May 15, 2021

The impact of Bitcoin hacking incidents in the crypto market

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In the 2013–2017 period, 29 hacks occurred in the Bitcoin market where a total of 1.1 million Bitcoin were stolen. Noting that the average price for Bitcoin (BTC) in December 2020 exceeded $20,000, the corresponding monetary equivalent of losses is more than $22 billion, which strongly highlights the societal impact of this criminal activity. 

What did crypto exchanges do to address this problem? Nowadays, about 90% of exchanges use some kind of cold storage system, which means that digital assets are stored offline. Keeping Bitcoin offline considerably reduces the threat from hacking attacks.

Related: Roundup of crypto hacks, exploits and heists in 2020

Nevertheless, Jean Baptiste Su, principal analyst and technology futurist at Atherton Technology Research, highlights that in 2019, hackers stole over $4 billion, which was more than twice as much as in 2018. In fact, cyberattacks are a very serious issue that cast doubts on the security of modern blockchain-based applications in the financial industry. Of course, one can argue that thefts also occur when using traditional payment methods, such as credit cards. For instance, the Annual Fraud Statistics released byTitle: The impact of Bitcoin hacking incidents in the crypto market
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Published Date: Sun, 24 Jan 2021 13:34:00 +0000