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On Tuesday, 2 August 2016, one of the largest US$ trading bitcoin exchanges based in Hong Kong, Bitfinex, was on the unfortunate end of a cyber-attack that resulted in a net loss of 119,756 bitcoin worth a massive US$72 million at the time. As Bitfinex ceased all trading and shut down operations, we saw what we’ve come to expect following this kind of security breach. The price of bitcoin plummeted, losing approximately 23% from a high point at the end of July 2016.
While Bitfinex is still in the process of investigating the incident, there’s not much they can do to compensate the account owners who’ve lost their coins as a result. This is an ever-present risk in the exchange environment, and a prime reason why there’s still much confusion around the security of bitcoin.
To clarify my last point above - Bitcoin itself remains a practically impenetrable network, it’s an exchange’s platform that remain susceptible to hackers. This is why we, as Bitstocks, take extreme measures when it comes to keeping our clients’ fiat and bitcoin accounts secure and safety is one of our critical areas of focus.
And whilst we certainly aren’t delighting in the fact that Bitfinex’s vast client base have lost wealth we can’t ignore the opportunity the resultant drop in bitcoin price posed to us and our clients.
We advocate bitcoin as a long-term investment, which means not acting emotionally on most daily or weekly ups or downs from usual market trading. Generally speaking, they’re marginal movements and don’t do much to provide an exponential return on investment. This latest event, on the other hand, is a perfect occasion to secure larger volumes of coins at a low price.
It’s our view that a dramatic recovery will begin within the next few days and continue to see upwards movements over the following weeks and months. In fact, we firmly believe that bitcoin is on a trajectory to reach, if not exceed, the all-time high of November 2013 before the year is out. All fundamental factors point towards a $1,000+ price tag being achieved in the latter months of 2016. A key reason we’re taking advantage of the unexpected dip to bolster our bitcoin holdings in anticipation of a beautiful climb, what we term in the bitcoin community as ‘ , where bitcoin price soars.
A trip we’re more than ready and happy to take! Why not join us?