What problem does bitcoin solve?

[ShadowOfHarbringer]

Quoting provides context to those who do not read the entire thread, so I will continue to do it.

I did not say "stop quoting at all". Just quote OVER the message, not UNDER it.

Look at your post, now back at mine.
Now back at your post, now back at mine.
Sadly, your post isn't mine, but if you stopped bloody quoting under the message, it could be like mine.

Is that so difficult ?

(Also, I am on a horse)

[bitcool]

IF bitcoin is successful, I believe there will be a inflection point in the future when government(s) will try to destroy bitcoin's existence, either indirectly (at protocol/network level as described in Jason's posts), or directly (by facilitating malicious programs/runtimes).

Considering the enormous economic and social consequence in stake, rest assured the last standing fiat government body will not give up without a fight.

The only question is which government will lead this effort, the issuer of USD, RMB, ... or IMF SPR.

[bitcool]

For a irreversible digital currency to survive, it has to be 100% reliable -- I am not talking about individual transactions or storage, I am talking about the whole system.

I am wondering whether following nightmarish scenario can become a reality:

In year 2030, with the help from a branch of government XYZ, a computer virus is released, for a period of several days, it simultaneously hijacks sourceforg website and infected millions of bitcoin client executables, moving funds to other infected nodes before destroying the wallet.dat files. Before bitcoin development team gets the message out and releases a patch, billions users has been impacted and millions BTC have been destroyed.

[ShadowOfHarbringer]

For a irreversible digital currency to survive, it has to be 100% reliable -- I am not talking about individual transactions or storage, I am talking about the whole system.

I am wondering whether following nightmarish scenario can become a reality:

In year 2030, with the help from a branch of government XYZ, a computer virus is released, for a period of several days, it simultaneously hijacks sourceforg website and infected millions of bitcoin client executables, moving funds to other infected nodes before destroying the wallet.dat files. Before bitcoin development team gets the message out and releases a patch, billions users has been impacted and millions BTC have been destroyed.

You just went totally offtopic with this man.

[Anonymous]

Quoting provides context to those who do not read the entire thread, so I will continue to do it.

I did not say "stop quoting at all". Just quote OVER the message, not UNDER it.

Look at your post, now back at mine.
Now back at your post, now back at mine.
Sadly, your post isn't mine, but if you stopped bloody quoting under the message, it could be like mine.

Is that so difficult ?

(Also, I am on a horse)

lol.

[kiba]

In year 2030, with the help from a branch of government XYZ, a computer virus is released, for a period of several days, it simultaneously hijacks sourceforg website and infected millions of bitcoin client executables, moving funds to other infected nodes before destroying the wallet.dat files. Before bitcoin development team gets the message out and releases a patch, billions users has been impacted and millions BTC have been destroyed.

Tons of valuable will be stolen via social engineering attack before the government have the chance to try out that attack. Thus, users of bitcoiners continue to learn...

[ShadowOfHarbringer]

In year 2030, with the help from a branch of government XYZ, a computer virus is released, for a period of several days, it simultaneously hijacks sourceforg website and infected millions of bitcoin client executables, moving funds to other infected nodes before destroying the wallet.dat files. