Although the blockchain technology had been promoting itself as reliable due to its privacy and security, the past few years had shown us that in the absence of a well-structured design, even blockchain-based solution can have weaknesses. Cryptocurrency projects are relying on it, promising to offer some of the best measures to keep users’ funds protected. As a result, the industry is currently divided among platforms that work based on public blockchains and private or permissioned blockchains focused on enterprise use.
Do cryptocurrencies provide enough security?
If we take a look at how the cryptocurrency industry evolved, it’s easily noticeable that individual users had started the adoption and now the transition towards institutional adoption takes place at a very slow pace. Corporations are not yet convinced that blockchains, such as the one powering Bitcoin, can be secure and reliable enough, which leads them to start investing in private software solutions.
It is the case with the social media platform powered by IOTA, which we’ve discussed recently, as well as with many other projects that want to provide innovative solutions able to be integrated into the global economy.
When it comes to security in terms of traditional cryptocurrencies security, opinions are mixed, but some experts continue to believe that tokens like Bitcoin are secure enough right now. According to cryptocurrency analysis firm CipherTrace, which recently spoke with Cointelegraph:
A well-validated, open-source blockchain, such as the Bitcoin blockchain, provides the level of security to assure the average user that their transaction data has not been tampered with.
Valuations not indicative of low trust
Although cryptocurrencies might have a lot to improve, market valuations are encouraging right now. Bitcoin is on high heels after the successful halving, while the rest of the market had managed to rebound nicely following the March dip. Cryptocurrency investors had not been reluctant to pour money into the crypto market, despite above-average volatility.
Cryptocurrencies were well-known to be highly volatile instruments, but not that stocks are moving wildly, the crypto market begins to look appealing. Additionally, all investors are looking to get a diversified portfolio and protect their purchasing against the fiat devaluation. Central banks and governments will continue with aggressive monetary and fiscal measures, which will put pressure on fiat currencies. As strange as it might seem, cryptocurrencies are safe and provide an uncorrelated alternative for investing. Markets are flushed with liquidity right now and risk appetite is elevated, as a result.
Add Comment