Hack fears push bitcoin investors back to the future

Being a crypto investor is not easy and one of the difficulties of being a crypto investor is hack concerns. They have seen the value of their holdings drop like a brick this year, and now many are worried about the security of their cryptocurrencies following a series of heists in which nearly $2 billion was stolen by hackers.

Hardware wallets - old-school physical devices similar to USB sticks that store crypto assets offline - may seem like a throwback to a more innocent digital age, but they are proving to be a popular response to a cutting-edge conundrum. According to market research firm Straits Research, the global hardware wallet market is expected to grow from $245 million in 2021 to over $1.7 billion by 2030. It is fueled by a steady stream of cyber heists, with thieves stealing $1.9 billion in crypto in the first seven months of the year, a 60% increase from a year ago, according to researcher Chainalysis. Much of this was stolen directly from blockchains or "hot" online wallets. It's not just the hacks that have investors on edge. When major lenders like Celsius Network and Voyager Digital went down in July, others lost access to their crypto. "We've definitely seen increased interest in hardware wallets and self-protection in general after a few issues," said Adam Lowe, director of product and innovation at US-based CompoSecure, one of several hardware wallet makers looking to capitalize on the security rush. "On the day or the day after these events, we will see very significant (sales) spikes." Still, there's no such thing as a free crypto lunch: While hot wallets are convenient and allow for fast trading, hardware wallets don't appeal to first-time investors, who typically buy cryptocurrencies from major exchanges and may prefer to keep their holdings on those platforms, where they can log in with just a username and password. Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!