This page has been archived and commenting is disabled.

Another Bitcoin Bank "Loses" Its Deposits

Tyler Durden's picture




 

Just six days after proudly proclaiming that it was unscathed by the Mt.Gox debacle, another Bitcoin bank - Flexcoin - has admitted that it will be forced to close after hackers stole 896 bitcoin, worth around $600,000, in an attack on Sunday. As The Guardian reports, the company shut its website and posted a statement on Tuesday morning detailing the loss..."as Flexcoin does not have the resources, assets, or otherwise to come back from this loss, we are closing our doors immediately."

 

Six days ago:

 

 

 

And today:

 

 

 

Via The Guardian,

“On March 2nd 2014 Flexcoin was attacked and robbed of all coins in the hot wallet,” the statement read. “As Flexcoin does not have the resources, assets, or otherwise to come back from this loss, we are closing our doors immediately.”

 

Not all of the company’s assets were stolen. In line with best practices for running a bitcoin financial service, Flexcoin held some bitcoins in “cold storage”, keeping them on devices not connected to the internet. Those bitcoins are safe, but only users who explicitly requested their bitcoins be held in cold storage (and paid a 0.5% fee) benefit.

 

Users who put their coins into cold storage will be contacted by Flexcoin and asked to verify their identity,” the statement continues. “Once identified, cold storage coins will be transferred out free of charge. Cold storage coins were held offline and not within reach of the attacker. Flexcoin will attempt to work with law enforcement to trace the source of the hack.”

 

...

 

Flexcoin’s closure follows that of MtGox’s, blamed on hackers stealing 750,000 bitcoins by exploiting a bug known as “transaction malleability”. Several other bitcoin businesses, both high- and low-profile, have gone under. Services including Bitcoinica, Inputs.io and MyBitcoin have all been hacked, each losing thousands of bitcoins.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 03/04/2014 - 11:25 | 4506656 camaro68ss
camaro68ss's picture

if its not in your hands, you dont own it!

Tue, 03/04/2014 - 11:26 | 4506662 prains
prains's picture

bonestar you may as well start your own and call it BENDover Coin

Tue, 03/04/2014 - 11:28 | 4506681 Chuck Norris
Chuck Norris's picture

All your bitcoin are belong to us

Tue, 03/04/2014 - 11:29 | 4506688 fonestar
fonestar's picture

That's right.  The hackers are taking out the weak stragglers from the herd.

Tue, 03/04/2014 - 11:33 | 4506719 BaBaBouy
BaBaBouy's picture

Can You Spell: "FLAWED" Coin ???

Tue, 03/04/2014 - 11:33 | 4506727 fonestar
fonestar's picture

How is it flawed you fucking moron?  What does this have to do with Bitcoin?  This is a network security issue.

Tue, 03/04/2014 - 11:40 | 4506754 nope-1004
nope-1004's picture

And therein lies the problem with fantasy money.  There are no assets in these cryptocurrencies.  Their current state is a work in progress exploring ways of transacting P2P and until all the bugs are worked out (if ever), theft, loss, and volatility are simply going to happen.

 

Tue, 03/04/2014 - 11:40 | 4506792 fonestar
fonestar's picture

"If you can't hAck your exchange you don't p0wnz them".

Tue, 03/04/2014 - 11:44 | 4506818 BTCTalks
BTCTalks's picture

If you're wondering where the coin went, ther were directed to these two addresses.  Perhaps someone with more technological know-how than I can track them down.  Not holding my breath, however.

1NDkevapt4SWYFEmquCDBSf7DLMTNVggdu

1QFcC5JitGwpFKqRDd9QNH3eGN56dCNgy6

Tue, 03/04/2014 - 11:47 | 4506836 MagicHandPuppet
MagicHandPuppet's picture

All your Bitcoin are belong to us!

EDIT: dang, someone beat me to it!

Tue, 03/04/2014 - 11:52 | 4506873 Fukushima Sam
Fukushima Sam's picture

I just checked on my PMs. Still there, no bugs to be found.

Tue, 03/04/2014 - 11:59 | 4506931 fonestar
fonestar's picture

It's pretty obvious most of you are just mad.  Think about it objectively for five minutes... what is a more likely scenario?  Kids and young people going back to the 19th century and trading gold and silver bars & coins?  Or people adopting new, faster 21st century technologies like Bitcoin?  It seems pretty obvious to fonestar.

Tue, 03/04/2014 - 12:01 | 4506949 JohnnyBriefcase
JohnnyBriefcase's picture

Actually, nobody seems mad at all.

Tue, 03/04/2014 - 12:12 | 4507022 Boris Alatovkrap
Boris Alatovkrap's picture

Boris is mad. Mad at bank for fiat currency, mad at state for spend wealth of nation as denote in fiat currency, mad at daze and confuse sheeple for put up for dirty incestuous fornication of state and bank.

Tue, 03/04/2014 - 12:21 | 4507092 Manthong
Manthong's picture

Boris..+10 256

 

Tue, 03/04/2014 - 12:29 | 4507148 StacksOnStacks
StacksOnStacks's picture

SILVER BITCHEZ!!!

Tue, 03/04/2014 - 12:40 | 4507213 fonestar
fonestar's picture

Nobody has to choose between owning silver and owning Bitcoin.  Oh, except stupid simpletons.... yes, they have to choose.

