So that's a yes?
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Bitcoins
- Thread starter Herr Tubthumper
- Start date
So that's a yes?
Uncle C
Well-known member
All they really lost was their initial investment. The rest was smoke and mirrors.
Seagull58
In the Algarve
Agree about the establishment getting rattled. As for the future of Bitcoin I do not have a clue. I made my purchase for a variety of reasons, the main ones being that I'm intrigued and interested and I also want to support it and I want it to succeed.
That said, I really do think the time is right for a genuine alternative system. I remember years ago people laughed at the idea of peer-2-peer currency exchanges and predicted little future for something existing outside of the regular banking norms. Peer-2-peer is now fairly established with better rates than you get through banks and/or Forex and I predict it will grow even further (as an aside I have a personal bug-bear with agents of any type getting in-between a transaction of any kind) Bitcoin I see as the next logical step. It's a bit of a gamble but we'll see.
I now need to figure out a way of spending the things.
I exchange rands and dollars at a Nigerian shoe shop in the local chinese market. I get a very good rate.
- Thread starter
- #204
has anyone found my wallet yet?
Seen it, pinched it, spent it.
Oh that's alright them. I am sure they will be very comforted by that thought.
The Maharajah of Sydney
Well-known member
Another one bites the dust ...
Bitcoin bank closes down after $600,000 hacker theft.
http://www.bbc.com/news/business-26446142
Flexcoin, the Canada-based Bitcoin bank, is to close after losing $600,000 in a hacker attack.
Its entire stock of Bitcoins stored on-line, in its so-called "hot wallet", were stolen.
Coins held in "cold storage" or in servers not connected to the internet were not taken.
Last week, the world's biggest Bitcoin exchange, Mt Gox, filed for bankruptcy protection after it suffered a $500m theft.
Bitcoin is a digital or crypto-currency which is bought and sold online, but not backed by any country's central bank or government.
As Flexcoin does not have the resources, assets, or otherwise to come back from this loss, we are closing our doors immediately”
Flexcoin called itself the first Bitcoin bank. It provided centralised storage and enabled instant free transfers between Flexcoin customers.
It said in a statement: "On 2 March 2014, Flexcoin was attacked and robbed of all coins in the hot wallet. The attacker made off with 896 [Bitcoins].
"As Flexcoin does not have the resources, assets, or otherwise to come back from this loss, we are closing our doors immediately.
"Users who put their coins into cold storage will be contacted by Flexcoin and asked to verify their identity. Once identified, cold storage coins will be transferred out free of charge."
Flexcoin and Mt Gox are not the only casualties in Bitcoin's battle with security. On Tuesday, Poloniex, another exchange, also admitted that 12.3% of its reserves had been stolen by hackers.
The Slovenia-based Bitstamp had to halt business temporarily after a cyber-attack in February.
Hacked
The payment processor Inputs.io was hacked in October to the tune of $1m.
The Bitcoin market has shrugged off the latest thefts. Since the beginning of March, the value of a Bitcoin has risen from $561 to $668.
There are plans by several governments to regulate Bitcoins. A Japanese government spokesman said talks on Bitcoin guidelines were in progress.
The Nikkei Business Daily reported on Wednesday that the government would tax Bitcoin transactions and ban banks and securities firms from handling the digital currency.
US Federal Reserve Chair Janet Yellen said last week the US Congress should look into legal options for regulating virtual currencies such as Bitcoin.
But in the UK, tax authorities published a briefing on the taxing of Bitcoins, dropping plans to charge value added tax (VAT), or sales tax, on Bitcoin trading.
Bitcoin bank closes down after $600,000 hacker theft.
http://www.bbc.com/news/business-26446142
Flexcoin, the Canada-based Bitcoin bank, is to close after losing $600,000 in a hacker attack.
Its entire stock of Bitcoins stored on-line, in its so-called "hot wallet", were stolen.
Coins held in "cold storage" or in servers not connected to the internet were not taken.
Last week, the world's biggest Bitcoin exchange, Mt Gox, filed for bankruptcy protection after it suffered a $500m theft.
Bitcoin is a digital or crypto-currency which is bought and sold online, but not backed by any country's central bank or government.
As Flexcoin does not have the resources, assets, or otherwise to come back from this loss, we are closing our doors immediately”
Flexcoin called itself the first Bitcoin bank. It provided centralised storage and enabled instant free transfers between Flexcoin customers.
It said in a statement: "On 2 March 2014, Flexcoin was attacked and robbed of all coins in the hot wallet. The attacker made off with 896 [Bitcoins].
"As Flexcoin does not have the resources, assets, or otherwise to come back from this loss, we are closing our doors immediately.
