Just last week, the cryptocurrency mining marketplace NiceHash was hacked and 4,700 Bitcoin was stolen from their wallet – which is the equivalent of $60 Million USD. And the owners have vowed to reimburse it back to their users.
A sophisticated attack
Just when Bitcoin’s price is picking up momentum after breaking the $10,000 hurdle, then comes the news of the hack. The site was temporarily taken down, and NiceHash CEO Marko Kobal and Co-Founder Sasa Coh even had to do a public apology live on Facebook.
Still vulnerable to attack
How do you prevent all of this? It is still debatable on the right course of action to be taken. All of NiceHash members were advised to change their username and password as a precaution. But I don’t think it will be enough.
No central authority, no one to complain to
One of the advantages of using Bitcoin is the anonymity it offers. No central authority that can oversee each and every transaction that happened.
Even if it can be traced, no one will be using their real name and address; making it even harder for authorities to track down perpetrators of evil acts in the sphere.
Sorry just won’t do it, reimbursement is the way to go
It is an unprecedented move. It is nice of NiceHash to take full responsibility for the hack and want to reimburse everyone that was affected by it. With 750,000 registered users on their platform, it won’t be an easy task to rebuild confidence; but at least it is on the right track.
Kobal said, "We are working on a solution to ensure all users are reimbursed. That is clearly a key concern for our users, and we understand this, we are not running away from our responsibilities. As soon as we have a plan in place we will update all users on our intended solution, and we're sorry for any inconvenience which has been caused".
However, NiceHash said users will have to continue using their platform in order to get their money back. Easier said than done, trust is a fickle thing.
Tread with caution, don’t throw in everything you’ve got
With the euphoric rise of Bitcoin now extending above $16,000 USD, it is always good to have a level head when getting into the Bitcoin craze. Don’t just jump in because of FoMo (fear of missing out), especially if it means putting in everything that you got in it.
The saying, “only invest the extra money that you can afford to lose”, is a handy piece of advice at this time.
Category: Team WhaTechCompany profile: Tech junkie by profession and passionate about anything from the digital world, movies, games and reading. He loves writing and hopes you enjoy his writing as much as he does. Eza, is also known as Don in the virtual world, but don’t him me wrong, he's not a mafia type he's really a nice chap and a devout family guy.