Tue, 03/04/2014 - 13:05 | 4507371 0b1knob
Tue, 03/04/2014 - 13:17 | 4507436 fonestar
fonestar's picture

Why would a .gov blogger work to undermine confidence in USD?  Face it, not only are most of you too fucking stupid to ever hope to understand Bitcoin most of you are just too stupid to live.

Tue, 03/04/2014 - 13:36 | 4507552 Toolshed
Toolshed's picture

You have tirelessly pimped bitcrap and stated repeatedly that these exchange collapses were positive for bitcrap. Seems likely that the best way to destroy bitcrap, and thus make the dollar appear stronger by comparison, would be to lure the suckers into bitcrap and then generate massive volatility and uncertainty which would result in fear and suspicion of bitcrap among the masses. Since this scenario is exactly what has happened, the insinuation seems valid. However, I am personally familiar with numerous .gov employees, and fonestar is simply much too incompetent to secure, or maintain, .gov employment.

Tue, 03/04/2014 - 13:43 | 4507604 fonestar
fonestar's picture

Ah "massive volatility" you panty-waste?  What did you expect from a hyperdeflationary currency as priced in inflationary nationalist currencies?  Seriously, grade 8 math students should be failed for not understanding such basic concepts.

Tue, 03/04/2014 - 13:57 | 4507691 Toolshed
Toolshed's picture

But I thought it was supposed to be a medium of exchange? Volatility is bad for a medium of exchange according to eighth grade math. Your sour grapes are showing looney tune.

Tue, 03/04/2014 - 14:25 | 4507889 fonestar
fonestar's picture

Lots of sellers are already pricing in Bitcoin and some people already working in fixed Bitcoin regardless of dollar value.

If you think your American "dumb guy = tough guy" shtick is going to fly in the BitWorldOrder prepare to get ass raped hard.

Wed, 03/05/2014 - 05:23 | 4510911 Squid-puppets a...
Squid-puppets a-go-go's picture

fonestar, this post is out of concern and not a personal attack.

If you are not a troll and your whole sense of identity is really as obsessively invested in bitcoin as much as it comes across in the million ZH posts you've written, then I have serious concerns for your sense of mental health as bitcoin falters. You do not have the temperence that is required of someone who is riding such a precarious wave, and as bitcoin seems to be coming apart your absence of humility suggests a disconnect. It is absolutely appropriate for anyone, even if they have great faith in bitcoin, to take stock given the circumstances.

Bitcoin is a fabulous idea. But like the electric car, it has powerful enemies and it is not an infallibile certainty. This is not the fledgling 'foundation empire' of Asimov's sci-fi fable. Your personal sense of identity seems hostage to this crypto currency, and like love and family and dignity and truth, safeguarding your sense of identity is more important than financial prosperity. Your importance as a person is not dictated by how accurately prescient you are about bitcoins future

I strongly recommend you unhitch your wagon. Even if bitcoin goes to the moon, you will be a richer man for it.

Wed, 03/05/2014 - 14:27 | 4512673 digi
digi's picture

Don't get too overdramatic. I am sure fonestar is having loads of fun pissing all over everyone who told him otherwise here on ZH with his 600% YTD investment. If that is what you call "coming apart" I'm not sure that fonestar is the one with a disconnect here.

Tue, 03/04/2014 - 14:03 | 4507734 Gadocat99
Gadocat99's picture

It's panty waist.  Refers to children's clothing style (1930's), meaning you are a child-like person.  In this context, it doesn't make much sense.  But, you need to be given some slack -- you are having a bad day... (week?).

Tue, 03/04/2014 - 14:09 | 4507777 fonestar
fonestar's picture

fonestar is having a bad life.  But he is getting a bit richer by the day.

Tue, 03/04/2014 - 15:32 | 4508371 Rikeska
Rikeska's picture

But I want to believe!

Tue, 03/04/2014 - 14:13 | 4507805 Mercuryquicksilver
Mercuryquicksilver's picture

fonestar is simply much too incompetent to secure, or maintain, .gov employment.

 

Respectfully disagree.

Tue, 03/04/2014 - 23:57 | 4510450 digi
digi's picture

"too incompetent to secure, or maintain, .gov employment."

Oh man, it's been a while since I literally laughed out loud, but that one got me. As if you could be "too incompetent" to work for the govt. 

Tue, 03/04/2014 - 13:37 | 4507555 Scoobywan
Scoobywan's picture

I agree with your last statement, the world is filled with idiots. Unfortunately I also include you in your last statement.

Tue, 03/04/2014 - 13:46 | 4507624 fonestar
fonestar's picture

fonestar will give the Zerohedge community credit for being two points smarter than the stawks crowd.  But compared to the hackers & cryptoanarchists you're a bunch of dumb apes.

Tue, 03/04/2014 - 14:54 | 4508090 TruthInSunshine
TruthInSunshine's picture

fonestar is now pumping anuscoin to his family & friends.

It's a digital currency where you deposit assets into it & watch it ultimately turn into shit.

Tue, 03/04/2014 - 15:56 | 4508535 OpenThePodBayDoorHAL
OpenThePodBayDoorHAL's picture

The ZH war on Bitcoin continues. Who would have thought a site like this would be on the wrong side of a battle like this. C'mon, "site loses $600k"? What was the amount robbed from people in the US via Fed theft, Wall St theft, LBMA theft? 

