Another crypto hack: $190 million gone up in smoke
While the market is experiencing an exponential democratization of cryptocurrencies, largely fueled by the search for “easy wins”, the financial news is witnessing numerous fraud or hacking scandals blockchains. A billion dollars were stolen in 2022 alone bridge. Indeed, intended to carry out transactions between secure cryptocurrencies, bridges can be presented as a flaw in systems, which represents the goal of choice. However, this does not stop investors, on the contrary. Everyone feels the need to invest in order not to remain on the margins of the financial business of the future, a phenomenon that does not exclude central banks. In July 2021 ECB announced the launch of the research phase of its digital currency, aiming to see the light of day by 2024. Similarly, the small country of El Salvador is speculating about the future of cryptocurrency Bitcoin, raising it to the title of official currency. It is clear that cryptocurrencies will embrace exponential development in the coming years. The time when we will equip ourselves with crypto cards, replacing bank cards, may not be so far away.
According to the French Ministry of Economy and Finance, “Cryptocurrencies represent virtual assets stored on an electronic medium, which allow the community of users who accept them as payment to resort to transactions without resorting to legal currencies.” Mainly supported by private actors, cryptocurrencies have a real interest in not depending on state regulations, ignoring them de facto the basic sovereign right of states to mint money and control its use. But again, it’s all a matter of perspective. So the question is: what rights do investors have to sue pirates? And besides, who to turn to in such circumstances? In this case, we are swimming in legal vagueness in terms of repression. In a case such as a bridge Nomad, managed to raise $22 million last April, securing precisely innovation with a security protocol advantage focused on protection against hacking. Although security protocols are constantly improving, the speed at which funds can fly, among other activities by hackers, makes cryptocurrency a subject of perpetual uncertainty and question. Central banks hope to carve out a niche here, developing “trust” solutions, with the intention of satisfying users’ natural need for perspective.
In other words, the expulsion of countries from the monetary system disturbs the balance of power. That offers prospects for some to be more aggressive, especially Iran, which is betting on cryptocurrencies to challenge American power while circumventing the economic sanctions it is subject to. According to the statement of Alireza Peyman-Pak, the chiefTrade Promotion Organization Iranian, Iran has reportedly invested $10 million in crypto wallets recently. It hints at future investments until September 2022.
As with any stock market asset, one should regularly expect “crash” of crypto capitalization, indicating significant financial losses that never make the headlines. Philosophically, doesn’t this mean breaking with the most important principle of money, i.e. its stability? Attractive due to his extremely changeable nature, an actor like Elon Musk did not fail to make people talk about him in this area. armed with Twitterhas been accused, rightly or wrongly, of generating an $86 billion loss since 2019 on cryptocurrency Great Danes, which he seems so passionate about. However, the notorious instability that many investors, including influential ones, are playing on is to blame. In reality, can one wonder if crypto-currencies do not inspire fascination, mainly because of the speculation that can be extracted from the fruits of lambda value in the stock market, and not because of its nature as a currency in itself?
Luc de Petiville
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