It is important to note how the dynamics of cryptocurrency play out in this ‘hack’. While the perpetrators may have had bad intentions and criminal motivations, how exactly did cryptocurrency allow them to find value in doing the deed? Imagine if there was no dependable, expeditious and online method of carrying out an anonymous transaction. The hackers would have then had to take one of the following 3 options:
1. Create offshore entities, accounts and funnel the money through multiple jurisdictions, in varied values to mask the real beneficiaries
2. Deal in lots of cash with a customer who may be across the world
3. Figure out a barter and find a way of validating the sale/transaction In any of these options, the time & risk would have increased substantially leading to a commensurate increase in price.
These options also had no in-built trust mechanism and hence would have led to a further increase in prices. This is what illustrates the true drivers of value and risk, when it comes to cryptocurrency – Time, Trust and Anonymity. It is now up to regulators and users to figure out how to regulate this amazing technology and money system.
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