Is ransomware driving up the price of Bitcoin?

[harlan4096]

Cybercriminals may be partially responsible for driving up the price of Bitcoin.

It’s no secret that Bitcoin and other cryptocurrencies have had an enabling effect on cybercrime. Now, we believe the inverse may also be true – that cybercrime, and ransomware in particular, is helping stimulate the cryptocurrency economy and inflating the value of Bitcoin.
Bitcoin: a key part of the ransomware model

Bitcoin has proven to be a tempestuous creature, climbing to an all-time high value of almost $20,000 in December 2017, dropping to below $3,500 in January 2019 and bouncing back to around the $10,000 mark today.

While there are many factors behind these extreme fluctuations, we believe ransomware may be fueling the growth of Bitcoin.

Ransomware is a type of malware that encrypts a victim’s files. To regain access to the files, the victim has to pay a ransom, the cost of which can range from a few hundred dollars for home users, to hundreds of thousands of dollars for major corporations and public entities.

The ransom is usually paid in cryptocurrency, and that cryptocurrency is usually Bitcoin. Bitcoin accounted for about 98 percent of ransomware payments made in the first quarter of 2019, according to figures from ransomware recovery specialists Coveware. As a result, Bitcoin has become an inextricable part of the ransomware model.

There are a few reasons why Bitcoin has become the de facto currency of ransomware:

1.- Accessibility: Bitcoin can be easily purchased via an exchange using a credit card, debit card or bank transfer. Accessibility and ease of use make it more likely for victims to pay the ransom.

2.- Verifiable: Bitcoin transactions are publicly documented in the blockchain, which allows cybercriminals to verify that a payment has been made.

3.- Anonymity: Bitcoin isn’t the most private cryptocurrency, but mixer and tumbler services allow criminals to essentially launder ransom payments and keep their identities hidden.

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