Bitcoins were hacked yesterday? | TigerDroppings.com

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Lsut81
USA Fan
Member since Jun 2005
64851 posts

Bitcoins were hacked yesterday?



I thought this wasn't possible

quote:

Online currency bitcoin had 20 percent knocked off its price overnight on Thursday as one of its major exchanges became the victim of a hacking attack leading to a sell-off in the virtual currency after reaching an all-time high.

Uncertainty over other currencies, turmoil in Cyprus and media interest are just some of the reasons commentators are citing for the 360 percent rise in bitcoin prices over the last month. The frenzied interest in bitcoins piled over onto the social media site Twitter and led to a spike in Google searches on the topic.

But by Thursday morning bitcoin prices had fallen to $132 from Wednesday's record price of $147.

The most popular bitcoin exchange, Tokyo-based Mt.Gox announced overnight that it had been the victim of a hacking attack after experiencing a severe lag with its systems. The complications meant the price quickly sank to below $115 before regaining ground to $130 by 6.00 a.m. London time on Thursday, according to Bitcoincharts.com.


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Broke
LSU Fan
AKA Buttercup
Member since Sep 2006
56471 posts

re: Bitcoins were hacked yesterday?


quote:

I thought this wasn't possible


NOW you have to do transactions peer to peer. That's what you'll hear from the proponents.






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TheOcean
Florida State Fan
Member since Aug 2004
30543 posts

re: Bitcoins were hacked yesterday?


Extremely possible. As i've said before, I know of one guy who had 50k+ worth of bitcoins hacked a while back.





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Fat Bastard
New Orleans Saints Fan
Paradise
Member since Mar 2009
16028 posts

re: Bitcoins were hacked yesterday?








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Lsut81
USA Fan
Member since Jun 2005
64851 posts

re: Bitcoins were hacked yesterday?


quote:

NOW you have to do transactions peer to peer.


Oh ok...


So if you have to do it that way, wont it take the anonymity out of it?






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Korkstand
LSU Fan
Plaquemine, LA
Member since Nov 2003
9778 posts

re: Bitcoins were hacked yesterday?


quote:

Bitcoins were hacked yesterday?

No, it was a DDoS.
quote:

I thought this wasn't possible

DDoS' happen every day to many websites, and it is simply an attacker using a botnet to overload a website. Usually the goal is to cost the victim money due to website down time (in effect holding it hostage), but in this case the goal was to create a panic sell-off.






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Lsut81
USA Fan
Member since Jun 2005
64851 posts

re: Bitcoins were hacked yesterday?


quote:

it is simply an attacker using a botnet to overload a website


Great, so everyones fake money is still good?






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Broke
LSU Fan
AKA Buttercup
Member since Sep 2006
56471 posts

re: Bitcoins were hacked yesterday?


quote:

Great, so everyones fake money is still good?


That's what it sounds like. I'm so relieved.






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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
81782 posts

re: Bitcoins were hacked yesterday?


quote:

Great, so everyones fake money is still good?

Everyone except for the customers of Instawallet who lost an estimated $4.3 million of their money yesterday when Instawallet was hacked and the hackers made off with their bitcoins.

Instawallet has shut down for 90 days (or, "indefinitely" depending on the story) while it sorts out whose bitcoins got compromised and whose money is safe. LINK

So even if a customer's money is still there, their account is frozen for 90 days and their money is unavailable to them.






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Broke
LSU Fan
AKA Buttercup
Member since Sep 2006
56471 posts

re: Bitcoins were hacked yesterday?


quote:

Everyone except for the customers of Instawallet who lost an estimated $4.3 million of their money yesterday when Instawallet was hacked and the hackers made off with their bitcoins.


I have a sneaky suspicion that this was an inside job and some money will be returned to save face. And he'll get away with it since "Hey, it's all anonymous"

But you know what? If the president of my bank runs off with all of my money, I'll be made whole.



This post was edited on 4/4 at 11:57 am


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Lsut81
USA Fan
Member since Jun 2005
64851 posts

re: Bitcoins were hacked yesterday?


quote:

their account is frozen for 90 days and their money is unavailable to them.


So basically, no better off than the people in Cyprus?






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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
81782 posts

re: Bitcoins were hacked yesterday?


quote:

So basically, no better off than the people in Cyprus?

Pretty much.....






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Broke
LSU Fan
AKA Buttercup
Member since Sep 2006
56471 posts

re: Bitcoins were hacked yesterday?


I asked this on the poli board but I'll put it here too:

I got a question I've been wanting to ask you. If you were able to short, where would you cover the position?

I'm thinking 30









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Korkstand
LSU Fan
Plaquemine, LA
Member since Nov 2003
9778 posts

re: Bitcoins were hacked yesterday?


quote:

Great, so everyones fake money is still good?

I think so, it's just worth a little less.

As for calling it "fake money"... isn't the vast majority of our money just numbers on a computer somewhere? The only difference is a government says one is valid, and a completely open and transparent program says the other is valid.

Isn't money "real" as long as someone, somewhere is using it in exchange for something else?






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Lsut81
USA Fan
Member since Jun 2005
64851 posts

re: Bitcoins were hacked yesterday?


quote:

isn't the vast majority of our money just numbers on a computer somewhere? The only difference is a government says one is valid, and a completely open and transparent program says the other is valid.


No, dollars are back by the full faith of the United States, which owns assets to back up those dollars...






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AUtigerNOLA
Auburn Fan
New Orleans, LA
Member since Apr 2011
10172 posts

re: Bitcoins were hacked yesterday?


Are they coming out with Bitcoins ATM?





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Broke
LSU Fan
AKA Buttercup
Member since Sep 2006
56471 posts

re: Bitcoins were hacked yesterday?


quote:

Are they coming out with Bitcoins ATM?


Why? What will it give you? A printout of a piece of paper with an encrypted code, that the lady at Wal-Mart will subsequently rip up when you try to pay for your Twinkies and pot pies.






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Lsut81
USA Fan
Member since Jun 2005
64851 posts

re: Bitcoins were hacked yesterday?


quote:

Are they coming out with Bitcoins ATM?


Yeah, apparently some company is setting one up in Cyprus.


Expect the company that sets it up to be taxed heavily.






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AUtigerNOLA
Auburn Fan
New Orleans, LA
Member since Apr 2011
10172 posts

re: Bitcoins were hacked yesterday?


I have no idea they just put an article on CNN about it. I was under the assumption that bitcoins were numbers on a computer screen.





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Korkstand
LSU Fan
Plaquemine, LA
Member since Nov 2003
9778 posts

re: Bitcoins were hacked yesterday?


quote:

No, dollars are back by the full faith of the United States, which owns assets to back up those dollars...

Some trust the government and some don't, but the US doesn't back up dollars with assets. Dollars are only backed up by the word of the government... that's what fiat means. Dollars are really backed up by faith in the economy, and bitcoins are very much the same. Main difference being there isn't nearly as much faith in the bitcoin economy.






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