It was inevitable.
When you hang around a burning fire, you’ll eventually end up getting burned.
I’m talking about the cryptocurrencies phenomena.
Recently they’ve been rewarding investors with obscene profits. (Bitcoin is trading over $8,000 from $455 LAST YEAR)
So, like we mentioned in our October newsletter, it was only a matter of time before a crypto casualty strikes. (Archives HERE)
What’s funny is the recent screw-up was an accident.
It was caused by an unsuspecting developer who mistakenly took possession of an estimated $390 mil of Ethereum. (Ethereum is the second largest cryptocurrency)
When he tried to put it back he ran into a series of bugs (placed by hackers) and accidentally locked up the funds PERMANENTLY.
The money is gone…evaporated into cyberspace.
Without getting too technical, let me try to describe to you what happened:
Hackers got into the crypto “wallet service” and stole roughly $42 Million.
When the victims “blockchain technology” was violated, they tried to patch it up. Unfortunately for them, a guy called “devops199” introduced a bug and unintendedly took control of all multi-signature wallets. (These “wallets” are for security purposes and require several people to enter key codes before money gets transferred).
When devops199 tried to reverse the process, he set off a chain reaction of events that locked-up all the multi-signature wallets.
Like I said earlier…the money is gone…permanently.
$390 Mil ain’t chump change.
So, all you Bitcoin fans need to realize something. Despite all the claims of “secured transactions,” anything can be hacked.
Period.
There’s fortunes waiting to be made (and lost) in cryptocurrencies.
However, you need to understand the risks.
Don’t get burned.
Find out how the banks and governments are dealing with cryptocurrencies (HERE)
You’ll thank us later.
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