How Exchange Hacks Underline Crypto Gains and Not Their Failings
May 12, 2019
Although, 2018 was a rough patch for the crypto market, there were no shortcomings when it came to Online Cryptocurrency Exchanges. The recent exchange hacks are proof for the same as multiple media channels believe that the two exchange hacks were somehow related to each other.
Popular media outlets such as the Wall Street Journal and Bloomberg have refuted the claims and cited them as rubbish – A hack and crash that happened on the same day does not have to mean that the source of either had to be the opposite problem. This goes to show how many news channels are eager for the fall of the crypto market.
All that being said and done, all one needs to do is not give up on crypto so soon as exchange hacks on any cryptocurrency exchanges should not be the reason that is held accountable for cryptocurrencies.
Rather, every crypto enthusiast should still have faith and first understand why cryptocurrencies still need to be around.
Determining if the Root Cause Behind the Failings of Exchange Hacks are “Trustable” Third Parties or Not
Since the inception of cryptocurrencies, the whole idea behind encrypted, digital currency has been maintaining the integrity of trust.
And although, Bitcoin’s primary goal has always been to pose as a self-sufficient online payment system that is trustable and devoid of any third-party meddling on a peer to peer network popularly known as Blockchain, it only holds the same for true Bitcoin owners.
Soon enough, just as predicted this revelation seemed entirely way too enticing as the growth in cryptocurrency exchanges multiplied by tenfold and yet somehow, along the way cryptocurrency exchanges seemed to stagger in their principles and numerous cryptocurrency exchange platforms were straying away from all the ideals that kicked off their services in the very beginning.
Nothing like the claims, a lot of cryptocurrency exchanges averted to centralized technology so much so that one point they resembled a lot like banking systems did.
The crypto industry has always been too keen on decentralization so when certain platforms conform their cryptocurrency exchanges to centralized technology, the whole notion that made the crypto market what it is today, somewhere falls flat.
But is this revelation really that surprising? After all, cryptocurrency exchanges have been the prime target of so much thievery in the past 10 years that almost hundreds million dollars have easily been stolen. One thing is certain, crypto has always had much to fear considering the number of hackers who time and time again loot the industry leaving behind a minefield of distress for a lot of companies who have to then face the brunt of this.
It is all sympathy and games for the crypto industry until you finally realise how much money these exchange platforms rake in every year.
So, stating that the root cause behind the failings of exchange hacks are trustable third-party figures would be wrong. It is simple. If major crypto names such as Bitcoin and Litecoin have never been hacked then this could indicate only one thing – Certain cryptocurrency exchanges are just not secure enough to protect any transactions or the traders involved in their dealings.
Drawing the Conclusion About Exchange Hacks
Although, exchange hacks may not necessarily be the sole reason to dump cryptocurrencies, there do have their fair share of problems in the industry. As exchange platforms are the medium for cryptocurrency exchanges, it is extremely important that all the cryptocurrencies of a user are safely transferred into a supremely secure albeit offline wallet when they are not being actively traded.
The key to this advancement asks one to embrace all the plus points of regulation as in the crypto world, regulation is a word that many run away from. The past may have involved some negative results from conforming to these regulations however it is only right to give it a chance as well. Because, believe it or not the only way to secure cryptocurrency exchanges for multiple cryptocurrencies such as Bitcoin cryptocurrency and Monero Cryptocurrency that are reliable as well as private all the time and will transform these cryptocurrencies in the process – For all of this, the answer lies in these brilliant regulations.