The recent bitcoin exchange hack underscores the vulnerability of bitcoin exchanges, an issue that needs to be addressed if bitcoin is to gain a larger following, according to Megan McArdle, a Bloomberg columnist. (McArdle most likely referred to Bitfinex.)
Safeguards have been considered, such as a virtual “exploding dye pack”, but it remains to be seen if such safeguards will be accepted.
It took banks many years to develop safeguards that ultimately made bank robbery undesirable to criminals.
Bitcoin Theft Is Profitable
McArdle noted that bitcoins are comparatively profitable for hackers to steal.
Since the early 20th Century, bank robbing has become a less attractive option for criminals because of the safeguards banks have developed, McArdle noted. Banks have used bills marked with exploding dye, armed guards, and silent alarms to discourage robberies. Also, most businesses today follow security practices when accepting large amounts of cash so that if the money has been stolen, it will be easy to find the rightful owner.
Banks have also established systems to protect digital payments that ensure that digital funds are only in one place at a