2018 was a difficult year for the cryptocurrencies market.
The currencies saw a massive decline of more than $700 billion in market value.
Bitcoin, the poster child of the currencies has seen its market cap drop to
about $60 billion from a high of more than $300 billion.
Part of the reason why the cryptocurrencies saw a massive
decline last year was on security. People did not believe that their holdings
were safe in the exchanges. This was compounded by the massive theft of
currencies that happened during the time. In fact, recent reports show that
cryptocurrencies worth more than $1 billion was stolen in the year. One of the
biggest hacks was the $500 million hack of Coincheck, a big Japanese company.
Therefore, with the security of the currencies at stake,
many investors decided to exit their trades, which led to a sharp decline. With
all this in mind, the least the industry wanted this year was more uncertainty.
This happened recently when a big Canadian crypto exchange
announced that its CEO had died while on a trip to India. The CEO and the
founder of an exchange known as Quadriga died in December. According to court
filings, he was the only one with the passwords that had access to the coins.
The total coins were worth more than $137 million. Experts brought in to hack
the system with the goal of getting access have been unable to access the
coins.
The death of the CEO raises questions on security and
regulations. On security, the question is on how secure the currencies are in
the major exchanges. Second, there is an issue on regulation and how such
matters should be sorted out. The chart below shows the performance of the
three biggest cryptocurrencies in the market.
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