Tue, 03/04/2014 - 13:07 | 4507373 666
666's picture

Why do I have a sneaking suspicion that the NSA was the hacker of this and Mt Gox? Especially after Congress said they have no problem with BitCoin.

Tue, 03/04/2014 - 13:48 | 4507641 fonestar
fonestar's picture

fonestar doubts there is a relationship between this and the testimony.  But yes, if the intelligence community wanted to accumulate Bitcoin without buying it, they might go about hacking exchanges.  Maybe they can get the "Syrian Electronic Army" to do that for them?

Tue, 03/04/2014 - 12:22 | 4507096 Doubleguns
Doubleguns's picture

I'm with Boris!!!

Tue, 03/04/2014 - 12:17 | 4507057 Occident Mortal
Occident Mortal's picture

From what I have seen Bitcoin is about as secure as Internet Explorer.

 

You use it over the internet, it's an electronic currency, but any determined hacker can basically clean you out.

 

If large companies with hundreds of millions of dollars can get hacked, what chance does an individual stand?

Tue, 03/04/2014 - 12:20 | 4507081 fonestar
fonestar's picture

That's bullshit plain and simple.  Bitcoin has never been hacked, never had any security issues.

Tue, 03/04/2014 - 12:42 | 4507221 angel_of_joy
angel_of_joy's picture

World needs suckers like you...

Tue, 03/04/2014 - 12:46 | 4507251 Rylie
Rylie's picture

Tell that to the people that just lost 600K.

You dont have to hack a Bitcoin user, just hack the exchanges they have more coins.

Tue, 03/04/2014 - 12:49 | 4507266 fonestar
fonestar's picture

Yeah, so don't keep your coins on an exchange.  Why is that so difficult to understand?

Tue, 03/04/2014 - 13:39 | 4507571 Crash Overide
Crash Overide's picture

Do you and the BTC underground meet in dark alleys and exchange USB drives all cloak & dagger style?

That's like so 80's bro...

Tue, 03/04/2014 - 13:54 | 4507673 JLee2027
JLee2027's picture

Yeah, so don't keep your coins on an exchange. 

If there is no exchange, what is the purpose? Might as well be buried 6 feet down in a secret location in Siberia.

Wed, 03/05/2014 - 00:06 | 4510476 digi
digi's picture

Today's exchanges are coded lazily at best. You can hold your own bitcoins on your own computer or even a piece of printed out paper if you really want to get hack proof. You can send these btc's to anyone you'd like to do business with, there is no need for exchanges to transact. In the future exchanges will be setup so that the owner of the exchange are not holding your coins. There's nothing stopping this from happening right now other than its easier to do it the lazy way and there are plenty of people dumb enough to let others hold their coins for them. We are now starting to see how that strategy works out, spoiler alert, you lose your coins. I expect a few more exchanges to go down in this manner before people demand 2nd generation exchanges that don't hold the users coin. This same thing has been going on for longer in the bitcoin black markets and it seems after about 5 massive thefts the users have finally learned thair lesson and the more secure exchanges that don't hold all users coins are starting to become more popular as the remaning old ones who havent stolen yet die off from lack of trust.

Tue, 03/04/2014 - 14:16 | 4507819 Mercuryquicksilver
Mercuryquicksilver's picture

But I checked your wallet, and you still keep your <2 coins on the same exchange.

Tue, 03/04/2014 - 14:20 | 4507853 fonestar
fonestar's picture

fonestar does not keep any coins on any exchange ever.

Liar.

Tue, 03/04/2014 - 13:16 | 4507434 tmosley
tmosley's picture

>Gold Has never failed

>Tell that to the people who had their gold stolen by MF Global

Double your pleasure with Doublestandard Gum.

Tue, 03/04/2014 - 13:26 | 4507490 Toolshed
Toolshed's picture

You have now demonstrated your utter lack of knowledge. Well done!!

Tue, 03/04/2014 - 13:34 | 4507539 fonestar
fonestar's picture

No, he just exposed your epic stupidity.

Tue, 03/04/2014 - 13:53 | 4507662 Toolshed
Toolshed's picture

Coming from you. fonestar, that is a compliment. Thanks!

Tue, 03/04/2014 - 13:53 | 4507654 Toolshed
Toolshed's picture

Oops! I must have clicked on the wrong reply button. My comment above was to tmosely's comment:

Gold Has never failed

>Tell that to the people who had their gold stolen by MF Global

Double your pleasure with Doublestandard Gum.

My intention was to comment on tmosely's apparent lack of being able to differentiate between paper gold and physical gold.

Sorry for the confusion.

Wed, 03/05/2014 - 00:22 | 4510511 digi
digi's picture

TMosleys comparison is actually a very apt one toolshed. He is being sarcastic by talking about gold in the same way people are responding to the loss of bitcoins at exchanges. Don't take his statement at face value it is intended to show the lunacy going on here. All of the people who lost their bitcoins to MT.gox never really had them in the first place. They had given them to mt gox long before they were reported missing by mtgox in exchange for an account balance at mtgox. You could even get vouchers from Mt.gox for your btc held by them, in this sense, paper btc. Why anyone would do this considering how easily transactable btc is in it's true form is beyond me, but alas people are dumb.

