In another blow to the rising star of Bitcoin and other cryptocurrencies or blockchain platforms like Ethereum, one of the world’s largest Bitcoin exchanges was victimized by hackers, with a significant number of digital “coins” stolen.
People will continue to bet on these digital currencies, chasing the dream of easy millions, but there are undeniable risks involved, as this incident clearly demonstrates.
Located in South Korea, one of the leading countries in the tech industry along with the U.S. and Japan, the exchange known as Bithumb had rapidly been growing in popularity and size over the course of this year. In fact, Bithumb had recently jumped from the fourth-largest cryptocurrency exchange to the single largest exchange of its kind in the world based on daily trading volume.
It’s been reported that in total, “billions of won,” the Korean currency, were robbed from the Bithumb exchange by hackers. For reference, 1 billion won is the equivalent to $870,000.
The most notorious Bitcoin hacking incident ever happened to Mt. Gox, an exchange that was hosted in Japan. Although the financial realities of the Mt. Gox fiasco are somewhat murky, at the time the firm filed for bankruptcy, it claimed nearly a half-billion dollars worth of Bitcoin was missing from its digital wallet.
It’s simply yet more evidence that it’s unwise to fully entrust your financial future to speculative positions in cryptocurrencies unless you have some safe-haven funds stashed in precious metals. Digital technologies will have their place in the future of finance, no doubt, but are still vulnerable to each and every pitfall that storing wealth on any electronic money ledger entails.
The opinions and forecasts herein are provided solely for informational purposes, and should not be used or construed as an offer, solicitation, or recommendation.