Bitcoin is a decentralized system that means no one can hack this platform because it is the same as hacking the internet. Many miners are working behind the bitcoin network, and you can hack one computer, five, ten, fifty, but you cannot hack all the computers worldwide. Even it is impossible for notorious hackers to hack the bitcoin platform. It comes into existence to solve the domestic currency problems. We use fiat currency in digital form as well as a physical form for daily transactions, and we can sue the lost money in domestic currency, but the question is, can we sue lost bitcoins? So, in this article, we will discuss how the bitcoin system works when you lose bitcoin.
Understand the centralized guarantee:
Before understanding the bitcoin use process, we have to take a look at centralized systems. There are a lot of centralized systems we use in our daily life, but we are not aware of them. The banks and other financial institutions we use are centralized systems, and we daily use their services. There are a lot of benefits of centralized systems; however, they charge fees for holding our funds. We give them our personal information, and they take a guarantee of securing our funds. If the banks get hacked, there is a guarantee that they will pay you. If you transfer the money to the wrong account, then you can refund your money. They provide you with proper guidance or support if you face any problem. There are the following features that the centralized system includes given below:
You can sue for your lost money.
- Banks or other financial institutions will take a guarantee to keep your money secure at some fees.
- Suppose all the money gets stolen from the banks digitally or physically. In that case, they guarantee to give back all the money because it operates under the country’s central bank and the country’s government.
- If you send the funds to the wrong account by mistake, you will get it back by complaining about it to bank support.
- Support will guide you if you have any queries or you get stuck.
Can you get your bitcoin back if you lost it?
Well, the answer is no. You will never get your bitcoin back once you lose it. Bitcoin is a decentralized system, and there is no one controller or manager of bitcoin who will help you get your bitcoin back. No bitcoin support will help you to get your bitcoins back. Instead, there are a lot of miners working behind the bitcoin network who validate the bitcoin transactions by solving complex mathematical problems. Once the transactions get validated and broadcasted to the blockchain, then it is impossible to refund.
The bitcoin user is the actual owner, and there is no other person who can control their bitcoin account. The owner has the private key, and the owner can do anything with their funds, whether he can send or receive or change the wallet or hold or leave the wallet.
On the other hand, third parties like banks are the actual controller of our accounts. They can see our details, they can alter the elements, can send or make our account zero, or they can suspend our account anytime. So they have all the powers, and they take a guarantee for securing our money. That is why banks or other financial systems are secure systems for holding cash, exchanging, or investing money.
How we can lose money:
As we know, bitcoin is a different currency, but there are a lot of bitcoin exchanges that provide third-party services, and in the past few years, some exchanges got hacked, and many people lost all the money they invested in bitcoin. It is because exchanges are a centralized system that means if an exchange gets hacked, all the users will lose all the money, and you cannot sue in court because bitcoin does not support third parties.
When we send bitcoin in exchange for something, we have to wait until the transaction completes, and usually, it takes 10 minutes to validate. For example, suppose you are a seller and want payment in bitcoin. You gave the bitcoin, and he transferred the bitcoin to your wallet but not yet validated; then wait until the transaction is complete; otherwise, he will do double-spending, and you will not receive bitcoin.