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Cryptocurrency value drops after South Korean hack

If you invest in bitcoin and other cryptocurrencies, then the past weekend has been a rather stressful one.

This comes after a major hack at South Korea-based crypto exchange Cornrail. How bad was the hack? According to the Wall Street Journal, the individual behind the hack stole approximately $40 million. Yet, while the South Korean police are investigating the matter, already having recovered or frozen about 80 percent of the stolen money, this hack is rather concerning for those who invest in cryptocurrencies.

How safe is cryptocurrency from hackers? (Picture sourced: Pixabay.)

 

While the hacker targeted Cornrail only, investors in other virtual currencies are apparently jumping ship out of fear. This has left Bitcoin dropping just over 12 percent, bringing its decline to a staggering 53 percent this year.

The value of other cryptocurrencies has also dropped tremendously. According to Bloomberg.com, the market value of digital assets tracked by Coinmarketcap.com has retreated to a low of $298 billion. This is a staggering amount, as in the height of the global crypto mania in January, it was worth approximately $830 billion.

While the hack over the weekend is scary for those investing in cryptocurrency, it is not the first time it has happened. In late January, nearly $500 million was stolen from Coincheck.

With the hack sending shudders through the cyber world, security measures are apparently being put into place to safeguard other cryptocurrencies.

As the late great Freddie Mercury once said –  “Easy come, easy go”. However, the digital money era has just begun, yes these are all flaws which are being ironed out, but one thing is for sure, cryptocurrencies are going nowhere.

What are your thoughts on investing in cryptocurrencies? Do you believe it is feasible? Or do you think there is still a lot of potential for hackers to steal money from digital platforms? Share you thoughts with is in the comments section below?

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