Bitcoin Forum

I am a former supporter of bitcoin but I hate to say that bitcoin will not reach mind boggling prices. There is one important reason for this:

HACKING

1. As the price goes up, BitCoin will be more lucrative to hack. This fear of losing funds will keep the price down. And even the most secure of exchanges have been hacked like CoinBase!!! That’s right. Don’t believe me? Do an internet search on coinbase hacked.

2. All exchanges are easily hacked and not secure enough. This is another contributing factor that will hold the price of BitCoin down. We’ve seen wallets get emptied for an entire exchange. But its not just that, even individual accounts have been hacked if they could not hack the entire exchange.

3. BitCoin’s convenience is its weakness. Bitcoins are available in electronic space or Cold storage. So its much more susceptible to have the coins getting stolen. With a bank, its much more difficult to do this. I can go to the bank and make a deposit and my account is credited for that deposit. If a hacker gets my user name and password, and tries to transfer those funds, I can catch it and deny the transfer. Everything can be traced. With Bitcoin no one is even willing to prosecute hackers that steal coins. And how often does a hacker gain control of your bank account as opposed to a bitcoin exchange account? How often does a hacker empty the funds from a bank account compared to a bitcoin account? Also here in the USA, funds are FDIC insured for up to $250,000.

Also consider computer crashes and losing the paper that had all your coins on it.

4. Lets just pretend that BTC does reach 100,000. Given all the risks of how easy it is to lose your coins, why would someone pay that price? Why not hold a stock that is worth 100,000 dollars? That is much more secure than a bitcoin.

I learned all this the hardway when my cryptsy.com account was hacked. I only lost 3.11 BitCoins which was basically all my profit plus 800 dollars net loss. Its not a lot but enough for me to say I am going to stay away. None of these exchanges are secure enough like a banking website. I will move my coins away from coinbase into cold storage and hold until the price gets pumped up enough for me to sell off and break even.

BitCoin was  a promising concept but until you see your wallet get emptied, you see all the flaws. BitCoin didn’t ruin itself, the hackers did.

I don't Bitcoin will ever reach that amount that would be insane but sure as time goes on Bitcoin is only going to become more secure and more security proffesionals will be involved in Bitcoin.

How is this any different from "hacking" that goes on with every other financial system?

For example, the 40 million dollar credit card heist last month from Target and Neiman Marcus.

Or the other 9 billion hacks that have gone on, unannounced because they aren't "Bitcoin"?

Someone hacked into my store and stole credit card numbers 6 months ago.   You didn't see that all over the news.  Because I'm not Bitcoin.

-B-

True, but with credit cards, you can discontinue them and get new ones issued and questionable charges can be refunded. BitCoin is a one way street.

Someone could transfer my bank funds to another bank but if I find out in a reasonable timely manner, I can report that to the bank and the bank would investigate IP addresses and the cops would be involved and it would be much more serious of a situation for the hacker.

Bitcoin cultist becomes fiat cultist. It is only natural when one's beliefs are based on a mere trend.

Bitcoin has been hacked, scammed, blah blah for a long time now, and it did not matter in the end. Of course it inhibits Bitcoin, but those are not insurmountable challenges.

Bitcoin will never reach $1 because of one reason: Hacking! Nobody will turn thousands of dollars into thousands of bitcoin because they can be stolen easily. You would have to be an idiot to even consider it.

These security issues will be addressed by the markets and exchanges that will be popping up in the wake of this Gox mess, as well as regulation that will inevitably come down the pipeline.

We know these new exchanges are coming, and funded by real money.

Amateur hour is coming to an end, and the price is falling as this shakes out and people are geeking hard.  Really, this was inevitable.  These guys were never prepare for this.  How could they have been?  The economics of 1-2 years ago do not allow for the raising of several million to set up a proper exchange, so they went with what they had.

Price will rise again as exactly these questions of security and liquidity of exchanges are put to rest as these more organized players come up to speed, some regulation comes into play and more people are comfortable trading these markets and start trading.  That happens this year or early next.

I am expecting the recovery in price over the next year or so as these larger, more organized and experienced players get their systems up and running and other factors drive growth in the BTC marketplace, although the next few months look like shit, price-wise, as it will take a change in fundamentals as indicated above to drive it back up substantially.

I don't think it hits 100,000 either, but back over 1,000 by year end is a better bet than 200 at that time, based on this expectation for game changing players getting involved, although this is, of course, just one guy's opinion.

I'm pretty sure it will reach over 100,000 eventually.
I've lost more than you (+200 BTC over 2 years) but i'm not here to get rich.
It might be less in $/€ though...
I will always believe in bitcoins for political reasons.
Bitcoin gave me new hope after the fucked up bank crisis since 2008.
No matter how much i loose, for me it is more than money.

I am not going to argue with your motivation to step out but i think you're thinking too short-termed.
And as a fellow idiot who has lost coins i can tell it made me more aware and responsible of my digital footprint.
I admit i understand how and why i got scammed/hacked.
And thus i have become a more responsible person.
You are a responsible person if you make every mistake once, but only once.
So look into your own heart before you blame something else.
Maybe you can still close your losses on an optimistic note...

Bitcoin will never be $100,000?

Oh...no, no no no...help...plz.....



HELP!

TOP @ $99,999.99.

LOL. I can't even imagine how I would go about talking about the virtues of fiat currency.

"These smart fellows who sit on the board of the Federal Reserve control everything about it, isn't that wonderful?"

Lol?

Oh no, no no no no ha ha ha hel l l p p


HELP!

1. stop downloading malware infected stuff
2. how does it even have anything to do with how much one bitcoin is worth? you don't store 200 bitcoins at a third party site now and you won't store one whole bitcoin at a third party site if it reaches 100,000 usd...

