Posted on 02/13/2014 7:20:59 PM PST by 2ndDivisionVet
The same bug that has plagued several of the biggest players in the Bitcoin economy may have just bitten the Silk Road.
On Thursday, one of the recently-reincarnated drug-selling black market site’s administrators posted a long announcement to the Silk Road 2.0 forums admitting that the site had been hacked by one of its sellers, and its reserve of Bitcoins belonging to both the users and the site itself stolen. The admin, who goes by the name “Defcon,” blamed the same “transaction malleability” bug in the Bitcoin protocol that led to several of the cryptocurrency’s exchanges halting withdrawals in the previous week.
“I am sweating as I write this… I must utter words all too familiar to this scarred community: We have been hacked,” Defcon wrote. “Our initial investigations indicate that a vendor exploited a recently discovered vulnerability in the Bitcoin protocol known as “transaction malleability” to repeatedly withdraw coins from our system until it was completely empty.”(continued)
(Excerpt) Read more at forbes.com ...
Our currency is not backed by any metal, much less gold. And the Bundesrepublik Deutschland’s gold doesn’t belong to the United States, it was being stored for safekeeping due to the cold war.
Then stay away from it. It is not all that complicated.
The FR doesn’t like competition in the fiat money business. Fiat money backed by nothing but the full faith and credit of a Federal Guvmint run by a liberal slug bureaucracy. And governed by the Obama Junta
What Really Backs the U.S. Dollar? ...
Jun 28, 2009 - This is where you get the saying that U.S. dollars are backed by the “full faith and credit” of the U.S. government. In other words, Nixon implied ...
I googled it, too. I still don’t get it. It sounds like something for me to stay away from..
That’s some serious coin.
Yep, one even committed "suicide" by nail gun. What's the statistics on that? Most are just flying off of buildings though...
Yep, almost three million in US fiat.
No accident, obviously a planned assault.
I intend to stay away from it.
I'll bet you all the bitcoin's in China the NSA was absolutely involved in it. Can't have the USA's faux currency being undermined you know!
Someone like Whitfield Diffie.
There ain't many of them and amateurs create all sorts of havoc when they fancy themselves able to work with crypto.
If you live in California and would like to meet Whitfield then just attend the lectures at the Computer History Museum...he nearly always attends.
didn’t this happen a month ago or something?
That’s what the Germans thought until they tried to get it back. Or at least look at it to make sure it was there.
The good faith of the Occupy Wall Street types and hackers who came up with the idea.
You see, money is evil. It's a tool of evil banks and governments, designed to deprive you of your just reward for existing. Some very forward thinking people (you may have seen some of them on the TV during those Occupy events) have the answer for you. Bitcoins. Drop out and tune in to Bitcoins.
Unlike cumbersome dollars, bitcoins are easy to use. All you need is a secure computer, internet connection, your bitlocker software, a good understanding of computer operation and an understanding of modern cryptography software. You also need to check the bitcoin security forums at least twice daily for new vulnerabilities and apply the appropriate patches if available (of go offline until the patch is issued), and execute a robust backup regimen since loss of your data = loss of your wealth.
It's pretty safe too. Sure, now and then one of the "insiders" like the one in this story will abscond with all your money, but that's just another form of the exalted wealth distribution concept, so it's all good.
So remember, the dollar is evil. Just because it appears to work when you want it to, it's really deceptive. When you pay your dinner bill, the dollars you give the restaurant are backed by nothing but the US government and the country... that's a pretty weak promise. With Bitcoins, you have the "coolness" of it on your side, so who needs monetary backing?
Hey, don’t you just hate it when a software bug crashes your money?
Today was about ignoring people and Deep Coding. Executive summary: protocol is fine. Reference wallet implementation is getting fixed— Gavin Andresen (@gavinandresen) February 14, 2014
Exponentially growing computer power will destroy bit coin. In time someone with enough computer horse power will hack/clone bit coins rendering them worthless.
The Quantum Quest for a Revolutionary Computer (Jeff Bezo’s “Infinity Machine”)
http://www.freerepublic.com/focus/f-news/3121505/posts
Constitution says the States can’t print paper money, but can coin money. Once BTC processing/mining is as strong as a Walmart celery purchase, States can StateCoin, using real assets as backup, maybe not just gold, but agriculture on State lands, oil leases, any resource available to back StateCoin.
Bye bye FED.
All of the Bitcoins were stolen in a hack?
I hope that Defcon doesn’t own any guns - it sounds like he is the type to lose them in a boating accident.
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