Hundred Billion Dollars U.S. Cryptocurrency Market Under Threat, Report
According to a recent report published by the Nobl Insurance, $100 billion US cryptocurrency market is under a serious threat by the recent rise in cyber-attacks targeted to the industry.
The report basically focused on the awareness of cryptocurrency holders in the region and their understanding of the possible attacks that can be launched on them to steal their digital assets. Though the cryptocurrency market in the country has grown to $100 billion, related crime has increased by 300% yearly since 2017 according to the report.
Bitcoin recorded its all-time high of near $20,000 on December 2017, and since then, the desire for hackers to target exchanges and individuals have greatly increased. Out of the total number of respondents, 64% admitted having no idea of the amount of hacked cryptocurrency. They believe that the total hacked cryptocurrencies may be less than $50 million instead of the actual $1 billion. Also, 65% of the respondents admitted that their cryptocurrency exchanges are vulnerable to cyber-attacks.
The report further established that 48% of individuals holding less than $1000 of cryptocurrency in the US are not very much concern about losing their assets while 52% showed concern. The number of holders who have no concern whether their asset is hacked or not forms a smaller portion of the total holders of the hundred billion dollars in the US cryptocurrency market.
A leading cybersecurity expert and a contributor to the report, Dr. Terry Lee Cooper, revealed that the US cryptocurrency market would greatly be affected if nothing is done about it.
According to him, if cyber-attacks targeted at the market continues to increase by 300% annually, a total of $12.78 billion would be stolen by hackers by the end of 2020. He further stated that the total amount of stolen can increase to $38.3 billion by the end of 2021 if the rate of crime increases at the same pace.
By the end of 2022, the $100 billion US cryptocurrency market would be in danger as the amount stolen would increase to around $114.9 billion. The report reveals that this amount is enough to give a tax rebate of $348 to every citizen or even buy Uber.
The rate at which cybercrime is increasing has been a cause for concern as global leaders are making efforts to ensure the situation does not get worse in the future. In most cases, hackers do not directly launch an attack on exchanges or individuals to steal cryptocurrencies. They sometimes break into the security of big institutions and hold their sensitive data ransom as they demand cryptocurrencies in exchange for the company and customer data.
Brandon Brown, the Co-founder and CEO of Nobl Insurance also revealed that there are a lot of undocumented cybercrimes on cryptocurrencies happening globally. One of the motives for embarking on the research was to help trigger the sense of awareness of cryptocurrency holders to know the intensity of cyber-attacks targeted to the industry, and to understand that this can happen to anyone. Brown also stated that insurance is a part of the solution to halt the fast-rising cryptocurrency hacks.
He said Insurers, cryptocurrency community, exchanges, traders, cybersecurity experts and lawmakers need to work together to find a solution and improve security protocols else hackers would continue to steal digital assets right at their noses and leave a long term effect on the cryptocurrency market.