$300 Million In Crypto Currency Lost FOREVER Thanks To A Bug In A Digital Wallet

SHTFplan.com ^ | November 8th, 2017 | Mac Slavo

[1_Inch_Group]

Unlike most cryptocurrency hacks, however, the money wasn’t deliberately taken: it was effectively destroyed by accident. According to the Daily Mail, the lost money was in the form of Ether, the tradable currency that fuels the Ethereum distributed app platform, and was kept in digital multi-signature wallets built by a developer called Parity. These wallets require more than one user to enter their key before funds can be transferred.

On Tuesday, Parity revealed that, while fixing a bug that let hackers steal $32m out of few multi-signature wallets, it had inadvertently left the second flaw in its systems that allowed one user to become the sole owner of every single multi-signature wallet.

[BookaT]

Freerepublic could cancel their quarterly fund drives if they offered to let us(members) mine for them while on FR.

I don’t know if they could get $88k per quarter but it could help.

[Vermont Lt]

I get the impression you really just want me to type for a few minutes so you can say, “But what happens when the power goes out?”

Or, “But I like gold better.”

If you really want to know, PM me and I will write you a nice explanation. But, there are not a lot of open minds around here.

[RitchieAprile]

but there are lots of yayhoos..

[seowulf]

It seems to me that Bitcoin only has value because people decided to believe that it has value.

I'm still holding beany babies an cabbage patch dolls. They're due for a rebound any time now.

[DannyTN]

I hate when $300 million of my Crypto currency dissappears.

[Garth Tater]

"But the vast majority of the world does not use Bitcoin so why should it have value?"

It has value because it has uses. I wouldn't put too much of my capital into crypto-currencies though as they will be outlawed soon when they start cutting into the profits being made by the issuers of the more traditional, government run, debt-based currencies.

[stig]

How does this activity Warrant them getting more Bitcoin, except that everyone decided that this is how it should be? But the vast majority of the world does not use Bitcoin so why should it have value?

Why does digging in a stream and finding a certain yellowish material worth anything?

[Dilbert San Diego]

So then, is the implication that any medium of exchange or any store of value is valuable simply because everyone has agreed this is how it will be?

[NorthMountain]

It seems to me that Bitcoin only has value because people decided to believe that it has value.

Federal Reserve Notes have value only because the government tells you they do.

For that matter, gold only has value because people agreed that it does.

Bitcoin is worthless when the power goes down.

FRN are worthless when government orders too many of them into existence.

Gold isn't perfect. (Under some circumstances, it's utterly worthless. You can't eat it.) It has, at least, the inherent virtues or rarity and permanence.

[Former Proud Canadian]

"...Bitcoin only has value because people decided to believe that it has value."

Yup, just like those greenbacks in your wallet.

[SunkenCiv]

Oh no. Now the loser won't be able to shop for crypto-groceries. Thanks 1_Inch_Group.

[stig]

So then, is the implication that any medium of exchange or any store of value is valuable simply because everyone has agreed this is how it will be?

For bitcoin there is a base intrinsic value because it is used as a digital currency. For example if I pay for some widget online with bitcoin. I had to go and find a bitcoin and pay for it. I then assign it to the merchant. The merchant may sell the bitcoin immediately and convert it to cash. Because bitcoin can be used in this way it creates a base level of demand for the crypto-currency. Since the hash values that represent the bitcoin are finite and becoming harder to find. The hash-keys that are in use may be fractionally spent, allowing a single bitcoin to have multiple owners that own a share of bit coin. This also drives the price up because as each person's risk is over a smaller portion of a bitcoin the less likely they are going to rush to sell their stake.

Because there is a market established where anybody can buy and sell the product demand increases as people speculate, just like what happens in the oil market. I'm not saying that Bitcoin is a safe investment. But if you had $7k of risk capital on hand I wouldn't fault you for buying a Bitcoin.

Many people are fearful of bitcoin because you need an electronic wallet on your computer. But you can buy a specialized thumb drive (hardware wallet) that will store your bitcoin offline until you are ready to use them. This means that as long as they are not plugged into your computer they are safe from electronic attacks.

[conservatism_IS_compassion]

Bitcoin ^{any form of money} only has value because people decided to believe that it has value.

If the storeowner decides that, he advertises his wares for “only $X minus 1¢”—which is another way of saying that "$1 is worth 1/X of” whatever good or service the advertiser has on offer.

So every advertisement of the dollar-denominated price of any good or service is also an advertisement of the value of the dollar.

Oh, and BTW the government does the same thing—it offers not to arrest you if you do pay it enough tax dollars . . .