The meteoric rise of Bitcoin last year took the world by storm, and exposed the general public to the larger world of cryptocurrencies. It has led to much speculation that cryptocurrencies could go mainstream in the near future, and perhaps even replace national fiat currencies some day. But there remain significant obstacles in terms of security before this can ever become a reality.
To understand why, let’s look at the forms of electronic transactions that have succeeded so far. Over the decades, the public has become accustomed to the idea of electronic payment systems, and they expect a certain level of service and reliability along with them. Whether it’s PayPal or just swiping a credit card, the transaction usually goes through smoothy, and when there is a problem, it’s usually fairly simple to resolve.
Let’s say John opens his wallet and realizes his credit card is no longer there. He calls the credit card company, and they’ll cancel the old card for him and send a replacement. If there are unauthorized charges, he can dispute them. The point is that there is a phone number he can call, and customer service personnel standing by to detect fraud, reverse unauthorized charges, and assist with related problems.
Now compare this to using cash. Paper money offers more anonymity, and is perhaps simpler to use. But cash is also intrinsically riskier than electronic payment methods. If John loses a $20 bill on the way home from work, that’s it, it’s gone. Likewise if someone steals it from his pocket or office drawer. Everyone can relate to the frustration of losing cash. You can’t call the bank and expect them to bring cash to your house to replace the paper notes you lost.
Because of these fundamental differences between cash and electronic payment systems, the public has internalized the belief that electronic payment methods are safer. This belief however is incompatible with the risk involved with cryptocurrencies.
Many people don’t realise that using cryptocurrencies like Bitcoin is a lot more like using cash than a credit card, and at end of the day, that is exactly what cryptocurrencies are- digital cash running on decentralised networks.
While the level of encryption built-in to cryptocurrencies means your wallet’s private key cannot be broken by hackers, if the key itself is stolen, it’s now a race against time to try to regain access to your wallet and transfer the funds out before the thief does. If you’re not fast enough, it’s game over. That money is gone forever.
But what if you lose your private key instead? Private keys are long and complicated by design. You’re not going to remember it, and if you don’t have it backed up somewhere safe, you have a serious problem on your hands. Many wallets have back-up phrases that must be entered in a certain combination to regain access to the lost funds, but if you lose that too, you’re toast.
All you’ll be left with is the agony of knowing that your cryptocurrency holdings are inaccessible, frozen in the blockchain ecosystem. Forever.
Do the scenarios described here freak you out? We don’t blame you. It freaks US out, and we live and breathe this stuff.
The level of risk- the level of stress…it’s just too much.
The bottom line is that cryptocurrencies are ever going to gain mainstream adoption, the level of risk MUST be reduced.
The thought of losing your hard-earned money because of an honest mistake- one that you perhaps didn’t even realize you made- is enough to convince many people and businesses that cryptocurrency just isn’t for them. Which is sad, since cryptocurrencies represent one of the greatest investment opportunities in a generation, and in a lot of ways, the greatest overall financial change for the better in centuries.
But ordinary people and businesses will not (and should not) need to take on such enormous levels of risk to participate in the cryptocurrency revolution.
This is exactly the problem we set out to solve with our with our secure wallets, cold storage and secure custody solutions with Baanx.
How Baanx is Redefining Crypto Security
At Baanx we have a vision to increase the safety and accessibility of cryptocurrencies and banking services to people around the world, and we knew that improving security and risk reduction had to be a part of that.
Our first step in achieving this is to protect your crypto assets by building the most secure wallet on the market. Our team has a combined century of fintech and banking experience, developing solutions for VISA, Mastercard, Bank of America, the London Stock Exchange, and more.
The Baanx mobile app and wallet offer peerless levels of protection against hacking, and insurance against no-fault losses. In addition to this, we offer secure cold storage for our customer’s funds.
The majority of client funds will be stored safely offline in an ex-military server bunker protected by biometric and multi-signature access. All our internal and external security protocols meet world-class standards, and every employee we bring on to our team undergoes comprehensive background checks. Only the highest standards of integrity, security and competence make the cut.
Finally, our secure custody service relieves you of the burden of having to remember that complicated private key. Our KYC-compliant protocols can help you regain access to your funds if you lose your key, so you’llnever have to worry about losing your cryptocurrency holdings again.
What does this all mean for you? It means that you can have true peace of mind- something that many crypto investors haven’t had in years.
The Baanx mobile app is coming very soon for Android and iOS. Learn more about the app, our security features, and how we’re writing a new chapter in fintech and banking history at Baanx.com