Endless Loop Of Bitcoin Hacks – A Serious Concern

criminal bitcoin

Recently bitcoin has gained a hype which is basically a kind of digital currency not like dollars and pounds but is used to verify the transfer of funds and also a decentralized currency which means there is no central authority above it unlike banks. According to the fraud investigating agency online hacking is a major concern for the bitcoin industry.

Bitfinex the largest exchange for the U.S. dollars highlights that even with the tight security and making every improvement btc still does not learn from its mistakes. The hackers are pacing in stealing the currency and recently steals $65 million.

It is estimated that collectively investors have lost about $1.2 billion because of these hack attacks. This ultimately led to impose levy on the customers by the Bitfinex to recover $65 million which approximately let to taking 36 percent of customer’s assets whether they are hacked by the hackers or not.

What did the experts say?

Emim Gun Sirer a renowned Cornell University professor researches the currency and said that “If you do have the six years long history of the hacks and the key thefts, you have to stop at once and starts thinking about its safety measures”. Since 2009 that is from the birth of the bitcoin hacks are particularly vexing the bitcoin community.

Recent Hack

Mt. Gox –which at once was the largest exchange was hacked for $450 million in the year 2014.From that incidence many industries have adopted a stern security measures and a two factor authentication for securing the logins. Next step taken by the securities is multi signature security which will ultimately split your private keys attached to every Bitcoin and will hide them to the multiple locations.

Measures taken

Bitfinex made use of the security features basically suggested by the fraud investigators and security experts that will led to store the multiple copies online with a third party.

CONCLUSION

Despite all these security features like securing the tiny electronic files by not leaking the private keys online and also a multi signature technology pushes the bar to the high level still nothing is perfect and calls for the concern.

Bitcoin Advice

All posts published by the Bitcoin Advice Editorial Team combined. Primary objective is to provide quality content to our readers.

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