Can Bitcoin Come Back from Multiple Hacks?

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Feb. 14 (Bloomberg) –- Boston University Master Lecturer and Former Federal Reserve Bank Examiner Mark Williams, Blockchain Chief Security Officer Andreas Antonopoulos and Bloomberg’s Matt Miller discuss the vulnerability of digital currencies after Bitcoin was hacked multiple times last week. They speak to Trish Regan and Alix Steel on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)

Bitcoin total newbie with do that.

We only lost about 0.02 bitcoin, but it was a good lesson.

This is the issue that is part of all this.

It seems like it going, like anything else up there, can get hacked.

Well, if you go to the middle of times square and open your wallet with a few hundred bills at midnight with no cops around, somebody might take your cash.

This does speak to the vulnerability of digital currency when you have one attack and it all goes to pot, excuse the expression.

That is correct.

What we have seen in massive attacks, it is really questioning the viability of these e currencies.

The confidence consumers can have that they are not going to be hacked and lose everything.

These are untraceable currencies.

What that means is if you lose it, that's it.

That's wrong.

They are traceable currencies.

Even more traceable than u.s. dollars.

You can see exactly where they are going from an coming -- coming from and going.

It is easy as long as you're willing to download nine gig about of block chain.

There were service attacks against atm networks about a year back and nobody said the dollar was going to crash as a result.

Withdrawals are back online.

They are continuing.

The glitches were fixed.

The network was never affected.

The block chain trust was never violated.

No funds were stolen from the bitcoin network.

We have seen a lot of hysterical headlines and are hearing a lot of hysterical fear mongering, but the block chain system was not affected.

The network is now more resilient than i was before.

But here is my concern.

Everybody says there is a limited amount of it going out there.

Only so much can be mind.

It is an infinite amounts.

As opposed to fed policy -- a printing machine you can run whenever you need it.


But who is to say that some computer expert couldn't put more bitcoin out there and hack all of that?

And therefore depress the value.

Because that's not how the protocol works.

The protocol is based on trust through computation rather than access control.

That means that computation secures the network and you can allow everyone to join and innovate at the edges of the network.

You cannot forge or print bitcoin on your own.

That is not how it works.

I want to get your take on what you think it would actually take for bitcoins to become more mainstream and more secure.

Sure, i think there are many things that need to happen.

First, confidence has to come back into the market about virtual currencies, in particular bitcoin.

The coin has to stop having high volatility.

We can see it move anywhere between 20%-30% in a given day.

This weekend alone, we saw bitcoin dropped from $102 to $600. that is kind of a flash crashed too, but we did not question the volatility of the dollar at that point.

The dollars don't move like that.

The liquidity of the currency is increasing over time and as a result, volatility goes down.

We don't think when the nasdaq has a flash crash that is the end of the dollar.

We will leave it there.

That is misinformation.

It is misinformation because it only took 6000 bitcoins to move that market by 80%. because it is a small liquidity pool, but other markets have had flash crashes

This text has been automatically generated. It may not be 100% accurate.


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