credit cards they will usually point out that credit cards were never designed for the Internet and that is Bitcoin’s greatest strength. But this recent heist really had little to do with the Internet but rather the centralized nature of the credit card numbers and their corresponding pin numbers. It was a credit card processor that got infiltrated and gave the crooks what they needed.

So the distributed nature of the block chain (i.e. the Bitcoin transaction ledger) is the defense strategy of Bitcoin. All of the account information is right out there for any and all to see but if they want to do evil they would need such a massive amount of computing power to attack it then the only practical point to attack becomes the individuals.

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