How can paper money survive without proper recovery system?

If you lose your paper money you lose everything.And please dont say that you need to backup your paper money.Thats bullshit.Everyone can lose paper money.What community think of it?

You don't know the difference between capitalism and corporatism. Don't feel bad, it's a common error.

No need to speculate. Portugal decriminalized drugs and pretty much every statistic improved. Drug use down. Deaths from drugs down. Drug users seeking help up. Enforcement money is spent on rehabilitation instead, so people end up getting off drugs instead of in the prison system turning into harder criminals.

I see many posters in this thread got it wrong. I understand, brainwashing is hard to overcome.

The war on drugs is a complete failure, unless you happen to be a drug dealer or cop, then it's big money for you. Regular people are less safe thanks to this war on personal freedom.

Trying to determine policy is always a simple exercise. Choose freedom every time if you actually want things to improve.

Dude, you might as well go explain the internal combustion engine to a two year old. At least you would have a chance at success instead of just wasting your time!

Pretty much everything, to franky1, is about the block size, and he goes to great lengths trying to convince everyone that we desperately need to increase it last year or Armageddon. 'Cuz you know, the best use case for censorship-proof money is sending ha'pennies around the world for free!

OP, I suggest you read and learn as much as you can before moving forward with Bitcoin.

You should understand what a private key is and why it is important.
You should learn how to use an air-gapped device to create and store private keys (this process is known as cold storage).
You should grasp the concept of a block chain and realize that there are reasons why transactions have fees and take time to confirm (and why confirmations are important).
You should realize that Bitcoin is still a relatively new, disruptive technology and that comes with a volatile exchange rate (don't panic when your bitcoins gain or lose 10% of their value in one day).
You should be able to read my signature and fully grasp the concept behind it.

Once you've done these things, you should be comfortable that you have the knowledge required to secure large amounts of value with Bitcoin. Until you've obtained that knowledge, and applied it properly, you should fully expect to lose all your bitcoins to various hacks, scams, and thefts.

Certainly.

First, what is my M.O.? Protect users funds, steal from users illegally, or steal from users legally?

If it's: Provide services that gamblers traders demand while keeping their deposits safe and complying with all regulations. Fuck that. I'd rather chew glass. Beside, you aren't paying me enough.

Also, fuck legal/financial definitions, I'm only interested in reality. If you want to actually "own" bitcoins (in a way where another individual requires your permission to obtain the asset), see my sig. Anything short of that comes with the risk of total loss.

So you are telling me that Finex settled positions via the block chain with these segregated wallets? This doesn't jive with "readily accessible/real time" as confirmations on the block chain take time. If they didn't settle each position via the block chain, but internally or on paper, then why couldn't they use actual security for actual block chain transactions?

P.S. "Proven security methods" only require that they actually be implemented. Third party audits and licenses are only for verification and compliance.

I don't see how separating wallets by individual depositor requires ignoring proven security methods. Are you suggesting that security and appeasing the CFTC are mutually exclusive?

Well, BitGo's website states that they are "The leader in blockchain security" along with "100% secure". If their job is to secure bitcoins, it shouldn't matter how badly the customer tries to screw up, they should still secure the coins!

If I take my car to a garage and tell them to replace the brake pads with eight blocks of sharp cheddar cheese, they had better talk me out of it or refuse entirely. Especially if they are "The leader in automotive safety" and "100% safe".

Why would BitGo, a company which prides itself on securing bitcoins, let one of their customers choose a solution with no security at all? They should have either had precautions in place or, if they couldn't provide the kind of service that Finex desired, they should have turned them away as a customer explaining that their proposed solution is insecure.


The one where one customer isn't allowed to withdraw 1%ish of all the bitcoins in existence without some kind of flag going up. LOL!

Even if they were individual addresses, they all belonged to the same customer: Finex.

From everything I've read, that seems to be the case Adam. BitGo and BitFinex are both very keen to point out that none of the blame lies with BitGo. Finex apparently had a custom setup with BitGo, unlike any other BitGo customer.

Either BitGo simply signed everything requested by Finex, or the hackers were able to bypass/avoid any kind of security precautions that BitGo had in place.

In either case, it looks to me like BitGo is shit when it comes to security, which is supposed to be their job. They provided Finex with a system that had no security or their system was easily bypassed. Fail or fail.

Perhaps there is something else going on and I haven't read about it or it isn't public knowledge?

If they are doing it at all, it's already done. You think they are going to do it after they make the announcement? LOL.

I tried.

https://bitcointalk.org/index.php?topic=443251.msg4880764#msg4880764

Oh good lord. You are such a drama queen. As long as Bitcoin is one of the best methods to avoid capital controls, it's not going anywhere.

All we are going to get is volatility from an uncertain market. Guess what, that will just bring in more gamblers traders.

Well... you've found the point of terrorism. /thread

Thief creates transaction with .2 btc in fees every block. Fee is melted into coin base rewards. Next ten years of coin base rewards are blacklisted. Miners can't profit. Bitcoin network ceases to exist! LOL!

How many coins have been blacklisted from the countless other thefts in the history of Bitcoin? How many confiscated?

Exactly! Just like all those other dirty coins.

So, lets play this out.

The top pools decide to blacklist the BitFinex theft addresses (BFTA). Let's say the top 5. Looking at bc.info (I know it's not the best place to get info but whatever), the top 5 pools have about 70.6% of the hash rate over the past 4 days. So any blocks created by them will not include transactions from the BFTA.

But wait, there is still @30% of the network to deal with. As soon as they find a block, transactions from the BFTA are included.

Never fear, the top 5 pools aren't finished yet! They ignore blocks from the puny 30% and refuse to build on them. Now we have miners 51% "attacking" the Bitcoin network to blacklist some coins. I'm sure that won't cause any problems.

The thief probably isn't stupid either. He starts including huge miner's fees (multiple bitcoins per transaction) to include his transactions in the block chain. The small pools keep building their chain earning tons of bitcoins from fees (which are melted into the coinbase rewards). The smaller miners start upping their hash power with their new found income!

We now have two viable chains. One with fungibility, one without. Hey, Bitcoin is like Ethereum now! Exchanges list both coins (they love getting those trading fees, don't they)! BTCa and BTCb can be traded against each other. The free market decides which properties are more valuable. Hilarity ensues.

Hey, after this, we can hard fork both forks with bigger blocks and have four chains. BTCa1mb4eva, BTCa8mb, BTCb1mb4eva, BTCb8mb. The more the merrier!

I can't wait for miners to decide to fuck with the network over some contentious issue. I'm sure, as businessmen, they are ready to assume the risk that they will be mining worthless tokens in the hopes of picking the chain that the market prefers! No risk, no reward, amirite?

I'm sorry, but that is a ridiculous statement.

There is a very simple, very proven method to secure your bitcoins.

Create and store your private keys on a machine that never touches a network.

This is known as cold storage.

You can even take the additional step of dividing that cold storage with a M-of-N scheme of your choosing.

I would go so far as to say that cold storage combined with a M-of-N scheme makes Bitcoin the most secure asset on the planet. Done correctly it is impossible for anyone to touch your coins without your explicit permission.

Well... you said "told you so" in about as nice a way possible, so don't sweat it.

I would say prudent is the proper word when taking the necessary measures to secure one's coins. I use similar methods. The key being that the keys never touch a networked machine. Oh, and plenty of copies. No need for physical loss of your storage media to result in an actual loss when you can make copies of your money!

Sure, I agree it's temporary. Some of us don't have any dry powder to turn it into a buying opportunity. Oh well.