Too easy for Cryptocurrency: an outsider’s notion

For any and all reasons that governments may employ to bar cryptocurrency from their homeland, the technology is way too alluring and way too outreaching that it might not stop unless every fiscal enthusiast has a crypto wallet account at some point. In the previous series of blogs by Wit Write Creative Solutions, we tried to inform the deserving businesses about equipment and technical compliances necessary for running safe Technical Business Services of Cryptocurrency.

Despite the fake outcry of why Cryptocurrency is bad for both economic and social concerns (which is kind of amusing if not appalling sometimes); there are some actual threats that Cryptocurrencies pose or face, maybe today; maybe tomorrow.

Bitcoin the envy of Technical Laggards

Today we discuss those threats; how it’s too easy for informed cryptocurrency platforms and the whole generation of enthusiastic users to blow the competition out of the water.

Strategic Analysis Shared Ledger Cryptocurrency:-

  • Quantum Computing


The Cowboy vs. Indians scenario of CryptoCurrencies

The sheer strength of Cryptocurrency system comes from the limitations of Cryptographic hackers and dark web programs to muster enough single system strength for breaking down the cryptic-military grade keys.


In coming time with cryogenic engines in place and optical fiber superconductors becoming a commonplace technology, amassing a brute force to break through such systems would become easy and thus the whole system could crumble down.

Cryptocurrency process is the addition of hash codes to transactions assisted by private keys and then pilling them in the distributed ledger of public keys. This makes it virtually impossible for a system to track the private key of a transaction to its public key and thus the hype of cryptocurrencies’ security.

Quantum connection: handshake between Public and Private

With Quantum computing the user would have an option to link private and public keys for more dynamism in transactions baring the limitations of technology for receivers. Which means users can make transactions to systems which are not that technologically advanced to receive cryptic transactions.

Now, this could eliminate cryptocurrency business altogether. Every mainframe would virtually be a Mining point thereby shutting down shops for miners.


Two Step verifications and Quantum masking of private keys from public keys. Before adding any hash codes – post private transactions, the user should be made to go through a two-step verification process wherein the public key remains hidden from both parties until the currencies are moved to a safe third-party quantum ready address.

Without an official permission from the user, the quantum hacker would not be able to link a public key to a private key and brute force attack will also lose significance in the wake of distributed efforts of fetching confirmations from virtually every user that shares the same ledger.

Source: Blockchain technology, Beyond Bitcoin, Sutardja Center for Entrepreneurship & Technology, Berkeley Engineering, University of Berkley

  • DDoS (Distributed Denial of Service) attacks on ICOs (Initial Coin Offerings)


Smoke Screen-Backdoor fuss with ICOs

Distributed Denial of Service attacks on ICOs is a big thread these days. E&Y reported via its report ‘Risks in ICO Management, Feb 2018’, almost 10% of ICOs in the last 5 years (which is almost 60-70% of the ICOs in USA Market) suffered a loss of currencies worth $3.7 Billion (accounted) owing to the DDoS attacks.

SLA inquiries and ICO application like any market IPO run by malware-infected systems knocking at the backdoors of Cryptosystems make this happen. The resources of any average ICO mining installation and cryptocurrency servers fail to accommodate such extra volume of humongous attacks acting as a smokescreen while hackers execute site admin -breaches and mass mail linking to associate private account attacks.


Installation of WAFs (Web Application Firewalls), these filter the legitimate queries from the illegitimate infected ones by tracking IPs and malware protection. Generation of security rules in real time and verification of malicious payloads by dynamic rules created to counter an attack like this.

Let’s steal from burglars

Anti-DDoS services, Hosting Security and improvisation of scalability. Meaning, making systems that check the volume before it finds a back entry and providing more options to users thereby inviting more participants.

This helps in reducing the interest of hackers because of the lesser volume of stealable currency and by providing the systems easy differentiation schemes for identifying the difference between attackers and applicants.


