What is cryptocurrency?
Can cryptocurrency be hacked?
While the actual structure of a cryptocurrency is extremely difficult to hack, the exchange platform where you trade money for cryptocurrencies like Bitcoin or Ethereum can be hacked. One of the most famous hacks was the Tokyo-based MtGox hack in 2014 when over 850 000 bitcoins valued at over $350 million disappeared from the exchange platform.
The value of cryptocurrency
Like any currency, each cryptocurrency has its own trading value. The price of one Bitcoin is currently worth R49 343. Like normal currencies, a cryptocurrency’s value only comes from people willing to accept them as payment. If something adverse occurs to the cryptocurrency market, like the hacking of an exchange, the value of cryptocurrencies tend to decline accordingly. Similarly, if more people want to buy a cryptocurrency, the price will rise.
2019 sees a rise in cryptocurrency markets
In early February of this year, Cryptocurrency markets suddenly saw a surge in bitcoin, ethereum and litecoin prices, following months of market stagnation. The surge in the market is a relief to investors who have been witnessing an on-going decline in prices ever since bitcoin reached a high of close to $20 000 at the end of 2017.