Bitcoini Is malware?


HELP!

Here, let me try, because fiat currency actually is wonderful when you think about it. It is remarkably stable over the short to mid term; you will always have a sense of knowing how much you can buy with a given amount of money. So, it is a fantastic unit of account. Fiat money can be completely anonymous if you want, and it is reasonably easy to store and secure. You can have it in many other forms as well, and some of them are even instant and offer you insurance and consumer protection. If you store your money in a bank, at least in the US and the eurozone it will be insured by the government! Plus, banks have a great degree of physical protection so you could even store cash with them in a safe deposit box. There are brands of fiat money like the US Dollar and the Euro that are traded worldwide and you can buy almost ANYTHING with them, at any time. Definitely the best medium of exchange on earth! You can convert them into stores of values if you don't want to spend anytime soon.

Paypal could get hacked too, but nobody has been able to do that yet.  As BTC becomes more valuable, exchanges will put more $$$ down on security, making them harder and harder to hack.  The occasional one will still happen, but that's not exclusive to BTC, that's just people wanting money. 

OP, I think "Bitcoin banks" will emerge in the future to handle this security-related aspect of Bitcoin. If you think about it, cash money is also very vulnerable to being stolen which is why most people put it in the bank in the first place. One of the services that a bank provides is security and there is always a need to secure money.

anyone who keeps more than 5% of their bitcoins sitting in an exchange rather than secured in their own possession deserves to lose them to exchange hackings.

"ever again"?

When did Bitcoin hit $100,000?  :D :D :D

Why is a percentage associated with a principal of losing something? Seems irrelevant to put a % on your concept here.

it is called assclown logic.. have you not swam in the deep end of it during your time here?

The safety can be improved, take an example of internet banking, it's safe : you use TAN codes ( prime numbers & hashing algorithm) for transactions. The same system is possible for bitcoin.

Nobody deserves to have their money stolen, period. OP makes a good point that after five years, theft and hacking still remains a huge problem in this community. Perhaps that's simply the effect of an unregulated environment, but if so, why would the general public ever want to become involved? They won't, and the price will never go up to the astronomical amounts that many of the bitcoin envangelists claim.

It is called failed logic in my view.

I've swam in the deep end of calling out people's BS on this forum....will continue to do it as long as I am here.

If we assume all 21 million bitcoins are in circulation, and a bitcoin is worth $100,000

The totality of bitcoins are worth $2,100,000,000,000. That seems way too high a number to be in circulation.

For comparison the total USD currently in circulation is only $1,240,000,000. That makes the amount of bitcoin in circulation almost 1700x that of USD.

I know lots of bitcoin is lost, but even if we assume only half that amount of bitcoin is recoverable, the number is still outstanding.

You forgot some zeroes.

http://www.federalreserve.gov/faqs/currency_12773.htm

Oops. 1,240,000,000,000. Seems more reasonable.

If by short you mean couple of hours and midterm is a day.
Just ask Argentinians, Russians, former Yugoslavians, Zimbabweans and the list goes on how stable it is.

https://www.munknee.com/21-countries-have-experienced-hyperinflation-in-last-25-years-is-the-u-s-next/

I remember my parents exchanging salaries immediately after receiving them for Deutschmarks in late 1980's because our currency was so stable that it wasn't insignificant whether you received your paycheck at 9.00am or 11.00am.

Germans in Weimar Republic used to order a meal that took shorter time to cook in a restaurant because if they ordered a meal that took longer to cook they carried a risk of running out of cash by the time the dinner was cooked due to rising prices.

The fact that you as American haven't experienced hyperinflation makes you blind to it. Don't worry you will. It's a mathematical certainty.


So is anything else, what's the difference in having a balance sheet read +100 US$, +100 BTC, +100 Khs or +100 bottles of grog?


Yeah until you don't raise red flags for dealing with exorbitant amounts of money like depositing 5000$ in a bank and having to file a bunch of papers or having to declare that you carry mind-boggling 10.000 Euros across the border.


Not true, physical storage of money is expensive, moving it around is expensive. Way more then moving or storing cryptos.


I'll give you that.


I would also gladly store your bitcoins if in case of me losing them I had the options to 1. create new bitcoins, or 2. steal them from some uninvolved, undeserving party.


If you traveled around then you know that buying anything, anywhere comes with a quite steep fee.


You shot yourself in the foot. If you treat money as a store of value there should be no need to convert US$ or EUR 'into store of value'. The very fact that it's not a store of value means it's lousy as a money.
A person in 1813 had a luxury of burying a gold bar in the backyard and unearthing it 100 years later and still buy roughly the same stuff.
We live in a world where burying something like a dollar in 1913 would be dug out as 3 cents in 2013.

Agree w OP.  The honeymoon is over.  We are seeing what she truly looks like in the full light of day and we are finally noticing all the warts and scars.  We didn't want to see it at first bc we were in the romantic phase of bitcoin (who here doesn't love the promise and idea of bitcoin?). 
Think about the fact that 45% of bitcoin exchanges have had to close their doors/file for bankruptcy bc hackers figured them out.  And you would think that people running exchanges would have some knowledge of how to protect their bitcoin?   How in the world is the regular guy going to do it?
Bitcoin is on the frontline of the battle of cryptocurrencies against gov fiat.  Problem is that when you're on the frontline you take all the bullets and beating. Bitcoin will not survive this attack.  It will, however, allow a future crypto to rise in its wake, having learned from bitcoin's death, it will address the security necessity which is simply too lacking in bitcoin.   

Wait.... we have USD as the only currency in circulation on the planet?

What a narrow minded thinking..... now bang your head to the wall and spend more time thinking over what you just said.