Despite the connections to the recent WannaCry ransomware attack, bitcoin has surged to over $2500. This rise occurred after an announcement from the Digital Currency Group last week encouraging investors to invest in the future the bitcoin. The Digital Currency Group’s bitcoin scaling agreement is a significant step forward for the fintech industry and blockchain technology being used within the finance space.
While bitcoin is a volatile asset, caution is still maintained. Brian Kelly, CEO of BKCM highlighted to CNBC that ‘this upgrade is needed because more applications can be built on top of bitcoin and more value can be added to bitcoin.’ However, as mentioned, investors are cautious but the digital currency is gaining more momentum and attention, especially in Asia where changes in policy have made it easier to trade.
May 12th marked the start of the ransomware attack on many corporations in a range of different industries, most dramatically on the UK’s health care service, the NHS. After locking more than 200,000 computers worldwide with the WannaCry virus, hackers asked businesses to pay a bitcoin ransom of $300 at first, which then started to increase. I had a discussion with an informed blockchain expert about the effect this ransomware attack would have on the fintech industry in the long term.