TMosley is trying to point out that everyone here crying about how unsecure btc is would be akin to people crying that gold is unsecure because a bunch of people who gave their gold to someone else in exchange for paper lost their gold. And this is basically what is happening. If you hold your own real btc in your own paper wallet at your own house, no one is going to be able to take it from you, much like if you hold your own real gold. If you give up your real assets that have value to someone else in exchange for credit with that institution, well now you are taking quite a risk.

Tue, 03/04/2014 - 13:38 | 4507564 snr-moment
snr-moment's picture

I've fished the same pond for years and never caught an MFGlobal.

Tue, 03/04/2014 - 14:51 | 4508067 eddymunster
eddymunster's picture

"Why did you rob the bank?"

 

"That's where they keep the money!"

Tue, 03/04/2014 - 12:56 | 4507314 whatthecurtains
whatthecurtains's picture

Do you televagelize on the side?

Tue, 03/04/2014 - 14:34 | 4507957 fonestar
fonestar's picture

The Rev. fonestar is on local UHF.

Tue, 03/04/2014 - 13:01 | 4507340 automaton
automaton's picture

What's not bull shit is that you are delusional.  Plain and simple.

Tue, 03/04/2014 - 13:26 | 4507491 malek
malek's picture

And socialism/communism has never been proven to be a bad approach either.

And the US forces successfully saved the village which they had to destroy for doing so.

Tue, 03/04/2014 - 14:05 | 4507743 sleigher
sleigher's picture

cold wallets FTW!

Wed, 03/05/2014 - 00:12 | 4510489 digi
digi's picture

No individual who was properly storing their own coins has ever been stolen from. The day that provably happens and is reported you can expect bitcoin to lose almost all of it's value very quickly. This is what fonestar means by bitcoin has never been hacked. And he is correct in that sense. The cryptography behind the bitcoin network when properly implemented by the end user has proven to be unhackable despite great efforts. I might point out that an individual storing their own coins holds many advantages over a large company who by their very nature has to advertise their own wealth and location of their servers to continue to acquire customers. As an individual no one has to know you even have coins. There's tons of wallets on the block chain with 100k+ USD sitting in them that no one has any idea the location of.

Tue, 03/04/2014 - 12:04 | 4506951 CH1
CH1's picture

They are not mad, Fonestar, they are proudly ignorant.

Let them spew their idiocy and keep moving forward.

Tue, 03/04/2014 - 13:40 | 4507581 Crash Overide
Crash Overide's picture

I know stuff.

Tue, 03/04/2014 - 15:01 | 4508136 ElvisDog
ElvisDog's picture

It's not even fun to give shit to the bitcoin believers any more. It's like beating up the wimpy kid at school who wears a back brace.

Wed, 03/05/2014 - 00:25 | 4510523 digi
digi's picture

The same one with a 600% YTD return on his investment.

Tue, 03/04/2014 - 12:01 | 4506952 johnQpublic
johnQpublic's picture

i actually can picture needing to go back to tradig in gold and silver

fiat is a fucked system doomed to failure

Tue, 03/04/2014 - 12:05 | 4506972 CH1
CH1's picture

i actually can picture needing to go back to tradig in gold and silver

THAT would be a sensible thing to do!

Tue, 03/04/2014 - 12:11 | 4506997 fonestar
fonestar's picture

Except most of them seem confused between using gold and silver and a gold and silver standard.  Plus they want government to remain involved in the whole affair.

Tue, 03/04/2014 - 12:06 | 4506980 ejmoosa
ejmoosa's picture

And that's why you'll end up broke......

Tue, 03/04/2014 - 12:10 | 4507005 TheReplacement
TheReplacement's picture

Why would anyone be mad?  We are sorry for the poor people who got taken.  We tried to warn on some of the weaknesses.  People aren't even mad at you.  You are entertaining but annoying.

Tue, 03/04/2014 - 12:13 | 4507032 fonestar
fonestar's picture

So how does a person who bought BTC < $50 feel "taken"?  fonestar is laughing all the way from the bank.

Tue, 03/04/2014 - 12:48 | 4507263 Rylie
Rylie's picture

You could have bought at $50 but if they were stolen the value to you is still $0

Tue, 03/04/2014 - 12:50 | 4507275 fonestar
fonestar's picture

fonestar has never had Bitcoin stolen from him.  Never got Zhou Tonged.

Wed, 03/05/2014 - 00:32 | 4510550 digi
digi's picture

Those people trusted their bitcoins to a 3rd party. Kind of ironic when the entire system was devised as a way to eliminate 3rd parties. Anyone with even a modicum of understanding of bitcoin did not have their bitcoin stored on an exchange. This is like a file storage service going offline and everyone decrying digital storage of information as a whole when in reality the failure involved using a decentralized protocol in a centralized way.

Tue, 03/04/2014 - 13:43 | 4507601 Crash Overide
Crash Overide's picture

"fonestar is laughing all the way from the bank."

Why do the fonestar need a bank when he has Bitcoins?

 

Wed, 03/05/2014 - 00:34 | 4510555 digi
digi's picture

The traditional saying says "to the bank" hence the "from the bank". He is going away from the bank. It's even italicized.

Tue, 03/04/2014 - 13:23 | 4507479 Toolshed
Toolshed's picture

Speak for yourself. I have absolutely zero sympathy for the bitcultist morons.

