The crypto market has been on a wild ride over the past few years, with prices soaring to all-time highs in 2017 and then crashing just as dramatically in 2018. And while the market has been relatively stable in recent months, many experts predict another crash in 2023.
But what does this mean for cyber security?
In this article, we’ll explore the potential effects of the crypto crash on cybersecurity and how industry experts see this event impacting security protocols going forward.
Background on the Crypto Crash
The Crypto Crash refers to the period in the cryptocurrency markets from late 2017 to early 2019 when prices rapidly dropped significantly. This crash was marked by a peak in December 2017, when many cryptocurrencies experienced their all-time highs. From this peak, prices started to decline sharply and continued to do so for over a year.
During this time, many cryptocurrencies saw their market caps drop by as much as 90%. The Crypto Crash is considered one of the most significant events in the cryptocurrency markets, and many investors still feel the aftermath today.
The Crypto Crash began in late 2017 when prices for Bitcoin skyrocketed from around $7000 to nearly $20,000 in December. This rapid growth resulted in an influx of new investors and speculators, driving prices even higher.
But much to the dismay of crypto investors, this bubble eventually burst. Prices declined in January 2018 and continued to do so for over a year.
Many factors likely contributed to this crash, including market manipulation by whales, profit-taking by investors, fear of regulation, and the overall market trend of investors moving away from risky investments.
In the aftermath of this crash, many investors were left with significant losses, and the markets took a long time to recover. It wasn’t until April 2019 that Bitcoin prices finally began to stabilize and eventually exceed their pre-crash prices in late 2020.
Though these events are now in the past, many investors still remember and are more cautious when investing in cryptocurrencies. The Crypto Crash is a reminder that even seemingly sure investments can be volatile, and it’s important to be aware of the risks involved when investing in any asset.
The Relationship Between Crypto and Cyber Security
The Crypto Crash, which sent Bitcoin prices plummeting, is a reminder of the unique and sometimes unpredictable relationship between cryptocurrency and cyber security. In the past, when the crypto market experienced significant drops or gains, it also impacted cyber security.
Such changes can lead to increased vulnerability because they often create more opportunities for malicious actors to exploit.
For example, when Bitcoin’s price dropped in 2018, some cryptocurrency owners resorted to desperate measures such as selling off their tokens online at discounted prices. This created a massive surge in the number of transactions, leaving users vulnerable to cyber attacks as hackers took advantage of the uptick in activity.
Similarly, when the price of Ethereum skyrocketed in 2017, some investors were so eager to get a piece of the action that they fell victim to phishing scams and other fraudulent activities.
The Crypto Crash is an important reminder of how quickly cyber security can be affected by fluctuations in the cryptocurrency market. As more investors become involved with cryptocurrencies, it’s essential to stay vigilant and ensure adequate security measures are in place to protect assets and users.
By paying close attention to the crypto markets, understanding the risks associated with them, and taking proactive steps to safeguard against cyber threats, investors can help minimize their risk exposure. With this knowledge in mind, crypto investors can ride out the highs and lows of the market while staying safe.
Potential Impacts of the Crypto Crash on Cyber Security
With the value of cryptocurrencies fluctuating wildly and investors potentially panicking, the risk of cyber attacks and scams increases. Below are some of the ways a crypto crash might affect cyber security.
Decreased investment in cyber security measures
As many organizations feel the financial pinch of the crypto crisis, they may opt to cut back on their budget for security solutions and services. This can leave organizations open to cyber attacks, as they may not have the necessary measures to protect their systems and data.
A downtrend in hiring and retaining cyber security professionals
As organizations experience financial difficulty due to the crash, they may be less likely to invest in long-term personnel costs, such as hiring new cyber security staff or retaining existing employees.
This may lead to an overall decrease in the number of qualified professionals available, which can significantly impact the availability of cyber security solutions.
Hampered research and development
Many organizations are scaling back their R&D budgets due to the crisis, leading to decreased funding for bug fixes and security feature updates. This can leave systems vulnerable to exploits and other threats, as they may not have the latest security patches or features.
These factors could all contribute to an overall decrease in the security and safety of organizations’ systems and data, leaving them open to cyber attacks. As we deal with the after-effects of this event, your organization must take proactive steps to protect your systems and data to mitigate the impacts of the Crypto Crash.
The potential strength of the impact of the Crypto Crash on cyber security in 2023 is yet to be seen. However, to ensure that your networks are protected from cyber threats, you should stay up to date with the latest security trends in the sector and take proactive measures, starting with regular phishing simulations to protect your systems.
It might sound simple, but doing so will help you and your users remain one step ahead of cyber criminals.
Find out if your employees can identify phishing attacks and prevent your organization from falling victim by performing a free phishing simulation.