Threats the CryptoCurrency Industry is facing

Threats the CryptoCurrency Industry is facing

Cryptocurrencies are digital money that exists in the secure network powered by the blockchain technology. This form of money does not require the presence of a bank or intermediary to affect its transfer. The transfer happens on a peer to peer network. It also follows encryption in the transactions to ensure security and confidentiality of the transactions. These are some of the distinct features of this virtual currency that has made it an instant success among people. However, the increasing popularity has had its own positive and negative outcomes. We are going to see some of the threat that this industry is facing or likely to face in future.

The arena of cryptocurrency network is also host to numerous cyber crimes and scams. It has opened up new possibilities of funding malicious activities as well.

Theft of digital wallets – The hackers can re-direct the money transacted to the digital wallets by changing its address. They can also transfer funds to undesirable activities.

Ransomware attacks –The cybercriminals will target people with the malicious software that will threaten to divulge their personal details until the required ransom is paid in form of cryptocurrencies. These transactions are anonymous in nature and nobody will know the source of the funds.

Public or company resources used for mining – Mining is a rewarding yet costly affair. The increasing popularity of mining will prompt employees to use the company resources to perform mining.

Crypto Jacking – is another threat where a form of malware is used to install the mining script onto the computers of unsuspecting users. Their systems and electricity will be used to mine cryptocurrencies without the knowledge of the user.

ICO setbacks – The ICO were successful initially but the increasing number of scams may reduce the popularity of this form of crowdfunding.

Though there are threats to this industry, there has been an increase in the number of people who are joining this network through mining or trading these virtual assets. Bitcoin code is a powerful online trading tool used to buy and sell cryptocurrencies. This source gives useful information about trading on this website.