Although the past week and a half have not been overly positive for Bitcoin, the cryptocurrency remains very resilient. The Bitfinex hack could have easily crippled any other currency or investment vehicle, but not Bitcoin. Although some media outlets blame this as the Bitcoin network being hacked, nothing could be further from the truth.
An Exchange Is Not The Bitcoin Protocol
To put things into perspective: a Bitcoin exchange being hacked does not mean there is something wrong with the Bitcoin protocol. Exchanges act as centralized companies who work in a decentralized environment. While they are not banks in the traditional sense, they are a place to buy, sell, and even store Bitcoin.
Whenever a Bitcoin exchange is hacked, think of it as a bank losing money. If that were to happen, it does not make money wrong. Nor does it mean money is flawed at its core, as it is an isolated incident that has nothing to do with the ‘protocol” of money as we know it. The same applies to Bitcoin, as the technology powering the network is unhackable and far more secure than any other form of transferring value in the world today.