Last year, the internet world was enthralled with the rise in Bitcoin rates. It seemed like cryptocurrency will outclass gold and other pricey elements too. However, the frequent crashes in the crypto world raise questions about the stability of this digital currency. Can we really expect a bright future for cryptocurrencies?
The latest $2K drop in the rates of Bitcoin and other crypto coins
Since the day Bitcoin began trading on larger scales, we have witnessed several significant crashes in Bitcoin rates. In fact, from January 2012 until February 2018, we have seen 13 major Bitcoin dips.
The setback observed a few days ago may be labeled as the 14th one. It caused a marked drop of more than $2000, leaving the current selling rates of Bitcoin at $9K.
Likewise, the exchange rates of other prominent cryptocurrencies, such as Ethereum, Ripple, and Bitcoin Cash, also suffered a drastic setback.
Although we have seen Bitcoin enduring such crashes and hitting the market with more force after every successful survival, these fluctuations make the stability and future of this currency questionable.
Frequent crypto-exchange hacks raise skepticism
Besides the volatility and the rapid fluctuations of cryptocurrency exchange rates, the other factor making cryptos dubious is the frequency of exchange hacks. The year 2017 ended with a significant loss of 4700 BTC with the NiceHash hack incident.
Crypto traders had hardly recovered from this blow when they faced another major hacking incident; this time it was the Coincheck exchange which got hacked at the beginning of the year.
Update on CoinCheck hack: Coincheck, the Japan-based cryptocurrency exchange has started compensating users who suffered losses in January hack since Monday, March 12th 2018.
That was the second largest hacking incident reported so far, causing a loss of $530 million, larger even than the Mt. Gox hack which resulted in a loss of $340 million.
These are just a few of all the exchange hacking incidents reported up until today. What else can we anticipate from a currency so vulnerable to losses?
About a week ago, some problems in the Binance Exchange user accounts spread rumors about the potential hacking of the world’s most famous cryptocurrency exchange.
Fortunately, the Binance officials denied these rumors and began investigations into what their users faced. Still, ruling out the chances of Binance hacking is not wise.
Crypto-traders’ excitement remains
Although the fluctuations in crypto coin rates and the frequent hacking attempts raise skepticism towards these currencies, still we see more and more crypto-traders stepping into this world every day.
The main reason behind the charisma of Bitcoins and altcoins is their potential of making an average person of today, a millionaire of tomorrow. The significant returns Bitcoin generates for traders are attracting more newcomers to spend their money on cryptos.
Yet, the problem arises when they face a crisis or a setback due to a crash or hacking attempt. Still, the non-sufferers continue to trade at their own pace. In fact, we can now see several corporate giants getting proactively involved in the domain.
For instance, Amazon has now launched its own ‘Amazon Coins’ to trade on their site. The positive response of users to this step hints towards the steadfast love for cryptocurrencies among the people.
According to a recent survey by LendEDU, most consumers would use cryptocurrency if their online retailers create one. 58% Prime users said yes to using ‘Amazon Coins’ for purchases on the website.
Considering the hype for crypto coins among the masses, we can anticipate a bright future for cryptocurrencies. Nonetheless, one should never rule out the vulnerabilities and instabilities of this currency. The blockchain technology underlying the digital currencies is indeed secure, however, the network of crypto trades forming above needs more attention. Only a stable and secure trading system can empower the digital money to take over the fiat currencies.