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Hackers break into Mt. Gox's servers, claim the company still has customers' bitcoins

By Himanshu Arora ยท 20 replies
Mar 10, 2014
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  1. While the Bitcoin community is impatiently waiting for Mt. Gox to provide details on the massive hacker attack that stole 6 percent of all the Bitcoin in the world, a group of hackers, who claim to have broken into the...

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  2. Trillionsin

    Trillionsin TS Evangelist Posts: 1,549   +235

    I may be the only one here who thinks this, but Bitcoins will end up becoming a hackers currency, and then therefor valueless. Sell them now, while you have the chance.
    cliffordcooley likes this.
  3. GhostRyder

    GhostRyder This guy again... Posts: 2,198   +593

    Yea I concur, the problem with this system is that its very hard for something like this to be protected in the era of computers and technology without having some significant protections which most users don't have (Even the ones who do have it are susceptible to being hacked).

    It would not surprise me if the owner of Mt. GOX was just trying to scam or something to be honest.
  4. ThanosPAS

    ThanosPAS TS Enthusiast Posts: 46   +12

    I don't know many things about Bitcoin but comparing it to other physical currencies, where for every 100 dollar bill there is somewhere its equivalent amount of gold to support its existance, there could be a physical certificate that verifies who is the owner of the bitcoins, as is the case for stocks, but with a code maybe on it that only you have and can redeem. It is just logical for a physical evidence to describe the monetary value of a currency.
  5. wastedkill

    wastedkill TS Evangelist Posts: 1,423   +350

    As I was saying I bet the owners of Mt Gox stole those bitcoins, it would be far too obvious I mean come on you pretty much shut your doors months before you mysteriously got hacked and then file for bankruptcy yet find some magic money in your pocket JUST enough to open a call center.....

    If your bankrupt AKA no money at all then how did you fund a call center??? If you had no money you wouldnt be able to open a waste of money call center.
  6. davislane1

    davislane1 Inquisitor Posts: 4,503   +3,501

    Bankruptcy (a legal status) and being penniless (financial state) are two closely related but separate things. My point being, you can be bankrupt (unable to pay debts) and still have money for a call center.
    Raoul Duke likes this.
  7. wastedkill

    wastedkill TS Evangelist Posts: 1,423   +350

    Ye as in still have $400million for a call center....
  8. captaincranky

    captaincranky TechSpot Addict Posts: 12,529   +2,315

    Patently not true. The US went off, "the gold standard", around 1918. It followed suit by going off "the silver standard", in 1963. If someone still has bills with the words, "silver certificate" on them, they are worth more than their face value.
    Currency is essentially worthless, but it does serve the purpose of establishing the relative value of the trades occurring in its name. So, basically, " currency is the avatar of trade".

    This is why people have been sucked into bitcoin. It's worthless too, but isn't sanctioned as an international instrument of trade.

    Another thing relating to the, "value", of bitcoin, is the truckloads of BS and FUD circulating against the Federal Reserve. Basically, given the amount of lack of trust and faith many of us have in government, it's easy to badmouth the Fed, thereby "stampeding" the herd into the, "bitcoin corral".

    Face it, the richest man in the world became ungodly stinking rich, using existing monies.

    So, if you can't do the same, it's your fault, not the bank's.

    It's always been much easier, to blame one's lack of success on someone or something else, than it is to critique, or confess to, one's own failings..
    Last edited: Mar 10, 2014
  9. davislane1

    davislane1 Inquisitor Posts: 4,503   +3,501

  10. Bitcoin, Zuckerberg and Twitter = 666
  11. captaincranky

    captaincranky TechSpot Addict Posts: 12,529   +2,315

    Wow, that was the exact number of, "likes" I had last night. Coincidence? I think not!

    I was going to ask for a custom title, "Techspot's Resident Anti-Christ".
    Last edited: Mar 10, 2014
  12. treetops

    treetops TS Evangelist Posts: 2,029   +197

    What if we traded in newtons in place of dollars, like a dollar has a newton of labor to back it up? Newtons owed n suchs. A constant. Or maybe electricity, it actually serves a purpose but we would have to have giant battery storage facilities. Or credited electricity. Gas hmm. I like it better then the gold standard since your everyday person can actually use electricity.

