The security of cryptocurrencies is an issue for some people.

Pursuer

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Quote from: karamoris on February 07, 2018, 12:22:40 AM

The founders of digital coins know that stories about exchanges being hacked damage their image.
For cryptocurrencies to be commonly used by the general public they must gain trust. The same trust that people have in the bank coins and notes they use to buy goods and services.

exchanges are used by traders not by the "general public" so why should they even care about the security of these exchanges?

also what does this have anything to do with "security of c ryptocurrencies" which you put into your title here?!!! it seems like nobody else read the comment itself and mainly are focusing on the title! a cryptocurrency is only safe as long as its code is safe and its network is safe from attacks and a couple of other things. but its safely has nothing to do with the safety of the third party services that are using it.

Hexcolyte

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Bank can be robbed, just like cryptocurrency exchanges can be hacked. Fiat currency is protected because it has support from government and can be controlled by the law. Cryptocurrency is protected because blockchain ensures every single transaction is valid and is validated by people around the world.

Lucius

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Quote from: karamoris on February 07, 2018, 12:22:40 AM

The founders of digital coins know that stories about exchanges being hacked damage their image.
For cryptocurrencies to be commonly used by the general public they must gain trust. The same trust that people have in the bank coins and notes they use to buy goods and services.

Every exchange should have insurance in case it is hacked,and if I remember well there are companies that provide such insurance for cryptocurrency.But it's an extra cost for exchanges so they do not decide to take that measure.I think that such insurance would be necessary for every exchange,and like in case that someone steals money from your bank account,bank have insurance and the client will be safe.

Few days ago Japan financial institutions started inspection at all exchanges due to big hack of NEM in Coincheck exchange.I hope they will set standards who will then follow the others in the world.

Keeping digital currencies online is always big risk,but for traders there is no other option.If the exchanges can guaranteed the security of their clients' funds,then more people will use exchanges and they would feel safe.

VitKoyn

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Quote from: karamoris on February 07, 2018, 12:22:40 AM

The founders of digital coins know that stories about exchanges being hacked damage their image.
For cryptocurrencies to be commonly used by the general public they must gain trust. The same trust that people have in the bank coins and notes they use to buy goods and services.

There are no issues in security of cryptocurrencies themselves, but the problem is those exchanges with poor security that are being hacked but you shouldn't compare exchanges with banks because exchanges are not designed to store your coins/money, if you will store your coins use a private wallet. Also banks security have vulnerabilities and can also be hacked. The problem with cryptocurrency exchanges is there is no guarantee that they will give you back your coins/funds when their platform gets hacked like what banks do.

charlotte04

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Quote from: karamoris on February 07, 2018, 12:22:40 AM

The founders of digital coins know that stories about exchanges being hacked damage their image.
For cryptocurrencies to be commonly used by the general public they must gain trust. The same trust that people have in the bank coins and notes they use to buy goods and services.

Banks and cryptos for me is just the same, but in fact that when crypto gets hack or you lost some funds in there, well, there will be no one you could run into to get your money back.

marcbitcoins

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Quote from: karamoris on February 07, 2018, 12:22:40 AM

The founders of digital coins know that stories about exchanges being hacked damage their image.
For cryptocurrencies to be commonly used by the general public they must gain trust. The same trust that people have in the bank coins and notes they use to buy goods and services.

Even fiats bank can be hack because the hacker will not choose a target as long as the IT defense system of any establishments is weak including the banks but still i favor the securities of the banks that they can give than the exchanges because banks will hire the most IT experts in order to save the money who in trusted to them by the people that is why i'm longing to have a crypto currencies bank also so that our coins will be more secure and insured same benefits enjoyed by fiat banks clients of today.

RodneyKings

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For me everyone of us is vulnerable to hacking ever since computers were created. We're really not secure even a lot of inventions or apps or whatever and whoever says that they'll protect us from hacking and such. That's why it is a general rule to only invest what you can afford to lose so that if ever you're hacked, you can still gain yourself back (but yeah, can't really say that lightly to those whose everything is in crypto now).

ralle14

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Imo security shouldn't be an issue for cryptocurrencies users above me already pointed out the problem is coming from the security of the websites and not on the side of crypto.

People who use exchanges as their main wallets are the ones vulnerable to hacks and they should start using wallets that lets you access your own private key. Also they should learn more about different bitcoin wallets and don't stick to one wallet.

I don't think these news are destroying the reputation of bitcoin maybe the price but not bitcoin or crypto in general because we still use them and there's still a lot of demand even though we know that other websites are getting hacked or compromised.

Kakmakr

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The people should not blame the Bitcoin token, when third party services fail. Nobody has ever hacked the Bitcoin protocol. but the services that use the token, has been hacked. People are the weakest link in the chain, because they make mistakes.

