Critical Weaknesses of Cryptocurrencies

Slate’s Moneybox is reporting that $50,000 in DogeCoin have been stolen from DogeVault in an apparent hack.

It’s a good thing that hacking can’t result in the loss of traditional currencies.

Some may be tempted to argue that in the case of the recent cryptocurrency breaches, the people who bore the primary costs of the hacks were the individual owners of the coins, whereas with the many, much larger traditional currency and credit card breaches, the costs mostly devolved the banks and merchants.  But that’s just a matter of insurance — and ultimately, the end user pays for the insurance (or the taxpayer does).

This isn’t to say that you should go out an invest in cryptocurrencies — you probably shouldn’t.  But also remember that the fiercest opponents of cryptocurrencies dislike them for political reasons, not economic ones.

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