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Bitcoin & Mt. Gox

2014-03-04 02:17:09.854771+00 by Dan Lyke 14 comments

"What Nigerian scams are to your grandfather, Bitcoin exchanges are to the 20-30 semi-tech-savvy libertarian demographic." What Did Not Happen At Mt. Gox

(Freudian typo of the moment: Yes, I had to backspace and re-type "Bitcon")

[ related topics: Politics Libertarian Marketing ]

comments in ascending chronological order (reverse):

#Comment Re: made: 2014-03-04 17:04:49.270619+00 by: Dan Lyke

Looks like bitcoin exchanges crying theft and shutting down is the new black. Flexcoin shuts down.

On March 2nd 2014 Flexcoin was attacked and robbed of all coins in the hot wallet. The attacker made off with 896 BTC, dividing them into these two addresses:



As Flexcoin does not have the resources, assets, or otherwise to come back from this loss, we are closing our doors immediately.

#Comment Re: made: 2014-03-04 18:03:46.096901+00 by: meuon

Maybe it's time for a slighty more regulated less anonymous cryptocurrency. I like the ideas behind it, but haven't needed any yet and I don't trust the major payers.

#Comment Re: made: 2014-03-04 22:16:18.60785+00 by: meuon [edit history]

I'm wondering if the big governments aren't behind the Bitcon related heists just to discredit them... and to be seen as saviors when they regulate (tax) them.

#Comment Re: made: 2014-03-04 23:44:40.439248+00 by: Larry Burton

Meuon, I'm not convinced big governments weren't behind the creation of Bitcoin in the first place.

#Comment Re: made: 2014-03-05 06:52:12.238464+00 by: crasch

Traditional banks are regularly robbed. Traditional currencies are regularly devalued (all fiat currencies) or collapse (Argentine peso, Zimbabwean dollar). The users of traditional currencies regularly fall victim to scams (Madoff ponzi scheme, Fannie Mae/Freddie Mac, Social Security). This despite centuries of time to get the security right.

However, they are still useful and valuable. As is Bitcoin, despite the growing pains.

When most of these exchanges were created, Bitcoin was trading at a few dollars/BTC. Many of the proprietors did not have the expertise to create or maintain proper security when BTC exploded to hundreds of dollars/BTC. Those exchanges are now being weeded out. Most consumers also did not have experience with "irreversible" transactions, sheltered as they are by banks and credit card companies.

Newer exchanges have better security, and are implementing multisignature transactions which will help reduce the risk that someone will lose/abscond with the funds:


#Comment Re: made: 2014-03-05 15:19:44.796346+00 by: Dan Lyke

I think the concept of bitcoin is interesting, but bitcoin right now is not a currency, it's a speculative instrument. When it becomes a currency it'll be super useful, but I don't know yet if that'll happen with bitcoin, or dogecoin, or Americancoin, and I also suspect that'll only really happen when there's an FDIC for it, and an SEC or similar oversight organization.

#Comment Re: made: 2014-03-05 15:43:04.15474+00 by: meuon

http://www.telegraph.co.uk/tec...lionaire-creator-of-Bitcoin.html is a fun read on the speculation of the source of bitcoins.

#Comment Re: made: 2014-03-05 20:49:49.697332+00 by: Dan Lyke

Brad Templeton puts together the pros and cons of a "tainted coin" database in one place. I've seen such a suggestion before, it's not a new idea, but the notion is one that might be useful if explored.

#Comment Re: made: 2014-03-06 20:42:38.000021+00 by: Dan Lyke

Two bitcoin news of the day bits:

#Comment Re: made: 2014-03-06 21:37:45.153267+00 by: Jack William Bell [edit history]

I'm betting that Radtke's death will be ruled 'suicide'. As in 'strangled self with bare hands'.

Expect more.

Why? Ask yourself what kind of person is going to use Bitcoin to move significant amounts of money around, as opposed to buying some weed on Silk Road or playing with 'Libertarian Currency'. Then ask yourself how that kind of person deals with someone mishandling millions of their dollars. (In 'real' money.)

Then ask yourself what is wrong with Bitcoin exchanges. Is it their security? Well, true for Mt. Gox, but not for all. No, it is the fact they are prime targets for other bad actors, where one success can lead to millions in a single operation. So, no matter how good the lock is, someone will come along to pick it.

Crypto-currency exchanges are a broken model on the Internet.


#Comment Re: made: 2014-03-07 14:53:15.607255+00 by: Dan Lyke

And the forum account by which all previous conversation with "Satoshi Nakamoto" has occurred says that Newsweek fingered the wrong guy.

The Flexcoin bank has shut down after having 896 bitcoins stolen.

#Comment Re: made: 2014-03-17 17:49:20.822405+00 by: Dan Lyke

Reuters' Felix Salmon posts what he says is a denial from Dorian Nakamoto.

#Comment Re: made: 2014-03-18 22:48:56.763144+00 by: Dan Lyke

Ottawa bitcoin exchange defrauded of $100,000 in easiest heist ever

#Comment Re: made: 2014-03-21 15:52:05.189699+00 by: Dan Lyke

/. brings us the news that Mt.Gox found 200k bitcoins in an old wallet...

At the time of its closure, Mt.Gox said that it was unable to locate 850,000 bitcoins, the vast majority of which belonged to customers. The discovery reduces the number of lost bitcoins to 650,000, but also raises questions about what really happened to the missing currency.

Turns out they were hiding in the sofa cushions after all...