    The value of gold fluctuates as we find more but then so would newtons with robot tech n such and electricity with better means to produce it.

    Don't ask me why I came up with this scheme.

  13. davislane1

    davislane1 Inquisitor Posts: 4,503   +3,501

    This is only going to create an outbreak of crime not witnessed since Black Friday. Just imagine all the commodity fetishists trying to pay for their goods with "physical" newtons, as opposed to worthless "paper" ones. There's no way this scheme ends without blood, bruises and sore knuckles.
  14. wastedkill

    wastedkill TS Evangelist Posts: 1,423   +350

    Oh yea you must be correct because $500mill in bitcoins = $30mill.... you clearly didnt read the article you posted please do so...
  15. davislane1

    davislane1 Inquisitor Posts: 4,503   +3,501

    Fifth paragraph, "Mt. Gox made its bankruptcy filing Friday, as CEO Mark Karpeles acknowledged a massive loss of bitcoins -- 100,000 of its own, and nearly 750,000 belonging to its customers -- with total value approaching $500 million."

    I've done what you've asked and read the article a second time. Now, you humor me: How is a half-billion dollar loss not a half-billion dollar loss?
  16. wastedkill

    wastedkill TS Evangelist Posts: 1,423   +350

    I am trying to say the same..... $30-40mill assets is nothing compared to the $500mill they stole....
  17. captaincranky

    captaincranky TechSpot Addict Posts: 12,529   +2,315

    Because silly goose, we're already doing just that.

    In a computer analogy, "currency", is the "abstraction layer", between the actions of the machine, (physical trade), and the humans that establish, (input), the relative values of goods and facilitate the movements and dispersal of said goods, (program).

    So, we're already trading in "Newtons", "ergs", "kilowatt hours", "therms", beef, bacon, and bolts, just one step removed. I give you Newtons, you give me bacon, and the "currency" sets the price. We never need be in the same location, or even meet. It's really as simple as that.
  18. ThanosPAS

    ThanosPAS TS Enthusiast Posts: 46   +12

    That is right. No country today uses the gold standard, this was not a succesful example but the general idea in my first comment was that by having a physical evidence of the monetary value of bitcoin, I.e. certificates such the ones used in stocks, with unique codes on them (on paper), mailed to you or kept in the safes of an issuing authority could ensure a better level of security. " I mr. xxxxx am the sole proprietor of these 100 bitcoins. Code to unlock: 4ldg6s34#. With your inquiry to redeem the bitcoins, please send us a copy of your id or your passport, certified by a US government representative".
  19. GhostRyder

    GhostRyder This guy again... Posts: 2,198   +593

    Well I guess we will find out if this is true or false pretty soon. I would guess within the month because if it turns out the company is trying to steal the coins, then they are most likely going to be caught. This in no way is the perfect heist or anything.
  20. Not trying to be rude, but that was the best laugh I had today, If only that were still the case, Now we have fiat money that derives its value from government regulation or law. Before fiat money, currency was backed by metals, primarily silver or gold. After World War II, the Bretton Woods accord set up a world-wide system of currencies that was pegged to the US dollar, while the US dollar was itself pegged to gold. The Nixon Shock of 1971 ended the convertibility of the United States dollar to gold. Since then, all reserve currencies have been fiat currencies, including the U.S. dollar and the Euro.Fiat money has been defined variously as:
    --any money declared by a government to be legal tender.
    --state-issued money which is neither convertible by law to any other thing, nor fixed in value in terms of any objective standard.
    --intrinsically valueless money used as money because of government decree
    It gets worse, because the USD is the world's reserve currency and financially/economically the USA is in such a poor condition, if the USD collapses, the world fiat currency system goes down the toilet. So US economic policy/problems like the
    debt (June 28, 2013, total public debt of $16.738 trillion which is ~100% of their GDP.) scares me. I really don't want to live through a depression/hyperinflation
    Last edited by a moderator: Mar 11, 2014
  21. ThanosPAS

    ThanosPAS TS Enthusiast Posts: 46   +12

    No, not rude. Just trying to draw attention.

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