A third of all Bitcoin exchanges have been hacked since 2009

By Shawn Knight ยท 5 replies
Sep 6, 2016
Post New Reply
  1. Bitcoin, the volatile cryptocurrency created by the mysterious Satoshi Nakamoto (likely a pseudonym), has taken investors on one hell of a roller coaster ride since its inception in 2009. From its humble beginnings and non-existent value to its late-2013 surge of more than $1,200 per unit and subsequent drop, it’s been an interesting experiment to say the least.

    Investors with funds tied up in the virtual currency, however, have had to deal with far more than a volatile value.

    Tyler Moore, assistant professor of cyber security at the University of Tulsa's Tandy School of Computer Science, tells Reuters that since its debut in 2009 through March 2015, a full third of all Bitcoin exchanges operational during that time were hacked. And because they all operate differently (and are unregulated), they all have different policies on what happens to customers’ funds in the event of a breach.

    To put the figure into perspective, the Privacy Rights Clearinghouse notes that of the 6,000 banks operational in the US during the same period, only 67 experienced a publicly-disclosed data breach, or around one percent.

    Moore’s report also found that, during the same period, a whopping 48 percent of Bitcoin exchanges shut down.

    Richard Johnson, vice president of market structure and technology at Greenwich Associates, told the publication that a 48 percent closure rate is not acceptable although not surprising given that Bitcoin is such a new technology.

    As always, one shouldn’t invest in anything unless they fully understand the nature of the investment and the risks associated with it. And as the old saying goes, it’s never wise to put all of your eggs in one basket (translation - diversification is your friend).

    Permalink to story.

  2. CaptainTom

    CaptainTom TS Maniac Posts: 306   +132

    Yawn. What a non-statement.

    Wait! A notable proportion of start-ups in an emerging technology have had issues?! WHAT!?
    Hexic likes this.
  3. Bigtruckseries

    Bigtruckseries TS Evangelist Posts: 583   +318

    Everything about BitCoin screams PUMP AND DUMP scheme to me. I stayed far away from it. And I've usually made good investments (Tesla, GOLD, Marijuana stocks...).

    BitCoin is backed and insured by nothing.

    The first thing BitCoin fanbots say is "well have you seen how it went up?"

    I've seen how many times it's been hacked. I don't trust it.

    Say what you want about the US DOLLAR, but I know it's insured by the FDIC and backed by a bunch of jet fighters with nuclear bombs under their wings and the largest, most violent military force on Earth - in the history of man.
    Raoul Duke and p51d007 like this.
  4. GreenNova343

    GreenNova343 TS Maniac Posts: 208   +115

    So...the "untraceable", "going to replace 'real' money tomorrow" virtual currency is, in fact, insecure. Makes you wonder if the encryption password was something like "password", "abc123", or another entry from those lists of 'ridiculous' passwords that people apparently still use.
    p51d007 likes this.
  5. We are talking about people's money here, maybe you'd be concerned if you lost all of yours. FWIW I wouldn't touch any crypto-currency. Maybe you'd be concerned if the bank you deal with got hacked......
  6. Camikazi

    Camikazi TS Evangelist Posts: 925   +284

    A money exchange being hacked is not the same as a startup having "issues" it is a big deal.

Similar Topics

Add your comment to this article

You need to be a member to leave a comment. Join thousands of tech enthusiasts and participate.
TechSpot Account You may also...