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Bitcoin Exchange Hacked - Cyber Attacks Show Increasing Technology and Finance Risk
Bitcoin Down 12 Percent this Year - Cyber Attack Shows Technology Risk
2015 has not started well for bitcoin with prices having fallen 12%, from $320 to $288. The cyber attack on a leading bitcoin exchange is the latest challenge for the fledgling digital currency.
Bitstamp, Europe's leading bitcoin exchange - and third largest globally - has been off-line following a breach in their system by hackers on Sunday night. The UK based company has suspended lodgements and withdrawals and reported that roughly $5.1 million, around 19,000 BTC, had been ‘lost.’ The revelation follows the disclosure that Bitstamp's wallet system has been compromised, prompting it to halt deposits and later shut down its platform entirely according to Coin Desk.
Today, Bitstamp said it expected to resume trading within 24 hours after suspending operations because of the ‘security breach.’
The bulk of the digital currency units are in cold storage - on computers not connected to the internet - and are therefore safe from further predations, the company has said. “Bitcoin customers can rest assured that their bitcoins held with us before temporary suspension of services . . . are completely safe and will be honoured in full,” Bitstamp said.
2014 was a tough year for bitcoin with prices falling from over $800 to just over $300. At its height, Bitcoin was trading at $1240. But in the run-up to and following the bankruptcy of the leading Mt Gox exchange, it has declined in value to around $285.
Bitcoin or BTC in U.S. Dollars - 5 Years (Thomson Reuters)
Some say this reflects a steady loss of faith of it's users in their ability to trade the currency safely due to exchange and technology risk. Others say it was a speculative bubble and was destined to burst and it is healthy it did.
We see the value in owning bitcoins as a form of cash diversification and see merits in owning and having a very small allocation to bitcoin. It is slowly proving itself as a means of exchange. However, whether it will become a store of value is another matter.
Given the fact that we live in an era of currency wars and bail-ins - having a small allocation to such a liquid and fairly easily traded currency that is independent of debasing fiat currencies is not a bad idea.
When the chickens of government and central bank profligacy finally come home to roost, as they always do, alternative digital currencies may serve as an accepted medium of exchange.
But today's news highlights the vulnerability of any form of "virtual wealth.”
By virtual wealth, we mean many of our investments and savings today which are either in digital form - deposits - or intermediated by digital platforms - most investments including gold ETFs and digital gold trading platforms.
It is imprudent to rely on any asset which derives its value from or can only be accessed through the internet and certain online platforms and websites.
http://www.goldcore.com/us/gold-blog/bitcoin-12-percent-year-hackers-sho...
As tensions mount geopolitically - thankfully the consequences of military confrontation between nuclear-armed superpowers makes war a last resort - the Western bloc, Russia and China have all been experimenting with non-conventional warfare which include disabling the internet in target countries to collapse the economy.
If the internet and the financial system was brought down through unconventional warfare, criminal cyber attacks or simply a major glitch in the system - which has grown so complex that it is incomprehensible even to specialists - the assets of many people would be ‘erased’ and inaccessible.
Technology is a great enabler. But it can also be a great disabler. It is important to be aware of this.
Cyber and technology risk in the modern era is another reason to own physical coins and bars in an allocated and segregated manner, in the safest vaults, in the safest jurisdictions in the world.
Review of 2014 – Gold Second Best Currency, +13% in EUR, +6% GBP
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Anytime you pinheads show up here pumping bitcoin, I can promise you a virtual fist to the face which is exactly what you deserve,
Here is a free asteroid calculator you can download as Excel And he calculates the equivalent atomic bombs of energy of the asteroid of most interest this month http://nukeprofessional.blogspot.com/2015/01/updated-january-asteroid-ri...
"Bitcoin: The faster way to give the Zionists more of your wealth."
Then banksters need to repay us.
You have to watch the latest Hobbit. What you people here have is called Dragon Sickness. It will ruin you if you don't give up your gold and buy bitcoin.
Gold will make some short-term advances but longer term it still has a bottom to find...
http://www.globaldeflationnews.com/gold-elliott-waves-forecast-a-multi-m...
Elliott waves are bullshit.
Better off reading chicken bones.
If you're in a financially driven economy they do matter...but simply put finance doesn't matter all that much in the USA.
this country is driven by liquidity...and I ain't talking inflation.
Top line growth is what matters to the business...thats what "moves the needle" on the entire enterprise. Banks only bring more taxes and more regulation.
Bitcoin's advantage over digital dollars is anonymity which is also a liability in cases where they are lost or stolen. I don't think people should stop using it, but they have to accept the risk and manage it. It might be best not to trust an exchange with your bitcoins, they can be held locally and sent directly verified by blockchain although it can be less convenient in some ways. If you choose to keep them local, you run the risks that come with it such as a crashed hard drive or virus endangering them. Either way you have to accept the risk and take the precautions. I'm sure there will be future digital currencies that offer more options since many new ones emerge each day but have not reached critical mass.
"Bitcoin's advantage over digital dollars is anonymity "
No, they are not anonymous.
