Q & A

Q: Can companies or governments use block chain technology, but without a legitimate cryptocurrency?

A: No. By definition, block chain technology digitizes assets, which means that at some point, payment must occur in an encrypted digital currency with the properties we’ve outlined in What is Cryptocurrency?, i.e., a legitimate cryptocurrency.

Q: Can governments make a digital currency, but control its supply and monitor its use?

A: Yes, but a digital currency controlled by an entity (as opposed to by an open source software design) would not be authentic cryptocurrency.

Q: Can cryptocurrency be hacked?

A: Hacking cryptocurrency is difficult, arguably more than hacking electronic financial systems. Former Federal Reserve Chief Ben Bernanke stated that “a blockchain-style system might have averted last year’s debacle in which hackers exploited the SWIFT money transfer system to rob over $80 million from the Central Bank of Bangladesh.”17 That said, it is possible for a holder of cryptocurrency to be hacked, which s why we provide specially encrypted storage for our clients. [need text here about hacking holdings v. hacking the actual code….etc] Further, theoretically a cryptocurrency’s code itself could be compromised. Though that hasn’t happened yet to our knowledge, here’s how it could happen…etc.: