Hacking Of Bitfinex Could Break Faith Of Bitcoin Investors

Bitcoin fall

The Bitfinex platform has been hit by the hack and cyber theft of around 120,000 bitcoins and it could shatter the confidence of the future investors in the cyptocurrency as stated by experts.

The Bitfinex states that they suspended trading on the platform on Tuesday because they had discovered a security breach. When the Bitfinex suspended trade, all the 119,756 bitcoins worth of $72.3 million at the price were reportedly stolen.

The news affected by the prices of the bitcoin, which reduces to as low as $514 per bitcoin. The value of the cryptocurrency has risen back to $576, but it is still very low as compared to the July prices.

Some of the platform’s functions were restored day after the hack allowing users to determine their losses. Still, some key functions such as trading, and withdrawing bitcoins haven’t been disabled.

An bitcoin accounts $230,000 was stolen from the trading platform ShapeShift in April while in May, the Gatecoin, a Hong Kong based platform lost more than $2 million of cryptocurrency. The biggest hack of the hack took place in 2014, when $450 million worth of bitcoin was stolen from Tokyo based Mt. Gox.

New investors will be scared away by such type of hacks in the virtual currency. The main fundamental strengths behind the bitcoin will remain to be strong, but it is a great chance that these types of events will affect the potential of the investors. This statement is given by the Chief Executive and Founder of Website CryptoCompare Charles Hayter to CNBC through email.

The Managing Director of Blockchain Payment Company Billion Group gives a statement through email that there is a chance for more hacks in future, which will destroy the trust of the investors in cryptocurrency. I think, it is just the start of this trend, which could affect the foundations of the bitcoin value.

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1 Response

  1. October 24, 2016

    […] a blog post nowadays, Bitfinex did just that, set up an email address, public key server and PGP key, while also proposing […]

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