Cryptocurrency Frequently Asked Questions

I will try my best to answer a few questions so I don’t have to bother myself with posting the same information every time.

Can you reverse a crypto transaction?

A transaction cannot be reversed, it can only be refunded by the person receiving the funds. This means you should take care to do business with people and organizations you know and trust, or who have an established reputation.

Many advanced cryptocurrency users can recall an incident when they failed to double-check their transaction details and accidentally sent funds to the wrong recipient or sent the wrong amount. As unfortunate as it is, cryptocurrency transactions on the Bitcoin, Ethereum, and Bitcoin Cash networks are designed to be irreversible and we have no control over them.

How do I recover from a cryptocurrency scam?

You don’t. At least, you don’t recover your money. I guess you recover by learning from the mistake and doing things more safely in the future. It may be worth asking an accountant if the financial loss on your investment can be offset against other taxable income.

I contacted my bank to see if they could do anything about this situation

The whole point of cryptocurrencies is to take control away from banks.

Local police say it’s impossible to get my money back.

True. For any loss of less than $100000, the police are likely to only hand out advice. It isn’t worth their while to try and investigate most cases where people willingly give their own money to unknown people in faraway countries. Foreign police forces often just ignore any requests for help in such matters. The blockchain is deliberately designed to promote privacy and an effect of this is to make it harder for police to investigate crypto-related crime.

Can someone help me recover my lost money?

No. However, plenty of scammers will offer to help you. Ignore them.

This has made me really frustrated as I invested all my savings.

This is understandable. Sorry for your loss, I hope you are able to put this behind you and move on.

Who controls the Crypto network?

Nobody. Much like no one owns the technology behind email. While developers are improving the software, they can’t force a change in the protocol because all users are free to choose what software and version they use. In order to stay compatible with each other, all users need to use software complying with the same rules. Therefore, all users and developers have a strong incentive to protect this consensus.

Can quantum computers impact the security of cryptocurrency?

Yes, most systems relying on cryptography in general are, including traditional banking systems. However, quantum computers don’t yet exist and probably won’t for a while. In the event that quantum computing could be an imminent threat, the protocol could be upgraded to use post-quantum algorithms. Given the importance that this update would have, it can be safely expected that it would be highly reviewed by developers and adopted by all Bitcoin users.