"Users who put their coins into cold storage will be contacted by Flexcoin and asked to verify their identity. Once identified, cold storage coins will be transferred out free of charge."
Flexcoin and Mt Gox are not the only casualties in Bitcoin's battle with security. On Tuesday, Poloniex, another exchange, also admitted that 12.3% of its reserves had been stolen by hackers.
The Slovenia-based Bitstamp had to halt business temporarily after a cyber-attack in February.
Hacked
The payment processor Inputs.io was hacked in October to the tune of $1m.
The Bitcoin market has shrugged off the latest thefts. Since the beginning of March, the value of a Bitcoin has risen from $561 to $668.
There are plans by several governments to regulate Bitcoins. A Japanese government spokesman said talks on Bitcoin guidelines were in progress.
The Nikkei Business Daily reported on Wednesday that the government would tax Bitcoin transactions and ban banks and securities firms from handling the digital currency.
US Federal Reserve Chair Janet Yellen said last week the US Congress should look into legal options for regulating virtual currencies such as Bitcoin.
But in the UK, tax authorities published a briefing on the taxing of Bitcoins, dropping plans to charge value added tax (VAT), or sales tax, on Bitcoin trading.
Can someone more experienced in Bitcoins explain this to me? Why do people not store them on their computers or USB's? Why are they trusting unregulated 3rd parties? Am I missing something, but I have used LocalBitCoins in the past, but transferred to my PC, and then dipped in and out where ever I am purchasing from, but never keeping any significant (Like more than £10) anywhere that isn't my PC.
Monsieur Le Plonk
Lethargy in motion
AZ Gull
@SeagullsAcademy @seagullsacademy.bsky.social
Even keeping them on your PC isn't necessarily safe. Nearly 3 years ago, someone had about $500,000 stolen from their PC - World's First Virtual Heist? BitCoin User Loses $500,000
And just the other day, there were reports of cyber-criminals using a virus to steal digital currencies (including bitcoins) and other details from users, with the PCs of up to 200,000 people being infected - Bitcoins, other digital currencies stolen in massive 'Pony' botnet attack
This user has gone to the lengths of storing some of his bitcoins using a private key that is inscribed on a ring hat he wears on his finger - Ring of Bitcoins: Why Your Digital Wallet Belongs On Your Finger
Speaking from my own personal point of view. I would be concerned that should my computer break (fairly likely) I would lose them all. Having said that, I realise they can be backed up but I don't fully understand the process. You can also earn interest on some sites such as Vircurex.
I use Armour though, that gives you a file, which I back up regularly, on a USB key, CD, and my storage box. So I'd need to lose all of those, my PC break, or forget my recovery password for this to be an issue. Seems unlikely
I am aware of some risks, but they are no different to say, someone stealing my bank details or similar, or viruses in general. Basic PC security, and good backup practice, is better than unregulated businesses storing my finances.
AZ Gull
@SeagullsAcademy @seagullsacademy.bsky.social
Except that if something does happen to your bitcoins, you have no recourse to anyone; they are gone for good (just like finding that cash has "disappeared" from your physical wallet). With other types of "identity theft", or if a business you bank/trade with suffers a hacking attack, there will probably be some degree of compensation/restitution.
- Thread starter
- #217
Us Bitcoiners do understand there are some risks.
Beach Hut
Brighton Bhuna Boy
So have you lost a packet you could have safely stashed under your bed ?
AZ Gull
@SeagullsAcademy @seagullsacademy.bsky.social
By all means tell me to piss off (as it is none of my business), but having followed your journey into the clandestine world of crypto-currencies, did you lose ALL of the bitcoins you purchased? If so, will you be buying any more?
You also mentioned you might try to spend some at that pub in Brighton (The Blind Tiger). Do you know how you actually carry out a transaction at such an establishment? Do you have to set up some sort of account with them in advance, and authorise a transfer when you are stood at the bar? I'm curious how this would work in practice at a "physical" business.
- Thread starter
- #220
I'm happy to share my experience so I won't be telling you to mind your own
I had my Bitcoins in MtGox so I'm guessing they're all lost. This is what I'm assuming anyway. And yes in principle I'll buy some more but I'll need to do some more home work first. I knew there was a risk I could lose my money but I thought this would be more likely due to the currency collapsing than someone virtually raiding the bank. As for spending them this was to be my next step. As I understand it I would use an App on my phone to transfer the money to an App the vendor eg Blind Tiger would have and it would be similar to making a bank transfer, or any other purchase, on your phone; I don't believe any prior account with the vendor or engagement is required. I stand there at the bar; send cash; it registers on pub App; I drink my beer. This is the theory as I understand it.
I'm still keen so once the dust has settled I will have another go.