Tue, 03/04/2014 - 12:11 | 4507014 jcaz
jcaz's picture

Mad?  Hardly.  

Mocking?  Absolutely.

You told us this exchange was safe, Foney-  once again, your cluelessness is showing.....

Tue, 03/04/2014 - 12:14 | 4507037 fonestar
fonestar's picture

Which exchange you fucking moron?  The only exchange fonestar has ever used is BTC-e.

Tue, 03/04/2014 - 13:02 | 4507344 whatthecurtains
Tue, 03/04/2014 - 13:22 | 4507473 Toolshed
Toolshed's picture

Thanks for that link. And these are the entities we are supposed to trust? Unknown site locations and unknown administrators always inspire the kind of trust every currency needs. LOL!!!!

Wed, 03/05/2014 - 00:36 | 4510563 digi
digi's picture

There were no exchanges when bitcoin was created. You need trust no one. That is the whole fucking point.

Tue, 03/04/2014 - 13:46 | 4507620 Crash Overide
Crash Overide's picture

"The only exchange fonestar has ever used is BTC-e."

Why does fonestar need an exchange if he has the Bitcoins?

Tue, 03/04/2014 - 14:14 | 4507815 fonestar
fonestar's picture

To purchase Litecoin and Namecoin using Bitcoin obviously.

Tue, 03/04/2014 - 14:42 | 4508013 Crash Overide
Crash Overide's picture

Wait, there's more of these things?

Tue, 03/04/2014 - 21:26 | 4509996 saulysw
saulysw's picture

Taste the rainbow of snake oil!

Tue, 03/04/2014 - 12:26 | 4507125 tmosley
tmosley's picture

No he didn't, you ridiculous liar.

He SPECIFICALLY told you that Mt. Gox was on the way out and would wind up bankrupt.  He also SPECIFICALLY told you to keep your bitcoin in your own wallet.

Why the fuck would anyone want to keep their bitcoin in a bank?  You are your own bank with bitcoin!

Tue, 03/04/2014 - 12:30 | 4507154 fonestar
fonestar's picture

Anyone can go back and read the threads.  No real coiner has been on Gox for a long time before their bankruptcy.

Tue, 03/04/2014 - 13:04 | 4507368 whatthecurtains
whatthecurtains's picture

Yes that was why it was the biggest?

Tue, 03/04/2014 - 13:18 | 4507443 tmosley
tmosley's picture

So will you decry gold when the largest gold exchange goes bankrupt?

Wed, 03/05/2014 - 03:28 | 4510824 MeelionDollerBogus
MeelionDollerBogus's picture

digits posing as gold? Of course, same as paper posing as gold. Bitcoin is the same: digits posing as money, but aren't money of any sort.

Wed, 03/05/2014 - 03:38 | 4510829 Skateboarder
Skateboarder's picture

I simply have no time for bitcoin in my life. If I did, I'm sure my life would be burdened and worse. What a ripoff. Go skateboarding instead. I enjoyed a few games of skate and a good session with a homie at at the skatepark. Aint no ponzcoin gonna buy your landing some sweet tricks on the ramps.

Now PMs, there's something real.

Wed, 03/05/2014 - 03:27 | 4510820 MeelionDollerBogus
MeelionDollerBogus's picture

Direct comment URL or get the fuck out

Getting sick & tired of this fraudulent claim. Not one comment ever from anyone, including Bonestar, said such a warning of MtGox.

Tue, 03/04/2014 - 12:17 | 4507061 daemon
daemon's picture

" ... what is a more likely scenario? "

That's precisely where I have a problem. We live in a time where I'm definitely not sure about what a "likely scenario" could mean.

Tue, 03/04/2014 - 12:21 | 4507087 fonestar
fonestar's picture

Clocks always work clockwise.  Before, during and after the USD's demise.

Tue, 03/04/2014 - 12:35 | 4507176 daemon
daemon's picture

" Clocks always work clockwise. "

I agree, but is it only some currency demise, we will experience ?

Tue, 03/04/2014 - 13:10 | 4507406 Toolshed
Toolshed's picture

"Clocks always work clockwise.  Before, during and after the USD's demise."

I guess that comment would make some sense........if the internet was a clock.

Wed, 03/05/2014 - 03:25 | 4510818 MeelionDollerBogus
MeelionDollerBogus's picture

Actually, a shit-ton of network specific tools, and hardware, depend on time-stamps & clock signals so while it doesn't work "like" a clock, without one it's tits-up and not working. Very little computing or direct data transfer is done purely asynchronously.

Tue, 03/04/2014 - 12:37 | 4507194 LoneStarHog
LoneStarHog's picture

"Kids and young people..." Oh! Now I understand your audience; Michelle Obozo's "Knuckleheads".

Tue, 03/04/2014 - 12:55 | 4507310 orez65
orez65's picture

Dear Fonestar:
No one has to go back to the 18th or 19th century.
The US Dollar did quite nice when it was exchangeable for gold coin.
If could be the same again.

Tue, 03/04/2014 - 14:16 | 4507822 fonestar
fonestar's picture

So your solution is to go back onto government-sponsored money?  fonestar doesn't care if they say it's gold-backed or whatever, he isn't buying it.

