14 Dec'17

Bitcoin: Hacks and Hyperinflation

On Wednesday 6th December, NiceHash announced on their Facebook page that their website had been hacked.

 

NiceHash is a ‘hashing power marketplace where you can mine altcoins and get paid in Bitcoins’.

 

As stated in their post, the hacking of their website resulted in Bitcoin wallet to be stolen.

 

Time Money reported that the hackers stole $70 million from Bitcoin when their trading hit a record high. This was the fourth biggest breach in cryptocurrency in history. Other cryptocurrency companies that have experienced breaches include: Mt. Gox, Bitfinex and Enigma. To see a full list visit Benzinga’s editorial ‘The 11 Biggest Cryptocurrency Hacks In History’.

 

Andrej Skraba, NiceHash’s Head of Marketing, did not reveal a lot of information to Reuters but stated that it ‘is very probable that the attack was made from an IP address outside the EU’.

 

Speaking to Sky News, Ashley Shen an independent security researcher stated ‘We assume one of the reason why Bitcoin is being attacked is because the price keeps increasing and we think it’s reasonable for hackers [to target]’.

 

However, there’s not much bad news for Bitcoin;  since the launch of Bitcoin Futures on December 10th prices have soared. According to Bloomberg, Bitcoin’s Futures surged as much as 26% ‘in their debut session on Cboe Global Markets Inc.’s exchange.’

 

As explained on Investopedia, futures is ‘a technique to hedge your position and reduce the risk of the unknown’. This type of contract is particularly good for Bitcoin because of its large fluctuations and investors subsequent lack of confidence.

 

Bitcoin now has to tighten its security to prohibit another hack, as well as provide its investors with some stability, which the futures contract may do.