Home » Articles » Reasons why Bitcoin crimes has reduced when compared to the previous year Reasons why Bitcoin crimes has reduced when compared to the previous year Posted by: Anonymous September 22, 2018 in Articles , Featured Leave a comment
The relevance of cryptocurrency in the world economy is increasing and many believe that bitcoin and crime go hand-in-hand because blockchain technology does not need any formal registration before one could create an account.
However, it could be noted that an official of the US Drug Enforcement Agency had last month said that cryptocurrency crimes dropped by 80% with bitcoin contributing only 10% of such crimes presently, irrespective of its large volume of trades and holders. This could be seen by the publication on cointelegraph that US DEA crypto crimes dropped by 80% .
Here are several reasons that Bitcoin crimes are reducing tremendously: There is an increase in altcoins. There is an increase in hard forks across multiple cryptocoins. There is an increase in the investment on security of assets. There are more security experts in the industry.
Many successful prosecutions of scammers and hackers. Increased government regulations. More cold wallets on the market. An interest and increase in knowledge among Bitcoin users.
Increase in the number of altcoins
There has been a steady rise in the number of altcoins that have been added to the market.
Presently, there are more than 1,600 active altcoins in the market. This has made it hard for most cyber related crimes to be concentrated on Bitcoin.
Hence, there is a share of such crimes presently in the cryptocurrency market.
Increase in the number of its hard forks
The Bitcoin market is witnessing an unprecedented increase in the number of developers into the blockchain. This has made it hard for most of the Bitcoin developers to agree on some important issues that could affect the Bitcoin ecosystem. Hence, a continuous release of updates software which had been used in the successful hard forks of Bitcoin or splits.
This splits or pushes the attention of some of the nefarious elements out of the Bitcoin ecosystem since they tend to try their luck with these new Bitcoin forks.
Increase in the investment in security of assets
Many Bitcoin enthusiasts spend time protecting their investment with a hedge fund investment firm as well as cryptocurrency exchanges. This has made the firms and exchanges to invest more on security of their sites with top security outfits.
More intakes of security experts in the industry
It is good that skilled workers in Linux, Python, Oracle, Java and other security related computer skills are gaining entrance into the cryptocurrency business and exchanges. This has made it hard for some hackers to gain entrance into the funds of the people since experts send warnings to users to change their passwords and also to activate two factor verifications before transactions could be permitted.
Successful prosecution of scammers and hackers
It should be noted that there has been a rise in cases regarding the prosecution of suspects involved in Bitcoin and cryptocurrency crimes.
This has served as a deterrent to those who would have tried to use their knowledge in such areas. This year had been a very good one for the Bitcoin community such as it was recently announced that victim of the 2014 My.Gox exchange scam should register for refunds which could come up not later than Feb next year, even though that they had waited for more than 4 years for it.
Increase in government regulation
There is rise in the number of government agencies that are interested in regulating the cryptocurrency market.
This has made it hard for many exchanges to allow their sites to be hacked since the government expects them to refund any money lost. Also, exchanges are aware that the challenge of protecting user funds. Moreover, Bitcoin futures trading has not been approved by the Security and Exchange Commission.
Use of cold wallets instead of hot wallets to store the coins
Hot wallets unlike cold wallets hard been susceptible to crypto crimes.
Hence, exchanges and individuals store most parts of their bitcoin in cold wallets instead of hot wallets. This has reduced the impact and possibility of the exchanges losing their assets in cases of hacking into their system.
Increase in the knowledge among bitcoin users
Bitcoin users have learned improved and better ways of recognizing phishing sites and also ways to protect their wallets.
That has reduced Bitcoin theft as recorded in past years.
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