Hi,
If the blockchain always tells the 'truth' and it's 'impossible' to be hacked because it's a distributed ledger, how is it possible to get hacked? (not counting letting someone have access to your private key).
If my bitcoin is encrypted on the blockchain, and, I'm the only person to have the private key, how is it possible someone else can hack it? My bitcoin is still on the blockchain, right? And I'm the only one with the key!
I've read horror stories on the net about companies going bust (people shitting themsleves when kraken went dark), and reports saying that people could lose bitcoins. How is this possible? The coins are on the blockchain so you can just collect the coins later, with the next, latest and greatest crypto exchange, right? Even if Kraken went bust, pffft.. who cares? Your coins are safe on the blockchain right?
Be interested to hear from the experts..
I think there are basically 2 ways you can lose your Bitcoins:
1) You dont protect your private keys so someone can hack your computer and find the private keys.
2) You keep your Bitcoins on an exchange where someone else controls the private keys. In this situation, the exchange could get hacked, could go out of business, or could just steal your Bitcoins like was done with MtGox and Cryptsy.