The users prefer to be, the blockchain is public, here's a guide that helps.
https://en.bitcoin.it/wiki/Anonymity#Staying_Anonymous
https://en.bitcoin.it/wiki/Category:Mixing_Services
You mean that out of everything that this and other govts across the planet surveil, bitcoin isnt and simply cannot be one of them? Like the business transactions of places they're used? The little ATM cards the bitcoin-ites on here are bragging about?
Mmmkay.
My money's in gold mining stocks, I don't give a shit either way honestly.
Then don't pump the propaganda.
Go back and read my first post, I in no way pumped it.
When the ponzi breaks down the global internet will be trashed and only local nets will exist and that will only be true if there are locals able to set them up. When the shit hits the fan governments will snuff out all of this fun stuff due to "security" concerns. Good luck to you all.
The global Ponzi will phase into new paradigm. Digital Currencies. There is such a thing as evolution. We are moving away from the stone age , not towards it.
All you bitcoin trolls are pimping the anonymity of bitcoins and yet, somehow global governance is going to allow this kind of competition? You're stuck in fucking fantasy land.
Either that or they'll force it on people PRECISELY because they can hack it and monitor it. And that should worry you far more than than all your blustery bullshit propaganda.
Bitcoin is movement towards '1984'.
No thanks, pinhead.
Evolution?
You want some fucking evolution?
Here it is:
Pet rocks begat beenie babies begat bitcoin.
You obviously weren't around in 2011 when the Flat Earth Society were saying exactly that. In 2012 they were calling it a Ponzi. In 2013 it was a Tulip. You idiots said it failed 24 times in 2014.
When will you brain dead fools dream up something new ? It's boring.
Something new?
Read the comments pinhead.
It's new to you.
For somebody who hates bitcoin so much you sure do put a lot of effort into your dumb ass comments.
Thinking about it I would say that is tacit support.
wha?! bitcoin hacked?!!!? unpossible - no freaking way - where's fonestar ?
Crazytechnician is the new fonestar.
Compliment accepted. Give me a BTC address and I will reward you.
No thanks, I dont drink koolaid.
You seem to be under the impression that the down arrows which infest fonestar's idiotic rantings are compliments. Hey look, isn't that a skittle shitting unicorn over there?!
Wasnt bitcoin hacked like 50 times already , yet it STILL WORKS ?????????
Willful stupidity.
Pinhead.
+4% since I bought some. By the way you can get a bitcoin debit card here, which is in Hong Kong, that allows you to convert from alt-coins and bitcoin into cash at any ATM. I've got mine do you have yours.
https://anxbtc.com/
I will trust a super nova element (Au) over a man made electronic currency any day.
Most of the atoms in your value-less shit were made in a super nova. Just sayin'
What lost more 'value' over the last year...the super nova element or the man made crypto currency ?
Easy. Crazytechnician's credibility. Every time there's a bitcoin thread.
Instead I will go along with your mantra. Just carry on repeating this and it will come true , honest:
Must.Make.Gold.50k.
Must.Make.Silver.1k.
Guess what shit for brains, I've never even remotely said such a thing and we're having a conversation about what YOU'VE actually said. IOW, I'm stuck here in reality and you're stuck in fantasy land with skittle shitting unicorns.
Ag/Au+ just sayin.
LOL...
A bank got robbed, short the dollar!!
LOL...
someone posted something negative about BTC, post an illogical and ridiculous comment!!
"A bank got robbed, short the dollar!!"
-A BTC Fanboy
It's funny how this article, and many of the comments, simply discuss the obvious technology risk associated with BTC, and then those who are pointing out these facts are subjected to ridiculous and emotionally-driven insults.
Don't get mad at me because you drank the Kool-Aid and it had pubes in it.
"Don't get mad at me because you drank the Kool-Aid and it had pubes in it."
Classic.
Obvious troll is obvious.
Why is it obvious you say?
Because troll didn't read the article.
Troll quote:
"It's funny how this article, and many of the comments, simply discuss the obvious technology risk associated with BTC"
Article quote:
"Some say this reflects a steady loss of faith of it's users in their ability to trade the currency safely due to exchange and technology risk."
The article clearly addressed the idea that there is a technological risk with exchanges used for BTC.
You claim it didn't, troll. You must not have read the article.
sigh...
What's even better is that is his comment (which you even cited) acknowledged that the article and commenters recognized there are risks in using BC and then you somehow failed in comprehending that. "You claim it didn't"
Oopsie. You must not have read what he actually wrote. Try again.
No one said that the dollar was unhackable and totally anonymous.
And neither is bitcoin.
Pinhead.
Dollars got stolen from somebody somewhere, so short the dollar!!
http://www.marketwatch.com/story/xoom-shares-drop-after-31-million-stole...
My wallet was lost. Kill the cow.
The concept of bitcoin is brilliant. The execution of the concept, is, well... it's just been executed...
Since Bitcoin is considered property. Hand the insurance claims adjuster a dead USB drive and explain there were thousands of Bitcoin’s on the drive.
Insurance companies do not knowingly insure scams -- SOP.
Many insurance companies ARE scams. And a lot of insurance companies will ONLY insure a scam.