  • Economic Implications: Regulatory Exercise


SEBI (India), SEC (USA), CSRC (China), ASIC (Australia) have all quoted repeatedly that DLT (Distributed Ledger Technologies), basically Cryptocurrencies are a regulatory hazard, because the ambit of jurisdiction of any one regulatory body never fits enough to implicate a mishap or push forward a reform (regional or universal).

Each ledger is distributed and thus falls out of reach and jurisdiction for any regulatory authority. This can lead to malpractices, simple economic concepts of currency values based inflation; come into play.

The exploitation of dissonance between various crypto coins

Value pumping into the currencies at such levels can be from any source. Sovereign currencies are nothing to be worried about because the countries that allow Cryptocurrency only do so after taking the requisite steps to track these. But the Non-Sovereign private currencies fuelling the values of forex in such transactions cannot be traced.

They might as well contain uninsured liabilities of organizations which may hamper valuations terribly without anyone knowing. Inflation values of any cryptocurrency cannot be accounted in such cases and incidences of mass embezzlement become easier this way. Economic implications on security and debt markets also mount in massive amounts similarly.


Creating and pushing for international reforms for regulations like SDR (Special Drawing Rights) by IMF, specialized for Cryptocurrencies. Evaluating and setting up formats for assessing various Cryptocurrencies based on their trade volume and weighted exchange rates across various trade platforms on a real-time basis.

Therefore setting up a universal regulatory platform for controlling the forex valuations of various currencies compared to fiat, sovereign, and non-sovereign currencies. Cutting down the possibility of an influencer to push inflations and value mal-fluctuations through any means without being red-flagged by the SDR like arrangement.


Bitcoin, Blockchain & distributed ledgers: Caught between promise and reality | Deloitte, Centre for the Edge Australia | 2016

  • Illiquidity risks & Exchange Failures


It’s a classic example of a liquidity black hole. The large-scale hoarding of virtual currency by central users and malicious miners pose a threat on the liquidity of the users.

It takes what it can and gives nothing back…

Banks are under a speculative concern regarding Cryptocurrencies about their volatility and insecurity and thus their induction of Securities’ trade in Virtual Currency by VaR-based Capital requirements leads to decreased use of Cryptocurrency among common masses. The lesser the common acceptance of cryptocurrency, lesser the liquidity of the currency altogether.

Now based on the simple fact that the more liquid markets are expected to provide low returns and vice versa, cryptocurrency is expected to roll out very high returns, which it is providing already.

CryptoFraud: The indication of possibility but lack of any confirmation bias

But given the recent entry of Bitcoin in equity markets and debt markets which are highly liquid and lesser volatile, there arises a liquidity gap which creates space for futuristic tumbling of the whole setup. The increased pressurization which crypto markets would start realizing with these wider gaps would implicate powerful investors to hoard more and bail out at the right moment which the crash comes, leaving more liquid traders at the mercy of the market itself.


Increasing more acceptability of Cryptocurrencies in exchange markets. Cryptocurrencies could be a boon to the universal exchange market and domestic currency flows.

The governance bodies need to setup indexes to monitor Illiquidity Hikes in the Cryptocurrency performances and identify the crypto allocations of high volatile investments made by aggressive fund managers, hoarders, miners, and fraudsters.

The volume and frequencies would give such information away. Such checks and balances will help to identify the specific circumstances which have been identified as sudden phases of exponential hikes in cryptocurrency rates and thus tame the sources of illiquidity. Fixing the Cryptocurrency market would be a better solution than trying to lock it out.



Being an outsider to the daily evolving technology of Cryptocurrency, I can’t fathom the kind of awe that this industry inspires in onlookers. Cryptocurrency is surely equipped to take on what comes to its competition; it’s like the old saying…

“What don’t kill you, only makes you strong”

Please inform us of your views regarding our narrative here. If you have any alternate theories, we welcome you enlighten us. Please share and follow this tech-series of our blogs for more such insights.

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