BitCoin still exists, BitCoin site ops still hilariously inept

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The Something Awful Forums > Main > General Bullshit > BitCoin still exists, BitCoin site ops still hilariously inept

spengler: Aug 25, 2004; treason trapping animal hide
in the vision of paradise

http://arstechnica.com/uncategorize...7000-plundered/

quote:

More than $87,000 worth of the virtual currency known as Bitcoin was stolen after online bandits penetrated servers belonging to Bitcoinica, prompting its operators to temporarily shutter the trading platform to contain the damage.

Friday's theft came after hackers accessed Bitcoinica's production servers and depleted its online wallet of 18,547 BTC, as individual Bitcoin units are called, company officials said in a blog post published on Friday. It said the heist affected only a small fraction of Bitcoinica's overall bitcoin deposits and that all withdrawal requests will be honored once the platform reopens.

It was at least the second time in 10 weeks Bitcoinica has been stung by a computer intrusion that has cost it dearly. In early March, a security lapse at cloud services provider Linode allowed hackers to make off with about $210,000 worth of bitcoin after they gained unauthorized access to bitcoin wallets stored by Bitcoinica and seven other customers. Last June, an anonymous person claimed to have lost $500,000 worth of bitcoin to online thieves, but the claims were never independently verified.

"It is with much regret that we write to inform our users of a recent security breach at Bitcoinica," Friday's blog post stated. "The overwhelming majority of our bitcoin deposits were not stolen. The thief stole from us not you. All withdrawal requests will be honored."

The post went on to warn that a database storing user names, e-mail addresses, and account histories was also accessed, and it also suggested cryptographically hashed passwords may also have been compromised. It advised customers who reused their Bitcoinica passwords on other sites to change them. Documents used to legally verify users' identities are stored on separate servers at a separate data center with a different encryption regimen....

https://bitcointalk.org/index.php?t...21159#msg921159

quote:

From what I gather, there are no backups of the database. Only partial records for accounting which is being used to extrapolate balances. I'm not sure of the exact details, but I think they need a full view of the claims before payouts begin (like a big jigsaw puzzle) to properly cross match records. Hopefully someone better informed will post more details.
...
Bitcoinica took us on to help secure them.

We decided it was bad practice to make sudden disruptive changes overnight to a production system. Instead the theory was a very gradual replacing of the system while observing changes. Bitcoinica was already very fragile. I still think that was a good decision.

What an awesome 'security contractor', to stand by their idiotic decision after losing a production database with [NON FIAT] financial data on it. I'd assume a competent group would have taken one look at the setup, screamed holy hell, and taken it all offline until it was actually secure.

quote:

At last. All is explained.

Passwords are gone, so they are no use.
80% of BTC funds are (I assume, please confirm) still under Bitcoinica's control.
100% of USD funds are (I assume, please confirm) still under Bitcoinica's control.
The problem is you just have a big pool of money and no way of knowing who owns what.
That entirely explains the crappy claims page.
That entirely explains the delay in processing claims.
For we customers: this isn't perfect news, obviously, but it does at least give us some hope that we haven't lost everything.
If the investor really is doing the decent thing and funding the 20% BTC losses out of their own pocket, then we should all appreciate that and let that be an end to all the legal shouting.
Certainly no amount of shouting is going to recreate a database that doesn't exist.

I can't hear you with my fingers in my ears.

In other recent BitCoin news:
http://www.zdnet.com.au/abcs-bitcoi...s-339338279.htm

quote:

The Australian Broadcasting Corporation (ABC) looked set to become a haven for Bitcoin virtual currency mining last year, after a so-called "miner" placed a piece of code in the production environment, which could have potentially netted to thousands of dollars.

http://www.webwire.com/ViewPressRel.asp?aId=156681

quote:

FarmVilleFeed.com Partners with Bitcoin Advertising Service

WEBWIRE � Friday, May 18, 2012
San Francisco, CA - The leading FarmVille news site, FarmVilleFeed.com has partnered with BitcoinAdvertising.com to join the charge of leading online services across the web accepting Bitcoin payments for banner ads on their website.

