I'm here to remind the fellow bag holders what this recent event means.

First of all, once again tens of thousands of BTC were stolen. We don’t even know if the other 4 unknown linode customers had lots of funds stolen as well. This proves once again that no matter how hard you try, you will probably always get your Bitcoins stolen somehow.

Second of all, this particular kind of attack will probably not happen again to the same service providers. But I am sure there are enough possibilities left to satisfy us all. After all, this is the second time now Bitcoinica was hacked in perhaps two weeks of time. I hope everyone remembers what happened to Mt. Gox a while back and how it affected them - they have really boosted security ever since. Mt. Gox is the biggest exchange and by far the biggest target, and they've had no issues whatsoever after the infamous hack. Except for a bit of DDoS, and doing a planned outage on Europeans during a crash. And except for HFT bot loops which made trading impossible for hours.

And finally, the third aspect of this is that attacks like these can be made near-impossible with multisignature support. Gavin wrote about this in his blog (http://gavintech.blogspot.com/2012/03/bitcoin-faucet-hacked.html) and explained how it would work for the faucet. It's true that encryption alone would've helped in this particular attack, but multisig would make any attack very difficult to pull off. I feel that the pressure from this event could be enough to finally get multisig into Bitcoin, which will come in a few months at the earliest, which is years in Bitcoin time.

That's it. My conclusion is that for the long term this event is actually negative for Bitcoin, not positive. That's why I will call any further drops an appropriate reaction. That means that there still could be a drop but we will bounce back once people chew on this thing a little more. Trust me, guys, everything will be fine. Don’t mind the >50k stolen BTC and the trust breach Bitcoin suffered once again.

Yes, I expect people to tell the outright truth, or else I expect they have facts to hide or twist. And even though profit seems to be the measure of everything these days, I don't see how going with that flow is grown up at all. Keh. Court games, involving not saying the most important fact, such that they don't have to pay what they fucked up. Makes me sick.

He can't be holding 40k Bitcoins ?

If he do, he's really bullish!  

He should buy them ASAP.

So the next question:

Is this going to count as a breaker for the bottom triangle thingy?

I believe there is a secret rocket taking off again. Lots of small buying over the last 24hrs and basically no serious selling. Ask walls are being eaten away slowly but surely. Leads to me believe that a larger buy could be close. Not that it will necessarily lead to anything big, we might still be stuck close to $5 for a while.

Fucking bitcoinica is down. 

No comment.

I expect to see Bitcoin go mainstream in 2012 thanks in part to some major investors of an invention of mine.

Also, when Bitcoin Magazine gets out in the air, it's going to start picking up some major glances and interests.

Think about it though...the higher your debt obligations become, the more dollars you will need to pay off that debt creating a higher demand for dollars thus raising the value of those dollars relative to everything else including commodities. Its part of a deflationary spiral that Japan for example has been suffering from for two and a half decades. Their yen is going up in value relative to their debt obligations...not down.

Donations involve a lot of micro transactions which is the main reason why it's only a matter of time before more and more charities start endorsing Bitcoin. It's just so much cheaper than the alternatives and convenient as well.