How to use Bitcoin and other virtual currencies online without worrying about fraud, scamming, or theft, according to a new study from the National Institute of Standards and Technology.
The study found that while fraud was a major issue for the currency, it was less of a problem for digital currencies like Bitcoin, which can’t be traced to a single person.
“We found that for virtual currencies that are not backed by a single entity, such as bitcoins or other virtual currency, fraud and malware are relatively rare and difficult to detect,” NIST director Robert C. Krulwich said in a statement.
“In some cases, it is not possible to determine the origin or the source of funds, and the value of the funds can be highly volatile.”
The study focused on two digital currencies: Bitcoin, and Ripple, a cryptocurrency that’s backed by the Ripple blockchain.
It found that only 0.1 percent of the bitcoins and other cryptocurrencies tracked by the NIST have been used for fraud, and only a handful of the Ripple coins have been traced back to their creators.
“Ripple was a significant beneficiary of fraud, with a reported average of 0.06 percent of its value being stolen or lost,” the study said.
It also found that most of the cryptocurrency thefts reported by NIST were the result of phishing emails, while a few other attacks have also been attributed to malicious software.
“The most common types of malicious software used to commit fraud are Trojan horses, botnets, and ransomware,” Krulwicksaid.
“These malware packages are designed to target and compromise users with an intent to collect personal data, steal money, or otherwise harm an enterprise.”
It was unclear how much of the NIST study was based on the stolen data from the bitcoin exchange Mt.
Gox, and how much was based off of real-world examples.
Krulzwicks comments on how to deal with fraud: If you’re concerned about your money, it might be a good idea to withdraw money from your account and keep your money on the safe side, but keep in mind that there is a limit to how much money you can withdraw.
The NISTS study also found the average cost of a bitcoin transaction was around $0.16, with some transactions going as low as $0 and others going as high as $1,500.
In addition to the potential for fraud and loss of value, there’s also the issue of anonymity.
The research noted that Bitcoin transactions are difficult to trace, and that even if you’re the person that received the payment, you may not be able to see the transaction if someone else uses it.
“If you have no idea who the recipient is, you can’t trace it back to the actual recipient,” Krulzwin said.
“The fact that the sender’s identity is known by the recipient makes it a much more valuable asset.”
It’s important to note that NIST has only been conducting this research for three months, and it could take a year or two for the NISEV project to fully implement the new security measures.