A major bitcoin breach of the currency exchange platform, Bitfinex, resulted in a 78 million dollar loss…
The digital currency, bitcoins, are being reevaluated as another massive breach occurred, resulting in a major loss for Bitfinex. The company is currently investigating the breach, and reported they will evaluate customer losses as the investigation progresses.
According to The Christian Science Monitor, digital currencies are not able to be regulated like other forms of currency, as they are not backed by banks. Is it time to rethink this? Perhaps.
This is not the first breach resulting in a financial loss for a digital currency platform. In 2014, a Tokyo based company lost thousands. Earlier this year another platform, Ether, lost 50 million dollars after a breach occurred.
I don’t believe the bitcoin is going to become obsolete due to these breaches, but it does raise questions on how the currency is regulated. It would be in the best interest to look into some form of insurance for the bitcoin exchanges, similar to what the FDIC provides on bank accounts.