Market Extra: Bitfinex hack shows how bitcoin’s blockchain can be a liability

Bitcoin’s blockchain is often touted as a revolutionary step forward for network security. But Tuesday’s theft of nearly $68 million of customers’ bitcoins from a Hong-Kong-based exchange demonstrated that the currency is still a big risk.

Bitfinex, one of the world’s largest cryptocurrency exchanges, has yet to release any details on how it was hacked.

But massive bitcoin US:BTCUSD security breaches like the one at Bitfinex and the attack that bankrupted Mt. Gox in February 2014 highlight the need for the cryptocurrency community to find a compromise that would allow the so-called blockchain to be more flexible so victims of theft can recover digital currency that has been spirited away by hackers.

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