Case in Point for Bitcoin Needing to Act More Like Currency …

I read an article today on Coindesk that once agaian reiterates my position on the need for Bitcoin and the ecosystem to grow up. There are many mature players in the space and this post is not about them, it is about the get rich quick aura that bitcoin seems to have.

Bitcoin mining is the same as any other business that produces, manages, transfers, or exchanges money for goods and services. It’s different in that even though a lot of people don’t think crypto currency is money, if it’s their crypto currency they act like it’s their money. Especially when it is stolen Once again perception is reality.

So the article reports on a $190,000 theft. Some of what was stolen are rigs – worth $160k – and the rest in Bitcoin stashed in a ‘secret wallet’. The alleged perp used at least one alias – John Simms – and used it to dupe Digital Mining Investments out of gear and cash, so this was a sophisticated take down. I have to wonder if using typical safeguards of background checks, 24×7 security, cameras, physical and logical deterrents would have deterred the outcome.

I won’t Monday quarterback this, instead I will use it as another example of why Bitcoin and the cryptocurrency world needs to adopt some grown up operational standards. The more cryptocurrencies are adopted as money, the more people expect it to be treated like money. Things that banks would do to protect their customer’s data, cash, and the bank’s infrastructure need to be employed more diligently. For all the investment in Bitcoin that has happened in the past two years, the assumption that the currency is mature takes a hit when stuff like this happens. Why? Because we know better.

It’s time for a new breed of facility for this cryptocurrency market. A facility like the one it sounds like the folks at The Coin Foundry are raising money for. It makes sense and it’s time. The facilities that exist for the enterprise are overbuilt and based on 30 years of technology innovation that is on the cusp of being eclipsed by new ASICs being developed to service the mining space for all crypto currencies.

Time to make the cryptocurrencies look more like it and be treated like they money they are.

 

 

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