Dogecoin, a digital currency very similar to Bitcoin, was hacked during the holidays resulting in a total of 21 million coins stolen. Although the millions of Dogecoins stolen only equates to a loss of about $12,000, it shows the vulnerability of digital currency.
Dogecoins were originally made as a joke, by creators Jackson Palmer and Billy Markus yet it caught the attention of many people on the web as an intriguing source of currency. Worth about eight million dollars, Dogecoin is no laughing matter.
Value of Dogecoins
One dogecoin is currently worth $0.00043, less than a penny. Despite being made as a joke, there are many people that prefer to use Dogecoins over any other form of digital currency. Dogecoins are primarily gifted and used for small online purchases.
Dogecoins caught a lot of buzz on Reddit, where it has a strong backing by the community. The currency caught the interest of so many people, in Dec. it rose over 400 percent in value in a single day. That is the highest increase that has occurred outside of Bitcoin.
Less than a month after its launch, Dogecoin had earned its place as one of the top 10 digital currencies available on the market. But, the recent hacking of the digital currency has dropped it down to number 14.
The hacking shows vulnerability of digital currency
The hacking of Dogecoin shows just how vulnerable funds managed through digital currency can be. Hackers can easily steal money from virtual wallets to leave those that have invested into this type of currency with no money. Dogecoins aren’t the only form of digital currency that were hacked. Recently, hackers managed to steal $1.2 million from Bitcoin at the end of October.
When a hacking occurs to digital currency, it affects those whose funds were directly stolen, as well as those who did not. Hacking shows the risk of digital currency and makes it less appealing to investors, which drives the overall value of the currency down, resulting in a loss for everyone.