Internet hackers are on a rampage, it seems.
At the end of 2017, NiceHash succumbed to this tragic reality.
With at least one bitcoin hack occurring each year, it makes you ask, should I invest in bitcoins.
Marko Kobal, NiceHash Chief Executive Officer (CEO), released a statement that “Yesterday morning at about 1 a.m. a hacker or a group of hackers was able to infiltrate our systems through a compromised company computer.”
Due to the bitcoin hack, this cryptocurrencies website halted all transactions for at least 24 hours. The so-called largest digital mining marketplace, needed time to regroup.
The NiceHash team released their statement once they discovered that over 4,700 bitcoins disappeared.
In Asia, back then, they were worth over $75 million dollars.
That is a lot of money missing from the NiceHash wallet.
What is Cryptocurrency?
Most people know about bitcoin.
But there are other types of virtual coins. They come about by computer mining, with the use of intricate algorithms.
A NiceHash miner can do mining activities and earn other cryptocurrencies.
There were more than $1 billion dollars mined and sent to NiceHash wallets, since the company’s inception.
That’s about $250,000 every year.
Huge nicehash profitability!
Regardless of what naysayers argue, the value of bitcoin improved, so all cryptocurrency owners are enjoying their investments.
However, this bitcoin has many bitcoin owners nervous. It is not the first of its kind and seems to be a common occurrence.
So too is robbing a bank, but in that case, your bank balance remains untouched.
The company did the responsible thing and informed other mining sites and other bitcoin exchanges. This will allow the company have a better chance at recovering the hacked coins.
The NiceHash Breach
Hackers used the compromised login information for one of the engineer’s.
It was this route that lead to the hacking.
Kobal reported, “Given the complexity and security of the systems in place, this appears as an incredibly coordinated and highly sophisticated attack.”
What he did not disclose is whether user accounts suffered due to the bitcoin breach.
As usual, they encouraged users to change their login information, to secure their accounts.
Recurring Bitcoin Hacks
But how secure could it be, some may wonder, if the company’s security, albeit reputation is jeopardized due to these bitcoin hacks?
Though the company is working with all relevant agencies to investigate the incident, still, it makes potential cryptocurrency investors nervous.
Mt. Gox is still at the forefront of many people’s mind.
In 2014, Karpelès, the company’s CEO went to jail for stealing over 850,000 bitcoins. Authorities discovered later that the company got infiltrated by hackers.
Even though they later found 200,000 in a hidden bitcoin wallet.
Regardless, the CEO is still a piranha and undergoing criminal proceedings in Japan.
The recurrence of cryptocurrency hacks and repeated exploitation of its vulnerabilities is a deterrent for getting involved with online investment platforms such as these.
Bitfinex Bitcoin Hack
Another cryptocurrency exchange platform, Bitfinex, had their bitcoin hack incident.
The company, which is located in Hong Kong, had to also stop all activities, for a while. The stolen amount totaled over $65 million dollars. That is 120,000 bitcoins disappearing from right under their noses.
Bitstamp Bitcoin Hack
As if that was not enough, Bitstamp, a company out of Europe, lost 19,000 bitcoins as well.
That averages to about one bitcoin breach each year, for the last three years.
Purchasing cryptocurrency is a high-risk investment decision.
Take the Necessary Precautions
FireEye, a cyber security company cautioned investors in recent times that hackers out of North Korean are becoming more active and blatant in their efforts to swipe bitcoins.
After all, even Kim Jong Un’s regime needs money.
Going Forward with NiceHash
This is not an area for the faint of heart.
Investing in bitcoins, mining for bitcoins, lending or selling bitcoins takes nerves of steel.
It is a new niche and will be tried for many years to come.
Take the necessary precautions. Practice sound investing, use your nicehash calculator and maybe spread out your bitcoins across several platforms. Pull out some of those dividends and watch the market carefully.
Listen to bitcoin news.
You should also practice safe internet strategies.
Do not leave your bitcoin or NiceHash account open on multiple devices.
Use computer generated or complex passwords that are not easily guessed. No birthdays, no nicknames, no phone numbers and certainly use a unique password.
One that is not used on other platforms.
Do not open your account on public computers or using public access Wi-Fi.
We have seen that many websites have been hacked, but we do not learn of them until several years afterward.
Nicehash is trying to assuage its customers and enforce greater security measures.
What do you think, should they be forgiven?