Cyber attacks leave Bitcoin investors unable to withdraw their investments on cryptocurrency.
The leading cryptocurrency in current digital market experiences a serious threat to its survival as a result of which, its price has gone down by more than 30% since the start of 2018. Bitcoin was the first ever peer to peer digital asset being transacted without any dependency on third parties like banks. Bitcoin works on top of the highly secured blockchain technology.
Trading cryptocurrencies is one of the easier ways to earn profits and has attracted many investors over the past. Though Bitcoin investors make high profits, it is associated with a huge risk. It is almost impossible to predict the futuristic prices of any cryptocurrency. Bitcoin's price has reached its peak during the 2017's Christmas eve. The growth of Bitcoin attracted many more traders to virtual currency trading platform.
Bitcoin - Highly fluctuating
The year 2018 doesn't seems to be good for the cryptocurrency investors till now. The price of Bitcoin is highly fluctuating since the start of the year and it has lost its value by more than 30 percent within few weeks. The major reasons for this behavior are as follows.
South Korea's strong decision to prevent anonymous trading on cryptocurrencies has left a global impact and gave a severe warning to all the investors/traders who were enjoying by making huge profits without letting others know their identity. South Korean government penalized eight domestic cryptocurrency exchanges since they lacked in securing their clients against hackers and provided insufficient user data protection.
Korea Communications Commission (KCC) chairman Lee Hyo-Sung mentioned:
"While the security threats such as digital currency speculation and hacking of handling sites are increasing, the actual situation of personal information protection of major virtual currency exchanges is very weak. Hence, we will try to reduce the damage to users through more strict sanctions"
Cyber attacks are becoming more prominent nowadays in digital currency sector. Many investors have lost huge amounts and there has been no trace on what happened to their investments. A recent attack has left Bitcoin investors unable to get back their money which they have invested on cryptocurrencies.
Lack of legitimacy with the exchanges. Traders use various cryptocurrency exchanges to earn profits. One of the well known cryptocurrency exchange had recently asked all its clients to withdraw their investments as the exchange said that it is planning to shutdown their trading platform. If the investors/traders do that then they will face a severe monetary loss, as prices of many cryptocurrencies are very low compared to their earlier values.
Bitcoin and other cryptocurrencies are certain to end badly.
US Government WARNS
Bitcoin is now facing a serious threat as US Federation Reserve system is planning to eliminate Bitcoin due to its lack of transparency in its transactions. The only way now for Bitcoin to survive is with the help of Blockchain technology.
Soon more regulations are to be made in the digital currency sector to ensure crooks are not spreading crimes. These regulations are expected to be more stringent and ultimately aims to reduce the illegal activities which are occurring in the present digital trading platforms.
Goldman Sach's analyst compares Bitcoin's growth to the disastrous 17th century Tulip mania.
With many investors and businesses coming hard at Bitcoin (including other cryptocurrencies), its survival has become a big question mark.
If blockchain platform can prove its true potential with the help of developers coming up with more realistic use cases, cryptocurrencies might still exists. For now, blockchain technology remains the only key for Bitcoin's survival.
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Navin N
TECHOSlovia