The Four Horsemen of Cryptocurrencies: Volatility, criminal activity, security issues, and human error

 

Welcome to the second article in our series of blogs about blockchain technology and its impact on business practices, corporate governance and cybersecurity.

 

 

In Robert Braun’s article, Cryptocurrencies – Does the Next Big Thing have Staying Power?, published by FinTech Weekly, he describes four challenges that arise in the use of cryptocurrencies, and potentially in other blockchain applications: volatility, criminal activity, security issues, and human error.  He writes:

“Cryptocurrencies – not just bitcoin, but any of the hundreds of different currencies that have been created using blockchain technology – have caught the imagination of the public.  There are, seemingly, daily articles that predict either the demise of all traditional currencies in favor of cryptocurrencies, and just as many articles predicting the demise of cryptocurrencies.  While cryptocurrencies are just one of the many uses of blockchain technology, the challenges cryptocurrencies face may reflect hurdles for other uses of bitcoin. With that in mind, four challenges arise in the use of cryptocurrencies, and potentially in other blockchain applications.”

To read the full article, see Cryptocurrencies – Does the Next Big Thing have Staying Power?

To read the first blog in this series on blockchain technology, see So, What is This Blockchain Thing?

 

Robert E. Braun is the co-chair of the Cybersecurity and Privacy Law Group at Jeffer Mangels Butler & Mitchell LLP. Bob helps clients to develop and implement privacy and information security policies, negotiate agreements for technologies and data management services, and comply with legal and regulatory requirements. He helps clients to develop and implement data breach response plans, and he and his team respond quickly to clients’ needs when a data breach occurs. Contact Bob at RBraun@jmbm.com or +1 310.785.5331.

JMBM’s Cybersecurity and Privacy Group counsels clients in a wide variety of industries, including accounting firms, law firms, business management firms and family offices, in matters ranging from development of cybersecurity strategies, creation of data security and privacy policies, responding to data breaches and regulatory inquiries and investigations, and crisis management. The Cybersecurity and Privacy Group uses a focused intake methodology that permits clients to get a reliable sense of their cybersecurity readiness and to determine optimal, client-specific approaches to cybersecurity.