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gopherguy13gopherguy13
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The Rube wrote:


gopherguy13 wrote:


The Rube wrote:


It is very open to hacks, and the lack of insurance is troubling. If FDIC (or similar) gets behind it, that may change my view. It’s just too risky and volatile.

Rube, one of the single biggest things that gives crypto a chance to succeed is because it fundamentally can’t really be hacked. It’s decentralized. There’s not one centralized “system” to hack into.

Can people “hack” individual users’ accounts by cracking their passwords and stealing all their money? Yes. And if that happens, you’re right, it’s not FDIC insured, so you’re bleeped. That’s why you better be damn sure you have a secure password + 2 factor authentication.

So instead of the concern that it can be “hacked”, the concern should be that if you don’t secure your account properly, and someone gets into it, you very likely will be out everything.

https://www.reuters.com/business/finance/coinbase-says-hackers-stole-cryptocurrency-least-6000-customers-2021-10-01/

https://www.cnbc.com/2021/08/11/cryptocurrency-theft-hackers-steal-600-million-in-poly-network-hack.html

https://www.technologyreview.com/2019/02/19/239592/once-hailed-as-unhackable-blockchains-are-now-getting-hacked/

Just saying.

The first couple look like exchanges being hacked, which happens. And that’s the situation I described, where if you don’t have your account secured properly, you could get screwed over.

The last one is interesting, the 51% attack, but here’s an interesting passage from the article:

“For popular blockchains, attempting this sort of heist is likely to be extremely expensive. According to the website Crypto51, renting enough mining power to attack Bitcoin would currently cost more than $260,000 per hour. But it gets much cheaper quickly as you move down the list of the more than 1,500 cryptocurrencies out there”

So it costs more than a quarter million dollars an hour to successfully attack bitcoin. Say there’s a hacker group with millions of dollars lying around and they’re able to steal a bunch of bitcoin. What will happen once news of that gets out? Everyone will sell their BTC, and the price plummets. So all that BTC they just stole will rapidly become less and less valuable.

So, they’d have to front potentially millions of dollars, knowing that as soon as they get their hands on these assets, they will almost certainly plummet in value. Doesn’t seem like a very smart business decision.