Cryptocurrencies fall in value after South Korean hack

People aren't yet so sure who to trust

A hacker in South Korea allegedly stole approximately $40 million off of 'crypto exchange' platform Coinrail, and people panicked.

What it means: Cryptocurrencies (digital currencies whose use is managed by encryption, rather than any kind of bank or government agency) are still a fairly new thing. People were interested in them because they're not controlled by a central bank, so felt like a more grassroots way of doing banking.

But US regulators are already investigating a few 'crypto exchanges' – platforms where currencies are bought and sold – for allegedly fiddling with the prices of their currencies.

A lot of the people investing in them don't necessarily work in finance, or hold other shares, so when they hear about news like that, or hacks like this, they scare easy, thinking it's perhaps not as safe an investment as they thought.

Case and point: when news broke that a South Korean hacker had got into crypto exchange platform Coinrail, people sold off $46bn worth of holdings. Bitcoin dropped in value by 11 per cent. It's already been dropping since January, and has lost 53 per cent of its value this year so far.

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Reader Comments

  • RW

    Your right to a degree. You mentioned “the wandering Jew”.

    I elaborate that the Jewish people, historically have tended to migrate almost exclusively to locations that are economically and culturally vibrant already. I would speculate that Jews have thrived in these places and have often improved the bounds of their economies and knowledge base.

    You can also ask; how many massive entertainment conglomerates, Nobel winners or billionaires has Isreal developed? If Jews are so capable, why isn’t Tel Aviv the Rome of our time?

    Jews are successful because they value education, maintain a strong social cohesive, they actively monitor and have a good sense for Zeitgeist wherever they are and they carefully choose the places they settle and congregate themselves heavily in these choice locations.

    But most importantly (haulocaust increased the importance of this aspect), they actually designed their culture for success. They not only attend Harvard, they use what they learned to better the group as a whole. With as much, they studied intricate networking systems, adapted to it and in many cases improved upon them. (See how Japan acquired Aegis warships and made them better).

    Of course there is nothing wrong with any of this. It’s when you elaborately gain disproportionate power in any society where you would stand out, you must take care when attempting to make a society better (Civil Rights movement) and rewriting that society all together (mass immigration). Ask blacks in China, Mexico, Philippines or India how much opportunity they have? Go to businesses owned by their American diaspora and see how many blacks they hire. Go to Silicon Valley and see how many East or South Asian tech workers wish they could work with more black people. California might work as a state, but as a nation, I think your rolling the nuclear dice here. I hope we can succeed as a tolerant pluralistic superpower but at this stage in human societal development, it’s a pipe dream.

    And if Jews really are the icon for success, they would see that fundamental human successes happen over generations. Just look at the rest of the planet? Are we ready?