Saturday, January 6, 2018

With the cryptocurrency market now nearly a $1 trillion business, could the growing rise of cyberhacking in this unregulated arena kill this golden goose?

Cryptocurrency advocates will stomp up and down to protect their belief that cryptocurrencies are isolated from cyberhacking through their stringent encrypted processes.  But as we know from the Mt. Gox bankruptcy, last year's Ransomware virus, and a more recent theft in a South Korean exchange, cyber crime is not limited to hackers simply trying to break into people's Bitcoin wallets.

In fact the more that cryptocurrencies rise in value, the greater the potential for hackers to come up with new tools to break any encryption no matter how robust, and this more than even price volatility could inevitably kill the golden goose of decentralized currencies, or at the very least bring demands from traders to have the industry legislated under regulatory or government control.

It’s never been a more bullish time for crypto investors. Despite the recent correction, the army of digital currencies led by bitcoin demonstrated incredible growth in 2017. But their rise in value could trigger a crime tsunami. 
While fraud, as well as insider trading, are seen as inherent risks for digital currencies, it is still hacking that poses a far more severe threat for investors eager to gain from the new asset. Cyber-theft is increasingly widespread and extremely difficult for the average person to avoid. 
Cybercrime has been a sore point in the industry from the very beginning. Nearly 33 percent of bitcoin exchanges were hacked between 2009 and 2015, according to a report from the US Department of Homeland Security, published in 2016. The agency also highlighted one-off scams and attacks on individual investors throughout that time. 
However, if bitcoin and its peers continue to grow despite the recent plunge in value, it may trigger many more hacker attacks, as cybercriminals go where the money is, and the money is definitely in bitcoin at the moment. Cyberheists are highly profitable with a single attack able to bring in millions of dollars. So, a further surge in crypto markets may lead to the extension of traditional malware operations beyond banking Trojans, ransomware, carding, with cryptocurrency investors expected to fall victims as well. – Russia Today
One thing to remember about the past is that the Bank Panic of 1907 led the people to be willing for the Federal government to create a central bank (Federal Reserve).  And whenever investors and savers garner enough fear that they could lose their money and property, it is at that time that the demand for regulation outweighs the freedom of decentalization. 

0 comments:

Post a Comment