The other weak link is software that are being developed by third party services, which is riddled with exploits. Hackers know that the Bitcoin protocol is impossible to hack, so they focus on these third party exploits. Angry

supermine

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Quote from: karamoris on February 07, 2018, 12:22:40 AM

The founders of digital coins know that stories about exchanges being hacked damage their image.
For cryptocurrencies to be commonly used by the general public they must gain trust. The same trust that people have in the bank coins and notes they use to buy goods and services.

The crypto currencies are not hacked while you kept that in your wallet,the chances of hacking is only available if your kept your bitcoins somewhere,like exchanges it is like you are giving power for them to use your crypto currencies because they are controlling your private keys.
Then why people keep their crypto currencies in exchanges,it is not completely safe.
No way to steal our crypto currencies if we keep that it in our wallet with secured private keys.And banks are not safe that much when compared to crypto currency so people will understand about these in future when they got enough knowledge.

usechain

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When some people want to destroy something, they will destroy it by using various rumors or finding faults on it, and I think that bitcoin is treated like this. Even a bank can be hacked attack, nothing in this world is perfect, it needs improvement, we need to be patient and time.

btcgreen63

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Quote from: bizul on February 07, 2018, 12:42:42 AM

If you are serious about your funds, keep them in an actual digital wallet, fortify your OS, and you should -hypothetically- never lose them.

People don't have to have any kind of technical knowledge like that to have their fiat currency be safe in a bank. And each USA fiat account is FDIC insured for $250,000 even if the bank owner makes off with the money.

There is a fundamental and legitimate issue with cryptocurrencies. The private keys must be kept safe. Keeping them safe (and even understanding what they are) requires more knowledge of computers than it does when dealing with standard fiat currencies. This is a real barrier to wide general adoption.

laimaro

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Quote from: karamoris on February 07, 2018, 12:22:40 AM

The founders of digital coins know that stories about exchanges being hacked damage their image.
For cryptocurrencies to be commonly used by the general public they must gain trust. The same trust that people have in the bank coins and notes they use to buy goods and services.

If you are investing large amount of money, save money in a physical wallet. Also, distribute your BTC in different exchanges.

oddwh

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In fact with exchanges, this is different than with banks. If an exchange is hacked, your coins are gone and you can't recover them. With banks, you have insurances that helps you to get back your money.

People need insurances, this help them to feel safe, so if there would exist an insurance system for cryptocurrencies, that would help to democratize de system. It's really hard to create an insurance system with cryptocurrencies as we can't create coins on demand, and we can't manipulate the blockchain without a fork Tongue

We all prefer to store our coins on our own wallet but mainstream people will prefer online services for the easy to use. That's why these services must learn how to protect users correctly even when they get hacked... People don't care if it's the cryptocurrency itself or the exchange that failed, they just know the fact that their coins are gone and that's why every links must be securized.

Indrawan77

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The security in crypto is way better than the bank, the case of exchanges being hacked is not the fault of crypto security, its the site security, if you used the online wallet it got very many layered security and if you not comfortable with online wallet we have the offline wallet and hardware wallet which is very secured according to me, so security is not yhe problem of crypto, legalisation is the problem for crypto, if the government legalized crypto the trust will be going up

1C6fV5DtakfKANLJ8GUV7hCaA

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Banks are way ancient when it comes to security. People will soon realize what the bank's game is. Blockchain is way more secure than any bank server!

zarados

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Quote from: karamoris on February 07, 2018, 12:22:40 AM

The founders of digital coins know that stories about exchanges being hacked damage their image.
For cryptocurrencies to be commonly used by the general public they must gain trust. The same trust that people have in the bank coins and notes they use to buy goods and services.

in fact this is not a security issue in cryptocurrency, but rather a security issue on the exchange sites in circulation. But the media makes it seem cryptocurrency is an unsafe and vulnerable investment to hacking. While the reality is the party that provides exchange or storage services that often experience a hacked, not cryptocurrency.

kojoannan

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The security of not only cryptocurrencies but any financial asset is an issue. Banks too can be hacked and that is the reason why security of banks in terms of physical security and network security is not taken lightly.

bizul

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Who said banks were never hacked? It is only the way for the public, to be forced into using printed money and trust banks with their funds. Also, hacked exchanges doesn't mean that the cryptocurrency is vulnerable, it just means that the exchange was lax on security, the public doesn't understand. If you are serious about your funds, keep them in an actual digital wallet, fortify your OS, and you should -hypothetically- never lose them.

I think it'll take longer for people to adapt to cryptos, especially after the last fall in price.

karamoris

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The founders of digital coins know that stories about exchanges being hacked damage their image.
For cryptocurrencies to be commonly used by the general public they must gain trust. The same trust that people have in the bank coins and notes they use to buy goods and services.

Topic: The security of cryptocurrencies is an issue for some people. (Read 77 times)