Investor Safety Is Now A Key Concern For Crypto
Scroll DownAmong the topics discussed in 2021, cryptocurrencies were among the most popular subjects to ponder upon with family, coworkers and friends during late-night drinks and lunch meetings. While many individuals understood the push toward digital currencies, no one took them seriously. It was not uncommon to hear phrases like "bubble," "fad" and "meme" thrown around in casual conversation.
But that all changed when Joe Longo, chair of the Australian Securities and Investments Commission (ASIC), proclaimed his interest in digital currency. Long exclaimed that "Cryptocurrencies are nothing short of phenomenal and impossible to ignore." when addressing the topic of future currencies and market needs.
Longo's statement raises an interesting point: how can we meet the rising demand for digital currencies while keeping investors safe? While Longo admits that decentralized currencies are a fascinating domain of interest, it fails to provide a safety net for investors. More specifically, decentralized mediums of currency have a shaky foundation that, when examined further, provide zero accountability.
These revelations come at the tail-end of the Commonwealth Bank of Australia's (CommBank) introduction to the world of cryptocurrencies. While CommBank dominates the Australian financial market, it now provides a means of buying and selling popular cryptocurrencies from their customer's mobile phones. With news like this, Longo believes we can no longer ignore the rising growth of crypto-minded investors or deem digital currencies as a fad with a sell-by date on the immediate horizon.
While these advancements in financial technology may seem like the perfect remedy for soon-to-be crypto millionaires, there lies an unsavory problem deeply embedded in the bits and bytes of blockchain technology: security and theft. Simply put, cryptocurrencies aren't foolproof.
To illustrate this point, we dove into the empirical data surrounding the world of cryptocurrency theft and what it means for the average investor. Shockingly, hackers and thieves craft unique technological tools that, when used against popular cryptocurrency exchange domains, allow them to siphon your hard-earned currency directly out of your digital wallet.
As of November 2021, nearly $3-billion worth of digital currencies has been stolen from under the noses of innocent investors. Although cryptocurrencies paint a poetic vision of green pastures on the distant horizon, the technology must address looming security problems destroying its reputation.
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