Using the text-only ads popularized by services such as Google Adsense, BitcoinAdvertising.com only accepts payment in the Bitcoin digital currency

According to the CEO of FarmVilleFeed.com Dan Farthing: �I recently became aware of a new method of accepting online payments called Bitcoin. Bitcoin is an electronic currency that can be moved instantly to anyone, anywhere, for less than a penny per transaction, regardless of the amount transacted. In other words, by running advertisements where the advertisers are willing to pay me with Bitcoin, I will be able to save on fees. As a result, I�m now giving priority to Bitcoin-funded ads.�

Fake money and news about fake sheep, together at last.

Most recent data from MtGOX:
Last price:$5.11001 High:$5.14900 Low:$5.10600 Volume:20949 BTC

The volume is down significantly from the bubble, but that's still more than $100K a day that they are taking 3% of.

If you want even more BitCoin news, you're in luck, because BitCoin Magazine has finally gone to print

quote:

Bittalk Media Ltd, the Publisher of Bitcoin Magazine, is Pleased to Announce Release of the Very First Issue of Bitcoin Magazine.

Chesterfield, Derbyshire, UK (PRWEB) May 02, 2012

BitTalk Media sends to print the very first issue of Bitcoin Magazine, magazine dedicated to providing a neutral and balanced presentation of the Bitcoin world and beyond it, echoing the voice of Bitcoin, other crypto-currencies and peer to peer technology enthusiasts worldwide. Bitcoin Magazine is an industry standard 64 page glossy magazine, with an initial 5,000 issue run.

Subscriptions, single copies and bulk shipments can be ordered online at subscribe.bitcoinmagazine.net. Naturally, Bitcoin is one of the available payment options. US subscribers should receive their first copy of Bitcoin Magazine by the 16th of May 2012. Delivery time may vary for international subscribers.

Pretty sure Guy Fawkes isn't talking about BTC in that picture, but what do I know, I get paid in fiat dollars.

edit:

Revener posted:

I still have no clue what a Bitcoin is.

really? I almost did a "this is what BitCoin" section is in the OP, but I figured we were well past the point where that was necessary.

An analogy is -- you have a set of bingo balls, and you pull one ball out at a time and write the result down on a piece of paper, making longer and longer numbers. You have a friend look at the number when it gets to a certain length, and based on what it looks like tells you that it's either "bad", in which case you throw it out, or "good" in which case you retain it because it's now worth five dollars.

If you digitize this whole process and put in lots of Ron Paul references, you've basically got bitcoin. But, don't just take my word for it:
http://www.youtube.com/watch?v=Um63OQz3bjo

Mr Luxury Yacht posted:

I'm not sure anything will ever top the last thread.

Oh, I wouldn't even try.

spengler fucked around with this message at May 26, 2012 around 15:31

# ? May 26, 2012 15:21

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# ? May 19, 2013 14:09

Revener: Aug 25, 2007; I handed him the money and the bomb, but he was a real professional; his only question was who.

I still have no clue what a Bitcoin is.

# ? May 26, 2012 15:26

Mr Luxury Yacht: Apr 16, 2012

I'm not sure anything will ever top the last thread. It was pure insanity distilled down into thread form.

Also, motherfucking CosbyCoins.

# ? May 26, 2012 15:29

d3c0y2: Sep 29, 2009

Mr Luxury Yacht posted:

I'm not sure anything will ever top the last thread. It was pure insanity distilled down into thread form.

Also, motherfucking CosbyCoins.

Never forget 9/9/11

# ? May 26, 2012 15:30

Dubar: Sep 12, 2002; Earth Q'Wake

Revener posted:

I still have no clue what a Bitcoin is.

its value is roughly equivalent to a combination of the coins that mario picks up and the rings that sonic collects

# ? May 26, 2012 15:31

Filthy Haiku: Oct 22, 2010

Dubar posted:

its value is roughly equivalent to a combination of the coins that mario picks up and the rings that sonic collects

Now multiply by zero and you have the value of a bitcoin.

# ? May 26, 2012 15:32

tetsuo: May 12, 2001; I am a shaman, magician.

reminder that this happened and people who society trusts to drive, own land and use sharp objects still listen to this mans every word http://falkvinge.net/2011/05/29/why...s-into-bitcoin/

# ? May 26, 2012 15:32

Good Citizen: Aug 12, 2008; Mew Mew Mew Mew
Mew Mew Mew

Revener posted:

I still have no clue what a Bitcoin is.

