©Reuters. This viral Bitcoin post on Reddit can cause severe paranoia
A Reddit user on the U.Today – subreddit claimed to have pulled off a near-miraculous stunt. Within 5 minutes, he guessed two Bitcoin seed phrases and accessed the corresponding wallet, which was empty as expected. This post may come as a shock to some uninitiated Bitcoin users, but there is a fundamental misunderstanding about how seed phrases work.
The seed phrase, which is the core of wallet security, is generated according to BIP39. These consist of 12 to 24 words extracted from a specific list of 2048 words. The last word of the seed phrase is a checksum and acts as a failsafe against entering the wrong word.
If even one word is wrong or the order is jumbled, the checksums won’t match and the wallet software will usually reject the phrase. This makes the task of “guessing” the seed phrase virtually impossible without using unrealistically high computational power.
The author of the post may have created a new wallet address rather than guessing an existing seed phrase. Since there are countless potential combinations of seed phrases, it is statistically certain that many of them will lead to unclaimed wallets. Therefore, the author’s claim, while technically correct, is misleading. They did not decrypt or access other people’s wallets. They inadvertently generated a new, unused wallet.
The BIP39 standard ensures that the probability of randomly generating an active wallet, especially a seed phrase containing funds, is infinitesimal.
Regarding the latest Bitcoin price performance, this shows that BTC is experiencing a consolidation with a slight downward trend. The current trading price is around $42,513, with the moving average acting as a dynamic support and resistance level.
This article was originally published on U.Today