Bitcoin Thefts on the Rise: Increased Value to Blame

With Bitcoin finally cracking the $1,000-per-coin barrier for the first time in its short history, people are more concerned than ever before about the safety of their brand new decentralized currency system accepted by more and more vendors every day.

Just earlier this month, a payment processor based out of Denmark Bitcoin Internet Payment System (BISP), suffered a major defeat from a denial of service attack which served as a smokescreen for the real heist taking place behind the scenes. Hackers drained the digital wallets of hundreds of users in a single keystroke, netting 1,295 coins, or nearly $1 million when all was said and done.

“On November 15th BIPS was the target of a massive DDoS attack, which is now believed to have been the initial preparation for a subsequent attack on November 17th,” Kris Henriksen, the CEO of BIPS, said via Reddit. “Regrettably, despite several layers of protection, the attack caused vulnerability to the system, which has then enabled the attacker/s to gain access and compromise several wallets.”

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The lack of dependable security isn’t the only thing keeping early investors at bay, as the pure volatility of the currency continues to fluctuate wildly from rags to riches every few months.   In 2011, for example, the currency’s value fell from $33 to just $1 per bitcoin before rising to more than $900 earlier this month on MtGox, the world’s biggest bitcoin exchange. But that bubble burst the next day, when the value of bitcoins fell by half. As of early Wednesday, however, the currency’s value had once again skyrocketed, trading at more than $980 on MtGox.

As this 4-year old idea continues its path and evolution toward its place as an independent, decentralized currency used around the world, there’s bound to be a few bumps in the road. In these cases it’s clear that most of the responsibility to remain safe rely on the technical skill and security knowledge of the wallet owners, so if you’re planning on buying into the new hot fiat on the block, make sure you are using one of the best VPN providers in the business to protect your bandwidth bank from getting busted!

Private Internet Access is running special deals today through Monday, and will happily accept any denomination of Bitcoin you’d like to pay to gain access to their award winning service!