# ? May 26, 2012 15:32

Shimrra Jamaane: Aug 9, 2007; Remind me to work out until I also am buff and have to keep a pillow in front of my okay I'll be honest this is like the 50th custom title I've done tonight and I'm just phoning it in now.

Bitcoin is still the funniest thing to ever happen ever.

# ? May 26, 2012 15:33

Meliv: Nov 1, 2008

Are the CosbyCoins still safe?

# ? May 26, 2012 15:44

etalian: Mar 20, 2006

Good Citizen posted:

I love this picture especially how the Bill somehow found a picture of happy for once Ron Paul and put it next to quote about the importance of having a sound trusted currency.

# ? May 26, 2012 15:49

Pitnicker: Apr 6, 2004

BitCoin is like being a little kid with an ant farm one summer and watching the little society of ants slowly break down and die. Only instead of ants it's full of libertarians.

# ? May 26, 2012 15:52

Cthulu Carl: Apr 16, 2006; Your words are as empty as your cereal bowl. I am the Vanguard of your Hanzo steel's destruction. This exchange is over...

Meliv posted:

Are the CosbyCoins still safe?

Cosbycoins are inherently sound because they feed off the weaker currencies:

# ? May 26, 2012 16:14

Ashenai: Oct 5, 2005; You taught me language;
and my profit on't
Is, I know how to curse.

Yeah I'm pretty sure every single one of these "hacks" is one of the site admins deciding to cash out and teach internet libertarians a valuable lesson about unregulated free-market economics.

# ? May 26, 2012 16:21

JossiRossi: Jul 28, 2008; Alone in space with Bears, Cats, Robots, Lizards, Energy Entities, and some Love.

How can we sit back and claim that Bitcoin is useless?

Did we all forget Waffle Hound, the man behind the (only) legitimate Bitcoin enterprise? Top gems for top coin.

# ? May 26, 2012 16:24

Sears Poncho: Oct 8, 2011

Dubar posted:

its value is roughly equivalent to a combination of the coins that mario picks up and the rings that sonic collects

brb, getting some extra lives.

# ? May 26, 2012 16:26

Combat Pretzel: Jun 23, 2004; No, seriously... what kurds?!

The concept is interesting, but holy poo poo, is there even any commercial service beyond some shady Viagra knock-off distributor, that actually takes Bitcoins as currency?! What's the point in all this? There has to be one, because novelty alone doesn't translate into a value, even if it's just 5 dollar.

# ? May 26, 2012 16:26

Ashenai: Oct 5, 2005; You taught me language;
and my profit on't
Is, I know how to curse.

Combat Pretzel posted:

The concept is interesting, but holy poo poo, is there even any commercial service beyond some shady Viagra knock-off distributor, that actually takes Bitcoins as currency?! What's the point in all this? There has to be one, because novelty alone doesn't translate into a value, even if it's just 5 dollar.

I seem to remember you can buy Slim Jims with them.

# ? May 26, 2012 16:28

Criminally stylish: Dec 12, 2010; It's totally fine if you want to ride my disco-stick.

This is like watching someone trying to build a giant tower out of cheese, while ferociously arguing it in an engineering perspective as a sound construction material while it keeps crumbling and getting eaten by rats.

# ? May 26, 2012 16:29

betaraywil: Dec 30, 2006; Gather the wind
Though the wind won't help you fly at all

How do you steal a bitcoin though? It's just a really long integer right? So wouldn't the bank still know what the integer is? And for that matter how do you trade them? I know fiat currency is "just a number on a ledger" but this is just a number. How do you prove or exchange ownership of an integer? Is it a high level crypto thing?

I might not be getting the core concept, so no one feel obligated to go into any depth, but they seem like too stupid an idea for me to be understanding it correctly.

# ? May 26, 2012 16:30

The Mad Archivist: Sep 4, 2008; A Chronicler of the Crazed

I remember reading the first GBS thread through. A wild roller coaster of hilarity that delivered more value than Bitcoin ever has or ever will.

