Recent Bitfinex Hack Does Not Shake The Bitcoin Protocol
To put things into perspective: a Bitcoin exchange being hacked does not mean there is something wrong with the Bitcoin protocol. Exchanges act as centralized companies who work in a decentralized environment. While they are not banks in the traditional sense, they are a place to buy, sell, and even store Bitcoin.
Whenever a Bitcoin exchange is hacked, think of it as a bank losing money. If that were to happen, it does not make money wrong. Nor does it mean money is flawed at its core, as it is an isolated incident that has nothing to do with the ‘protocol” of money as we know it. The same applies to Bitcoin, as the technology powering the network is unhackable and far more secure than any other form of transferring value in the world today.
READ MORE >>> http://www.newsbtc.com/2016/08/11/recent-bitfienx-hack-does-not-shake-the-bitcoin-protocol/
To put things into perspective: a Bitcoin exchange being hacked does not mean there is something wrong with the Bitcoin protocol. Exchanges act as centralized companies who work in a decentralized environment. While they are not banks in the traditional sense, they are a place to buy, sell, and even store Bitcoin.
Whenever a Bitcoin exchange is hacked, think of it as a bank losing money. If that were to happen, it does not make money wrong. Nor does it mean money is flawed at its core, as it is an isolated incident that has nothing to do with the ‘protocol” of money as we know it. The same applies to Bitcoin, as the technology powering the network is unhackable and far more secure than any other form of transferring value in the world today.
READ MORE >>> http://www.newsbtc.com/2016/08/11/recent-bitfienx-hack-does-not-shake-the-bitcoin-protocol/
I think the hacks are showing the weakness of the protocol.
Because bitcoin is decentralized and nobody can freeze the funds, these hacks will take place all the time and it basically prevents bitcoin to grow as many people become victims of the thieves and probably will not buy bitcoins any time soon again.
No matter how much I hate these thieves stealing millions worth of coins, I would never want Bitcoin to become something where you can freeze addresses or roll back certain actions. We need exchanges to do our trading and to buy and sell coins, but that doesn't mean people should leave their coins there. If you don't use them, then directly send them over to your own offline storage. That's exactly what I do. I deposit coins, I trade, and once I'm done trading, I withdraw the coins again.