Tue, 03/04/2014 - 13:41 | 4507582 snr-moment
snr-moment's picture

Depends on how smart they are.   My kids like to collect Morgans.  Bitcoin, not so much.

Tue, 03/04/2014 - 16:14 | 4508633 ebear
ebear's picture

"It's pretty obvious most of you are just mad."

I think sceptical would be a more accurate description.   For a currency to have wide acceptance you have to convince the sceptics, and there's a lot more of them today now that these exchanges have gone under, for whatever reason.

I have no doubt digital currency will be introduced at some point.  Once government figures out how to run it without getting hacked then you'll have your bitcoins, but be careful what you wish for as the motive will be tracking and taxation, not personal freedom.


Tue, 03/04/2014 - 22:19 | 4510174 UselessEater
UselessEater's picture

or Once government figures out how to be the only hacker, no point sharing the power to skim and digitally alter peoples assets/debts... roll on one world gov incorporated for world peace and equality that equally shares oppression and poverty across the entire globes 99%

Tue, 03/04/2014 - 12:00 | 4506935 johnQpublic
johnQpublic's picture

i actually found a dead stinkbug in mine

but it wasnt able to make off with any coin

Tue, 03/04/2014 - 12:15 | 4507044 unrulian
unrulian's picture

What's a stinkbug?

Tue, 03/04/2014 - 12:27 | 4507133 tmosley
tmosley's picture

More commonly known as a Bernanke.

Tue, 03/04/2014 - 12:00 | 4506939 JohnnyBriefcase
JohnnyBriefcase's picture

Gosh, I hope nobody hacks into that pond out back and steals all my precious metals...

Tue, 03/04/2014 - 12:02 | 4506960 johnQpublic
johnQpublic's picture

commencng hack

i have a wetsuit

Wed, 03/05/2014 - 00:41 | 4510575 digi
digi's picture

It's a far more likely mathematical probability than anyone stealing an individuals properly stored bitcoins.

Wed, 03/05/2014 - 03:21 | 4510815 MeelionDollerBogus
MeelionDollerBogus's picture

Due to the extreme effort of searching just one pond, and difficulty in locating all ponds, and difficulty in figuring out which ponds not to search, combining all the search-hours & equipment, no

in fact it's much easier & therefore much more likely to see bitcoin wallets & exchanges hacked or raided. Much, much more likely.

Wed, 03/05/2014 - 04:01 | 4510834 digi
digi's picture

You must have missed the part about "properly stored bitcoins". I made no claims about ones that were left out in the open for the taking. I guess I will just keep posting the same image like you do with that 6$ bitcoin transaction. Turns out there are quite a few more numbers in 2^256 than there are square inches on the surface of the earth.

Wed, 03/05/2014 - 05:03 | 4510897 MeelionDollerBogus
MeelionDollerBogus's picture

Meaningless. There's nary a few seconds to chunk through giant swaths of 2 256 using an all-optical VLSI machine dedicated to brute-forcing such a small key size. We're talking minimum 10 terahertz per board.

Wed, 03/05/2014 - 14:32 | 4512691 digi
digi's picture

You have no proof that exists. But even if it did, that's still not fast enough. It seems we can add basic math to the list of things you claim to understand but quite clearly don't.

 

http://miguelmoreno.net/wp-content/uploads/2013/05/fYFBsqp.jpg

Thu, 03/06/2014 - 11:42 | 4516802 MeelionDollerBogus
MeelionDollerBogus's picture

invalid. Not even 1 quadrillionth of 1 quadrillionth of 1 quadrillionth of the power you speak of would get the job done completely because you don't transpose every digitpattern into the same instance of time.

Wed, 03/05/2014 - 03:20 | 4510812 MeelionDollerBogus
MeelionDollerBogus's picture

Shit! These ones have bugs. Think it's contagious?

Tue, 03/04/2014 - 13:18 | 4507405 ArrestBobRubin
ArrestBobRubin's picture

dupe

Tue, 03/04/2014 - 13:18 | 4507407 ArrestBobRubin
ArrestBobRubin's picture

dupe

Tue, 03/04/2014 - 13:19 | 4507408 ArrestBobRubin
ArrestBobRubin's picture

dupe 3! Sorry folks

Tue, 03/04/2014 - 11:53 | 4506889 fonestar
fonestar's picture

They're gone forever.  Into the hands of someone more technically competent than Flexcoin's IT staff. 

(Or perhaps into the wallets of Flexcoin's IT staff).

Tue, 03/04/2014 - 13:24 | 4507486 RaceToTheBottom
RaceToTheBottom's picture

Anyone want to bet that those two addresses could be traced back to NSA labs?

Tue, 03/04/2014 - 11:45 | 4506820 BaBaBouy
BaBaBouy's picture

Such Perfect Product...

AND, One By One They Crash...

Tue, 03/04/2014 - 11:46 | 4506835 Max Hunter
Max Hunter's picture

If I were in charge of the current monetary system and something came to threaten it, I would simply pump up the price of the threat (volitile pricing) and smash any security comfort it offers. I would allow greed and fear work its magic. It really wouldn't be that hard..

Tue, 03/04/2014 - 11:50 | 4506849 Occident Mortal
Occident Mortal's picture

Your like a guy trying to cross the Atlantic Ocean on a pogo stick and when it doesn't work...

 

It's not the pogo sticks fault... It's this stupid water, it's not strong enough.

