The market on cryptocurrency has grown drastically over the past year with a market capitalization or market cap topping $180 billion overall. Investors in the space have also noticed the skyrocketing gains within the industry. Because of this, several start-ups and companies have begun to use cryptocurrency as a way to receive fundraising. This has also sadly attracted the markets of hackers and criminals alike.
The result of this has been a lot of hacking attempted on the cryptocurrency exchanges themselves. These exchanges are essentially the intermediary between buying cryptocurrency and the buyer. They are completely decentralized, but simply serve as a digital space to buy and sell various digital assets.
With the decentralization of the exchanges, it ensures that security cannot be compromised. There is no one body to hack and no one exchange that would topple the industry as a whole. The exchanges do not hold on to the coins as well which contributes to their inability to be hacked and taken over.
One of the issues that lies with cryptocurrencies is in the fact that they can become a large problem for governments. With the news of China shutting down multiple cryptocurrency exchanges during the middle of September, it has shown that they are undoubtedly susceptible to government interference. This is obviously not a positive, but it shows that regulation may be in the future, which could help to boost the markets as a whole.
Cryptocurrency is obviously a balancing act between anonymity and security, and continues to be a fight between decentralization and the original premise of such. The applications for cryptocurrency are becoming more and more widespread, and will only continue to do so if governments choose to participate in the process rather than just regulate for their own benefit.