Perhaps the biggest concern Bitcoin investors, or those bullish on the cryptocurrency space, share is related to the potential effect of hackers within the less-secured aspects of the cryptocurrency space.
With cryptocurrency marketplaces and exchanges touting rock-solid digital security systems and the ability to safeguard cryptocurrency holdings and trades from governments that would otherwise like to know who is trading on such exchanges and what the purpose of the transactions are, recent hacks of exchanges have exposed concerns which are much more real than some bitcoin enthusiasts would like to admit.
According to recent data highlighted in an in-depth investigative analysis by The Globe and Mail, estimates are that nearly one million bitcoins (980,000 to be exact) have been stolen from bitcoin exchanges in recent years. With a reported three dozen heists having taken place in less than six years, news reports of yet another bitcoin-related hack appear to fall on deaf ears, with investors less focused on the risks associated with trading cryptocurrency than with the potential near-term gains to be had.
The high-profile hack of Mt. Gox in 2014 is perhaps the most notable of the bunch, affecting the world’s largest bitcoin exchange at the time. The recent hack of NiceHash, a Slovenian cryptocurrency marketplace, only accentuates the implicit risk investors take when dumping their hard earned money into these volatile digital blockchain sequences.
As with any investment, consider the risks alongside the potential benefits of any trade, and consider consulting an investment advisor before making any investment decisions.
Invest wisely, my friends.
