A recent cryptocurrency exchange hack in Seoul, the capital of South Korea, has shocked cryptocurrency enthusiasts. This event has brought about a loss of £27.8 million and has further affected the value of Bitcoin as well as other digital currencies. As a result of the recent South Korea cryptocurrency exchange hack and the hacks of various other exchanges worldwide, along with pressure from regulatory authorities throughout the world, the price of Bitcoin has fallen to below 50% of what it was in December.
Although Bitcoin, the world’s biggest digital currency has been experiencing some level of stability in the last two weeks, the same cannot be said of it at the moment.
What is the Effect of this loss on Bitcoin
The South Korean cryptocurrency exchange hack is one that can be considered to be a big devastation to the cryptocurrency community. The aftermath of this hack is an 11% drop in the price of Bitcoin (BTC) from what it was on Friday. This drop in Bitcoin price has brought the overall decline of the price of Bitcoin since January to 53%. In as much as Bitcoin is worst hit, other digital currencies are not left out of this mess.
This is not the first time a huge cryptocurrency hack has occurred in Asia this year. In January, there was a cryptocurrency exchange hack in Japan (Coincheck) which led to the loss of over $500 million worth of NEM tokens. Now, the fact that this is not the first time that a cryptocurrency hack has occurred this year has significantly affected the enthusiasm for cryptocurrencies by a lot of investors. It is believed that if a cryptocurrency hack can take place in multiple different locations in a span of months, then, the likelihood of another hack taking place at several other different locations, or even the same ones, in no time is very possible.
Cryptocurrency Might not be so safe After all
Digital currencies are believed to be one of the best stores of value. Also, the fact that cryptocurrency is based on the Blockchain technology, they are most times portrayed by cryptocurrency experts as one of the best things to happen to the world’s financial system in recent times. Well, the truth is that the level of privacy which cryptocurrency is valued for is the same level of privacy that is taken advantage of by hackers.