Everything our modern society operates on is somehow linked to the cyber world, and the market for cybersecurity is still in its infant stages with no clear, emerging winners.
Everything we know and take for granted is exposed to exploitation by any individual or collective group with the technical and practical knowledge on how to do so. I want you to truly reflect on this because everything from water supply to electricity to communications is exposed to cyber exploitation, and once basic utilities go so does everything associated with it from a social perspective.
With the emergence of state-sponsored hacking tools being released to public domain, it is apparent that offenses are much better equipped than existing defenses.
Cybersecurity defenses are a reactionary force; a breach is only recognized once the offensive force has breached and escaped, more often than not without detection.
In other words, cyber is a defenseless space because those who have the resources and drive to exploit via enhanced offensive techniques can have their way with defenses that are reactionary.
NY Times wrote an article that warrants reading on what our national cybersecurity forces are up against.
Right now, the problem is that cybersecurity is perceived to be a defensive industry, yet it has shown us repeatedly that cybersecurity defense is lagging cyber offense techniques.
The reason for this is simple: there’s more money to be made in offense than defense.
Yet, we now stand at a point in time where this narrative is shifting. Defense is becoming less about making sure emails cannot be stolen and more of a necessity for a functional economy, infrastructure, and even a nation-state as we know it.
Not only that, but we now stand at a point where everyone is so vulnerable that anyone can hack into anyone’s personal affairs, it does not necessarily have to be a computer-savvy expert. All sorts of hacking kits and phishing schemes are for sale online nowadays, meaning that anyone can hack anyone if they have the will to do so.
This applies to everyone who has any sort of online presence, which is everyone. You are exposed, even if you think you are not, and this applies especially to cryptocurrency investors.
I picture the state of cyber much like this clip from We Were Soldiers, it’s a broken arrow situation of utter chaos.
I have long felt that another headline grabbing hack of an exchange in Binance, Bitfinex, or Coinbase was inevitable, simply since no defense has proven impenetrable, not even that of US Military Cyber Command.
If our most sophisticated cyber experts are unable to secure assets and information, what makes you think that a bunch of private citizens working at a startup are any more capable?
Throw into the mix that the incentive to hack a Binance, Bitfinex, or Coinbase is simply too large to ignore now following the rise in value of digital assets, and it appears quite clear that a cyber Black Swan event is due.
The moment we realize that we are all exposed to this risk is the moment that we realize we must ensure we are not the low hanging fruit. Make yourself as difficult to hack and exploit as possible.
For investors looking to enter the crypto marketplace, I highly recommend you revisit my how to post, here.
While I have been perusing the traditional beginning of 2018 market predictions, mine is straightforward: one of the names below will suffer a major security breach in the next 12–18 months.
The ramifications when this occurs are anybody’s guess. Undoubtedly, the broad crypto market will decline substantially as the thieves liquidate stolen funds and provide selling pressure, and only those who fully understand the space and its history will survive. Those who comprehend the importance of taking personal responsibility for securing one’s own assets, private keys, security phrases, and various social engineering security practices stand to benefit in the long run.
If you have yet to do so already, now is a time to take some profits off the table and purchase yourself a hardware wallet. Trezor and Ledger are just a few of the options I recommend you research further on your own.
“There are only two types of companies: those that have been hacked and those that will be.” — FBI Director Robert Mueller (2012)
DISCLAIMER : This content is for informational, educational and research purposes only. This post is not to be taken as personalized investment advice.