Cyber security, the big challenge of Bitcoin :

Cyber security, the big challenge of Bitcoin

After peaking at the end of 2017 ($ 20,000), bitcoin fell below $ 6,000 on June 29.
In 2017, cryptocurrency continued to break records, peaking at $ 20,000 on December 16 (a 20-fold increase in one year) before dropping sharply to $ 13,000 on December 22.

Since then, the price of Bitcoin continues to drop to below $ 6,000 on June 29.

What caused this sudden drop in Bitcoin? In addition to the necessary re-adjustment of its course, the crytomonnaie was the victim of several successive acts of piracy that blunted the confidence of users and financial markets.

Bitcoin and cyber security, a recurring question
Bitcoin is a virtual currency secured by complex algorithms meant to guarantee the security and authenticity of transactions. Despite this, Bitcoin trading platforms are regularly hacked.
In 2015, the MtGox platform went bankrupt following the unexplained disappearance of 650,000 Bitcoins. In 2016, the Bitfinex platform was stolen $ 65 million by hackers.

In 2017, NiceHash, one of Slovenia's leading Bitcoin mining platforms, is being hacked and suspended. The hackers have stolen a portfolio of 4,700 Bitcoins, worth $ 63.9 million. A few days later, the South Korean exchange platform Youbit, also a victim of hacking, announced its bankruptcy.
This time, two Korean trading platforms announced that they had been hacked for 26 and 31 million euros. Deposit and withdrawal transactions are suspended.

This series of hacking seems to have been right for the trust of some users. For example, Steam, the platform for online sales of video games or in France no longer allow payment in Bitcoin.

For Bitcoin, cybersecurity is therefore a major challenge to gain the trust of users and financial markets.

Intervention of authorities and regulators
These repeated hacks push authorities and regulators to take an interest in the operation of these platforms.

For example, the Japanese regulator sent recommendations to six cryptocurrency trading platforms, some of the largest in the country, to combat money laundering.

Central banks around the world regularly warn investors about the risks of loss and fraud.

The G20 financial leaders met in March in Buenos Aires to discuss a possible regulation of cryptocurrencies.

The Financial Stability Board has estimated that the cryptocurrency market is too small to threaten the global economy (the cryptocurrency market today accounts for less than 1% of global GDP, a drop of water compared to subprimes before the crisis. 2008). However, he does not intend to relax his vigilance because the cryptocurrency market is changing rapidly and he will therefore remain attentive to future developments.

But financial stability is not the sole concern of the Stability Council, which has acknowledged that "cryptocurrencies raise questions concerning the protection of consumers and investors, but also because of their use for illegal activities". In particular, he stressed the need for greater international coordination in monitoring these technologies. France and Germany have planned to make common proposals to the G20 that could lead to a regulation of cryptocurrencies.