And the first reply still holds true today: "Autism Kroners."

# ? May 26, 2012 16:30

Powered Descent: Jul 13, 2008; We haven't had that spirit here since 1969.

Bitcoins... wow, 2011 flashback. Hmm... I wonder if they're still going up up UP like Bruce promised.

Well. Stagnant price and swiftly-declining trade volume. That'll show those unstable fiat currencies what's what.

Source of chart. (Had to try three different sites I remembered from last year before I found one that's still operating.)

# ? May 26, 2012 16:34

Ashenai: Oct 5, 2005; You taught me language;
and my profit on't
Is, I know how to curse.

betaraywil posted:

How do you steal a bitcoin though? It's just a really long integer right? So wouldn't the bank still know what the integer is? And for that matter how do you trade them? I know fiat currency is "just a number on a ledger" but this is just a number. How do you prove or exchange ownership of an integer? Is it a high level crypto thing?

I might not be getting the core concept, so no one feel obligated to go into any depth, but they seem like too stupid an idea for me to be understanding it correctly.

It's a crypto thing, yes. Essentially, each bitcoin is an integer, but when you transfer them to another person, the integer changes, and only the new owner will know what it is. It's a lot more complex than that, but that's the core of it.

# ? May 26, 2012 16:36

Yaos: Feb 22, 2003; She is a cat of significant gravy.

betaraywil posted:

How do you steal a bitcoin though? It's just a really long integer right? So wouldn't the bank still know what the integer is? And for that matter how do you trade them? I know fiat currency is "just a number on a ledger" but this is just a number. How do you prove or exchange ownership of an integer? Is it a high level crypto thing?

I might not be getting the core concept, so no one feel obligated to go into any depth, but they seem like too stupid an idea for me to be understanding it correctly.

You just don't understand how real value currency works. Unlike the illegal currency generation of the United Satan of America FED, Bitcoin allows users to generate currency out of their parent's electricity bill.

# ? May 26, 2012 16:37

Shimrra Jamaane: Aug 9, 2007; Remind me to work out until I also am buff and have to keep a pillow in front of my okay I'll be honest this is like the 50th custom title I've done tonight and I'm just phoning it in now.

Who has the Bitcoin strawberry photos?

# ? May 26, 2012 16:41

Epic Fear Job: Jun 2, 2007; my other car is a porsche on the moon

spengler posted:

An analogy is -- you have a set of bingo balls, and you pull one ball out at a time and write the result down on a piece of paper, making longer and longer numbers. You have a friend look at the number when it gets to a certain length, and based on what it looks like tells you that it's either "bad", in which case you throw it out, or "good" in which case you retain it because it's now worth five dollars.

Time works the same way.

# ? May 26, 2012 16:45

Shifty Pony: Dec 28, 2004; Up ta somethin'

Cthulu Carl posted:

Cosbycoins are inherently sound because they feed off the weaker currencies:

They also have the added benefit of being convertible at any time into delicious jello puddin. As long as people have room for jello Cosbycoin will be sound.

# ? May 26, 2012 16:45

betaraywil: Dec 30, 2006; Gather the wind
Though the wind won't help you fly at all

Thanks. That actually sounds kind of cool, in an absurdly complicated math kind of way. Is it just so complicated yet elegant that the bitcoin/integer is identifiable even after it's mutated, or do they upload the new number to some authentication database in Ron Paul's floating fortress?

Also: It seems like if the individual coins have some sort of persistent individual identity, it would be possible (if not simple) to revert them in the case of theft. Like that sounds like a main advantage over other currencies/commodities. Why can't they do that? Or is it just that there's no governing body that would be able to do that?

(Again, feel free to ignore me; I'm curious, but I feel like I'm so ignorant about this that I'm probably not even asking coherent questions.)

# ? May 26, 2012 16:47

Yaos: Feb 22, 2003; She is a cat of significant gravy.

Bitcoin transactions can not be reverted, even if somebody steals your wallet and spends it all on Slim Jims you have no way to recover your BitCoins.

Don't forget about the physical effects of BitCoin.