 

 

 

Tue, 03/04/2014 - 11:48 | 4506850 Headbanger
Headbanger's picture

Fonerats!!   You're alive!! 

Tue, 03/04/2014 - 11:54 | 4506897 nelsonmandella
nelsonmandella's picture

Only the customers who did not set up passwords were hacked ? they used google authenticate to sign in !

 

Tue, 03/04/2014 - 11:54 | 4506898 nelsonmandella
nelsonmandella's picture

Only the customers who did not set up passwords were hacked ? they used google authenticate to sign in !

 

Tue, 03/04/2014 - 11:37 | 4506764 FinalEvent
FinalEvent's picture

Uhm, because bitcoin lives on the network perhaps?

While I'm pro bitcoin, gold can't be stolen through my internet connection.

Whatever you want, bitcoin is dependent on the internet, period.
It's an extra layer of depenency which gold lacks.
Sure, it also brings great benefits, but it is an extra layer of dependency

Tue, 03/04/2014 - 11:39 | 4506786 fonestar
fonestar's picture

Bitcoin can't be stolen through fonestar's internet connection.  He's not dumb enough to leave it online on an exchange.

Tue, 03/04/2014 - 11:52 | 4506883 RevRex
RevRex's picture

So you never use the internet in your bitcoin transactions?

 

lol@StupidPeople

Tue, 03/04/2014 - 11:54 | 4506896 fonestar
fonestar's picture

The majority of fonestar's Bitcoin is stored in offline wallets.  fonestar uses one online wallet and always keeps all his spending Bitcoin in that.

Tue, 03/04/2014 - 12:02 | 4506957 Duke of Earl
Duke of Earl's picture

It is not necessary to have a connection to receive BTC.  Thus, you can deposit into any account you like of yours indefinitely.

When you want to actually move the money or spend it, you need a signed transaction.  This can be done offline, then you take the signed transaction to an online computer and publish the transaction to the blockchain.

No internet connection is necessary to the hoard.

Tue, 03/04/2014 - 13:40 | 4507579 Duke of Earl
Duke of Earl's picture

Downvotes for a post containing simple facts?  Try not to be so obvious about having a blind agenda.

Tue, 03/04/2014 - 13:52 | 4507655 Crash Overide
Crash Overide's picture

So you could say it's like handing someone a gold coin but you don't have to connect to the internet to tell a blockchain?

Tue, 03/04/2014 - 14:00 | 4507708 Duke of Earl
Duke of Earl's picture

Not exactly.  The blockchain must be told and that requires a connection to the internet.  The signed transaction is what must touch the internet.

The usual way to do this is to type up a transaction on a computer which has no access (ideally disabled) at all to the internet.  Sign it and save it and only it to a USB.

Take the USB to a computer connected to the internet and publish to the blockchain.  The purpose here to to never allow anyone or anything to have the opportunity to copy/steal private keys on the offline computer.  A signed transaction does not contain this information so it is safe to move to an online computer.

 

Tue, 03/04/2014 - 11:52 | 4506880 Duke of Earl
Duke of Earl's picture

It's not an "extra" layer, it's has different weaknesses.  Eg. try moving your gold and silver stash across borders versus moving your bitcoin stash.

It's also not the only thing stolen on the internet.  Passwords, identities, credit cards.  If BTC is being used as a store of wealth like I assume you are using gold for in your example, then it shouldn't *be* connected to the internet.

Tue, 03/04/2014 - 13:11 | 4507409 FinalEvent
FinalEvent's picture

I agree with you, but gold doesn't need Internet. Gold is analog, therefore very robust as a store of value.

Bitcoin *needs* Internet, otherwise it's useless thus worthless. No Internet, no bitcoin, while gold will still exist.

That's why I said extra layer.

It don't necessarily means that it's wrong, it also adds a great deal of benefits. I own both of them 50/50 compared to dollar.

Tue, 03/04/2014 - 19:35 | 4509598 Duke of Earl
Duke of Earl's picture

Understood and agreed.  Was just trying to point out that it's different.  The odds of the loss of the Internet is a risk I hope most people are willing to take. :)  That scenario has a lot of outcomes.

 

Time will tell which is better if that's even a fair statement.  I think in the current ideal that they compliment each other well.  I get a lot of downvotes for pointing out the flaws in gold ownership here, but...it ain't perfect either.

Tue, 03/04/2014 - 11:38 | 4506772 jbvtme
jbvtme's picture

once you steal a bitcoin how do you spend it without getting caught?

Tue, 03/04/2014 - 11:42 | 4506801 fonestar
fonestar's picture

You just spend them like any other coin.  Remember, they're just addresses... not tied to physical people.

Wed, 03/05/2014 - 00:46 | 4510580 digi
digi's picture

If you stole a large enough sum from the wrong people, you might find yourselve having a hard time spending it without being caught. Of course there are plenty of hackers working on a solution to this dillemma as we speak. This solution should in theory bring true anonymitity to bitcoin.

Wed, 03/05/2014 - 03:07 | 4510794 MeelionDollerBogus
MeelionDollerBogus's picture

Doesn't matter.

When those people find out how spent their bitcoinz they will at best try to cast magic missile on you.

You're pretty much good to go.

