Are Cryptocurrencies Trustworthy?

First created in 2008, the cryptocurrency Bitcoin has become a technology that is now available to everyone, regardless of any institution or organization. Experts on crypto coins, whose total market value exceeds $ 700 billion, draw attention to the risk of theft because crypto coins are a technology that is the target of cyber attacks.

Üsküdar University Computer Engineering Department Faculty Member Prof. Dr. Serhat Özekes made evaluations about crypto coins whose market value has increased in recent days.

Stating that the first crypto money was produced in 2008 under the name of Bitcoin, Prof. Dr. Serhat Özekes continued his words as follows: “Bitcoin has the feature of being the first decentralized crypto money. As it is known, it can be exchanged for Turkish Lira, US Dollar, Euro or other currencies at any time. The Bitcoin system was designed to produce a total of 21 million Bitcoins. As of December 2020, 88 percent of all Bitcoins have been produced, with 18.5 million units, and the market capitalization is approximately 600 billion dollars. Considering that the production of Bitcoin, which is nine hundred pieces per day, is becoming increasingly difficult, it is estimated that the last Bitcoin will be produced in 2140. Although the first and most widely used cryptocurrency is Bitcoin, there are more than 2,300 cryptocurrencies. The total market capitalization of cryptocurrencies is over $700 billion.”

Prof. Dr. Serhat Özekes explained the reasons why cryptocurrencies are popular as follows:

·       Those who believe that cryptocurrencies like Bitcoin will be the currency of the future are in a race to buy them before they gain even more value,

·       Those who rely on the blockchain structure, the technology behind cryptocurrencies, believe that the decentralized transaction and registration system is more secure than traditional payment methods,

·       Speculators who make money from instant value increases also see cryptocurrencies as a source of income.

Easy to use attracts investors

Özekes, who stated that it is possible to keep user identity information confidential in purchases made using crypto money on the internet, said, “Due to the fact that it is difficult to follow, crypto money is mostly used in illegal purchases in the dark web environment, which constitutes a large part of the internet environment and expresses the dark side of the internet. In addition, online wallets, mobile wallets, offline wallets, physical wallets and paper wallets used to store crypto money, which are seen as investment tools with its increasing volume, are often preferred by investors due to their easy use. Cryptocurrencies, which can be transferred very easily and quickly, are stored in virtual wallets and can be used for purchases on the internet. Buying and selling Bitcoin is a very easy and fast process. However, the most important point to be considered during this process is security. Before buying cryptocurrency, it is necessary to make sure that the platform to be traded is up-to-date and protected by SSL, which is a kind of security certificate.”

Cryptocurrencies are the target of cyber attacks

Özekes, who said that crypto coins are a technology that is the target of cyber attacks, said, “Hacking is a serious risk because there is no way to get back lost or stolen bitcoins. Even with the protection of a smart wallet, there is a high probability that cryptocurrency exchanges will be hacked. Additionally, if you have a wallet and you forget or lose your key, it can take a lot of work to get your cryptocurrency. Cryptocurrency wallets should be carefully researched to make sure you have the most reliable option. In addition to being hacked, there are also fraud incidents in the crypto money market. Buyers and sellers want to trade cryptocurrencies online, but due to their growing popularity, some of the exchanges where this trade takes place may be fake.”