# ? May 26, 2012 16:48

Good Citizen: Aug 12, 2008; Mew Mew Mew Mew
Mew Mew Mew

Shimrra Jamaane posted:

Who has the Bitcoin strawberry photos?

# ? May 26, 2012 16:48

Talkie Toaster: Jan 23, 2006; May contain carcinogens

betaraywil posted:

How do you steal a bitcoin though? It's just a really long integer right? So wouldn't the bank still know what the integer is? And for that matter how do you trade them? I know fiat currency is "just a number on a ledger" but this is just a number. How do you prove or exchange ownership of an integer? Is it a high level crypto thing?

IIRC every bitcoin processor/user has a record of how many bitcoins each other user has, and all the transactions. When you want to transfer one, you send out a cryptogram to this network, and once enough processors have solved it and agree you've got a valid key and enough money then the transfer goes through and they update their records- the idea being if you wanted to steal someone's money, you'd have to hack over 50% of the network to get the majority to agree the transaction was valid, or those computers agreeing to the invalid trades would eventually get booted off the network as they're claiming impossible transfers occurred.

This digital equivalent to keeping money under the bed is slow and inconvenient, so people store and transfer money via central bitcoin banks which provide a single place to hack and remove the only possible benefit from using the currency.

# ? May 26, 2012 16:56

readingatwork: Jan 8, 2009; Probably neither reading nor working.

How does one actually steal a bitcoin anyway? And how exactly would one exactly go about laundering several hundred thousand dollars worth of the stuff into real money? This poo poo is as fascinating as it is insane.

# ? May 26, 2012 16:57

Powered Descent: Jul 13, 2008; We haven't had that spirit here since 1969.

Ashenai posted:

It's a crypto thing, yes. Essentially, each bitcoin is an integer, but when you transfer them to another person, the integer changes, and only the new owner will know what it is. It's a lot more complex than that, but that's the core of it.

Yup. From what I've read about the underlying structure, there's actually some pretty cool cryptographic math involved. And if I recall correctly, there hasn't actually been a successful attack against bitcoin itself -- the hilarity comes from people learning the hard way that "anonymous, irreversible transactions with NO higher authority" works for thieves too.

Well, that and the fact that these people are happily buying and selling shares of absolutely nothing for real money.

# ? May 26, 2012 16:57

oscarthewilde: May 16, 2012

Yaos posted:

Bitcoin transactions can not be reverted, even if somebody steals your wallet and spends it all on Slim Jims you have no way to recover your BitCoins.

Don't forget about the physical effects of BitCoin.

Isn't that a really bad investment? The sheer energy cost is probably higher than the bitcoins he earned.

# ? May 26, 2012 17:03

taupoke: Apr 26, 2008; HOLY SHIT I'M TRIPPING BALLS

Why is it that people who espouse the free market system always have no idea how a free market actually works?

# ? May 26, 2012 17:04

Ashenai: Oct 5, 2005; You taught me language;
and my profit on't
Is, I know how to curse.

betaraywil posted:

Thanks. That actually sounds kind of cool, in an absurdly complicated math kind of way. Is it just so complicated yet elegant that the bitcoin/integer is identifiable even after it's mutated, or do they upload the new number to some authentication database in Ron Paul's floating fortress?

There is a public database (called the block chain) that has the complete transaction history of every bitcoin. Everyone who uses bitcoins has a copy of it on their computer.

quote:

Also: It seems like if the individual coins have some sort of persistent individual identity, it would be possible (if not simple) to revert them in the case of theft. Like that sounds like a main advantage over other currencies/commodities. Why can't they do that? Or is it just that there's no governing body that would be able to do that?

It's not possible to single out a single transaction to revert in the block chain without loving up its cryptographic integrity. You could theoretically revert the entire block chain to a previous date (invalidating all transactions since then), but since it's a peer-to-peer database, you'd need consensus, like for every bitcoin user to go "yeah, everything that happened since May 4 was bullshit." That's just not going to happen.

quote:

(Again, feel free to ignore me; I'm curious, but I feel like I'm so ignorant about this that I'm probably not even asking coherent questions.)

No, they're good questions. The fundamental concept and technical execution of bitcoins is actually quite solid, it's just that, well, internet libertarians.

# ? May 26, 2012 17:07