[LINK] Cyber threats for bitcoin

[Jim Birch]

Stephen Loosley wrote:

“Unfortunately because of its irreversible nature, bitcoin requires near
> perfect security.”


Irreversible and untraceable. A magnet for criminals, both as an attack
target and as currency for illegal transactions.

-=-=-=-

Elsewhere: (real) central banks are looking at digital currencies.  These
will utilize a blockchain-like mechanisms but won't be untraceable,
actually the reverse.  This offers the same massive positive of bitcoin, a
"frictionless" currency with direct transfers unmediated by banks with
negligible transaction costs, but has other significant benefits.  This
would (will) be a complete shake up of the way banking currently works as
it eliminates banks capacity to create money, and supersedes the current
interest rate mechanism used by central banks for controlling the money
supply.  Governments will issue all money.  This is a new economic world.
It would also facilitate real time reporting and management of the economy.

The traceability will make tax avoidance and financial crime that much
harder.  Large "off-ledger" transactions will be extremely difficult to
hide.  Which is good news for most of us.

https://bankunderground.co.uk/2016/07/25/central-bank-digital-currency-the-end-of-monetary-policy-as-we-know-it/

Jim