Tue, 03/04/2014 - 11:40 | 4506787 BTCTalks
BTCTalks's picture

I'm having trouble wading though all of this FUD

Tue, 03/04/2014 - 11:50 | 4506868 fonestar
fonestar's picture

It doesn't matter.  FUD is a sign of desperation.  Dimon tried not to sound scared discussing Bitcoin, same with these foolz.

Tue, 03/04/2014 - 15:28 | 4508351 ElvisDog
ElvisDog's picture

Desperation for what you idiot? Your long-hoped for death of the dollar? Bitcoin will always be what it is now - used for P2P transactions between a small, rabid group of true believers. Until people get bored with it and move on to the next "new" thing.

Wed, 03/05/2014 - 00:50 | 4510585 digi
digi's picture

"Bitcoin will always be what it is now - used for P2P transactions between a small, rabid group of true believers. Until people get bored with it and move on to the next "new" thing."

 

You do realize how many people said the exact same thing about email and even the internet itself right? Along with countless other technologies.

Wed, 03/05/2014 - 03:17 | 4510789 MeelionDollerBogus
MeelionDollerBogus's picture

#4 most people had nothing to say about the Internet itself as it was progressing into public view. Some thought it odd that it was used at all and then suddenly it was everywhere and no one questioned it once they saw how useful it was. That's that.

The biggest impact the Internet had on most people's opinions was the dotcom bubble because people don't ignore money even if it's a bubble.

Wed, 03/05/2014 - 03:02 | 4510790 MeelionDollerBogus
MeelionDollerBogus's picture

#1 absolutely no one said that about email

#2 absolutely 80% or more of people using facebook stopped using email. They flat out don't care unless a job makes them use it. They have those email accounts only because facebook demands one be given.

#3 with sms validation to cells for Google and I imagine Yahoo, pepole won't need another email address & may or may not care if one day email is gone so long as something else takes its place & is convenient.

I personally use email a lot but the #1 purpose of it is to email myself between accounts depending on where I am and one to my own phone.

I have next to no value from messages from others unless it concerns money, transportation or something generally related. A lot of what needs to be said will be done in person & the messages are just to coordinate the time & place to do precisely that.

The stuff from myself to myself is to secure locations & plans. I make grocery lists, I make reminders for sites to check, recipes to read, articles, etc., and I ensure that certain accounts are only accessed from certain networks, to ensure connections are rarely if ever drawn between them for the snoopers.

Wed, 03/05/2014 - 03:39 | 4510833 digi
digi's picture

Tons of people were saying that, especially those entrenched in business models that would be disrupted by it. Blockbuster said netflix would never catch on. Plenty of brick and mortar stores claimed amazon was a joke.

"By 2005 or so, it will become clear that the Internet's impact on the economy has been no greater than the fax machine's" Paul Krugman

Robert Metcalfe (the inventor of Ethernet) wrote an article for Infoworld in December 1995 in which he predicted, "I predict the Internet will soon go spectacularly supernova and in 1996 catastrophically collapse."

"I think there is a world market for maybe five computers." -- Thomas Watson, chairman of IBM, 1943.

 "I have traveled the length and breadth of this country and talked with the best people, and I can assure you that data processing is a fad that won't last out the year." -- The editor in charge of business books for Prentice Hall, 1957.

“There is no reason anyone would want a computer in their home.” — Ken Olson, president, chairman and founder of Digital Equipment Corp. (DEC)

“Heavier-than-air flying machines are impossible.” — Lord Kelvin, British mathematician and physicist

“The Americans have need of the telephone, but we do not. We have plenty of messenger boys.” — Sir William Preece, Chief Engineer, British Post Office, 1878.

“This ‘telephone’ has too many shortcomings to be seriously considered as a means of communication. The device is inherently of no value to us.” — A memo at Western Union, 1878 (or 1876).

“The horse is here to stay but the automobile is only a novelty – a fad.” — The president of the Michigan Savings Bank

“The cinema is little more than a fad. It’s canned drama. What audiences really want to see is flesh and blood on the stage.” -– Charlie Chaplin

“The world potential market for copying machines is 5000 at most.” — IBM, to the eventual founders of Xerox

“Fooling around with alternating current is just a waste of time. Nobody will use it, ever.” — Thomas Edison

“Television won’t last. It’s a flash in the pan.” — Mary Somerville, pioneer of radio educational broadcasts, 1948.

“When the Paris Exhibition [of 1878] closes, electric light will close with it and no more will be heard of it.” – Oxford professor Erasmus Wilson

“The wireless music box has no imaginable commercial value. Who would pay for a message sent to no one in particular?” — Associates of David Sarnoff 

“Rail travel at high speed is not possible because passengers, unable to breathe, would die of asphyxia.” — Dr Dionysys Larder


Mind you all of these were considered very smart people at the time of their respective quotes.

TLDR, bitcoin is so early in it's infancy people haven't even begun to realize the possiblities. Money is information in it's purest form, bitcoin is here to remind us of that.

Wed, 03/05/2014 - 04:58 | 4510888 MeelionDollerBogus
MeelionDollerBogus's picture

Not a one.

Not one person in any newspaper, magazine, in person, anywhere said any of those things for the Internet.

What was said in 1943 about computers is a story so detached from your first comment it can not be linked.

Dismissed.

They were still using ring core memory at the time, asshole. You are dismissed.

Do NOT follow this link or you will be banned from the site!