120,000 Bitcoins stolen from Bitfinex caused the price of Bitcoin to drop by 25%. Huobi: Isolation of hot and cold wallets is the core

Today, Bitcoin is experiencing another sharp drop. According to the quote from Huobi.com, a domestic Bitcoin trading platform, after six consecutive days of decline, the Bitcoin trading price fell from a high of RMB 4,043 to a low of RMB 3,005 (as of 9:30 a.m.), with a single-day drop of more than 25% , which is the largest drop this year.

(Bitcoin data comes from Huobi.com)

Compared with the plummeting market, Bitcoin security issues are more concerning.

This morning, Bitfinex, the largest Bitcoin trading platform in USD, issued an announcement that due to a security vulnerability on the website, as many as 119,756 BTC of users were stolen, with a total value of about 75 million USD , and Bitcoin trading and withdrawal services were temporarily closed, triggering panic selling in the international and domestic markets.

As early as February 28, 2014, Mt. Gox, once the world's largest Bitcoin trader, filed for bankruptcy, claiming that it had lost at least 850,000 Bitcoins due to a hacker attack and was also in debt of $65 million.

Security issues have always been the biggest threat in the Bitcoin field.

In the past five years, 95% of Bitcoin-related startups that went bankrupt were due to Bitcoin theft. Due to the anonymity of Bitcoin, it is almost impossible to recover it after it is stolen.

It is understood that the security vulnerability of Bitfinex is still in the hot wallet . Du Jun, co-founder of Huobi, China's largest Bitcoin trading platform, said that security issues are one of the most important keys to test global Bitcoin exchanges. Huobi has adopted a user asset separation solution based on China's first multi-signature Bitcoin wallet since 2013, ensuring that 98% of users' Bitcoin is stored in multi-signature cold wallets and only 2% of Bitcoin is stored in hot wallets, which has a great balance between Bitcoin security and convenience. Since its launch, Huobi has been running smoothly for 3 years without any Bitcoin security incidents.

Previously, the 2014-2016 Global Bitcoin Development Report jointly released by Tsinghua University PBC School of Finance, Huobi.com and Sina Technology pointed out that Bitcoin's price fluctuations, security, and criminal uses are common controversies in the development of Bitcoin. Bitcoin's inherent scarcity and borderlessness make it a natural investment product.