Page 3 - CDM Cyber Warnings November 2013

Bitcoins Blast Off – But Are They Secure?

While we prepare to turn the corner into a new year, as we wrap up 2013,
it seems that Bitcoins have finally taken hold. Over 11,000,000 have
been mined, only 24,000,000 or so will be available, total and so we
watch their market value skyrocket, nearly topping the price of Gold.

Bitcoins are the supreme example of the future of the internet and
electronic commerce – a complex mathematical formula – bits and bytes
that can be moved around through cyber space, for the exchange of both
non-physical and physical goods.

Thus, 2014 should mark a new beginning – but not only for bitcoins and their continued harvesting and
exchanges in various global currencies but also for Cyber criminals to increase their focus on this new
frontier. I expect to see more news through the holiday season of Bitcoin related hacking, attacks against
Bitcoin exchange servers, Bitcoin wallet technology and ultimately the Bitcoin digest itself. Will this lead

to chaos in this new and wild frontier? Will Bitcoin security services arrive on the scene to help shephard
in a new wave of electronic commerce security and privacy capabilities? Will the US government and their
partner the Federal Reserve look to harvest the value of Bitcoins? Or will they attempt to regulate them
out of existence?

Throughout all the hype and excitement, as Bitcoins finally have skyrocketed over the $900.00 USD value
mark, per Bitcoin, up to more than an ounce of Gold and back down again to the $900.00 range, one can

only speculate – is this a minor bubble or market correction? Could it be possible for Bitcoins to be
valued at $1m each, as some have suggested. And what about those who purchased or harvested
Bitcoins early in the game? Are we looking at a new field of millionaire players in the electronic currency
market? How will they exit or convert so many Bitcoins into tangible assets?

These and many more questions are on my mind and that of infosec researchers who find it both
intriguing and valuable to see a new currency emerge – outside of the bounds of any one government or
centralized banking system. Bitcoins are blasting off, but are they secure? Only time will tell. For now,
stay ever so vigilant if you pursue this new avenue of e-commerce.

To our faithful readers, Enjoy,
Pierluigi Paganini

Pierluigi Paganini, Editor-in-Chief, [email protected]
P.S. Congrats Anthony Ford (USA) – this month’s contest winner!