One of the world’s largest cryptocurrency exchanges, Binance recently witnessed a security breach in their network, enabling hackers to perpetrate a 7000 BTC heist. The hackers also stole millions of 2FA codes and a large number of API keys.
In the wake of the incident, Changpeng Zhao, CEO of Binance, announced that the exchange would be running a Reorg to rebuild and reinforce the security of the exchange, before scrapping it after public outrage and suggestions that the reorg will destroy the credibility of the Binance network.
While the Binance hack and the subsequent reorg debate made headlines across the twitterverse, The Block’s Larry Cermak put forth a very interesting argument about the hack.
Cermak believes that despite the fact that the hack cost the exchange around $41 million, the hack itself hardly affected the price of Bitcoin [BTC] or Binance Coin [BNB]. This was supported by the fact that the valuation remained the same before and after the hack for Bitcoin, while BNB experienced only a 6 percent drop. Cermak also argued that if this hack, the sixth largest hack in history, had happened two years ago, the price would have dropped by 10% or more.
Larry Cermak also added that he was suspicious about the hack having anything to do with Binance implementing SegWit since none of the exchange’s safeguards were activated.
He furthered his argument, stating that there were 44 outputs in the overall transaction, wherein 21 of them were Bech32 addresses. From there, 99.97% was sent to SegWit addresses. The assumption was that Binance didn’t implement SegWit in the system, which is why the system was unable to catch it when 99% of BTC was sent there.
Previously, CZ had tweeted about the fact that the reorg debate was making more waves than the Binance hack themselves.
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Bitcoin’s censorship resistance, freedom make it a game changer in the economic industry
Over the years, the global economic industry has witnessed significant changes. However, no change has been more significant or essential than the one introduced by the concept of virtual assets or Bitcoin. Today, Bitcoin and other virtual currencies are almost as essential as fiat money and despite the fact that digital assets have not reached worldwide adoption, the pace of growth has been substantial.
In a recent panel discussion, Jedidiah Taylor, CEO and Founder of Decent.Bet, the smart contract-based sports betting platform, stated that the idea of Bitcoin and blockchain technology projected a perspective of freedom and honesty which allowed individuals to have direct control over their own capital, without any oversight supervision from financial institutions.
The sentiment was followed by Nico De Jonghe, Founder and CEO of NDJ Investment Group, who added that the threat of decentralized assets loomed the largest over centralized institutions like banks, who were worried of the future prospects offered by Bitcoin and its impact on the long-term financial situation.
Tone Vays, a reputable analyst and Bitcoin proponent, opined and stated that Bitcoin’s biggest strength was the fact that it was completely “unconfiscatable” and that one’s BTC is completely safe if it is protected and secured with attention. The characteristic of censorship-resistant value transfer is also an absolute game-changer for Bitcoin, allowing it to competitively exist in the financial system.
The value of Bitcoin has often been criticized in the past, but its valuation has consistently proven its worth. In fact, Bitcoin has grown by more than 150 percent in 2019.
At press time, Bitcoin was priced at $11,371, with a market capitalization of over $202.18 billion. The staggering valuation of an asset that was unheard of 10 years ago, further underlines the potential of Bitcoin in the current market scenario and for the future economies.
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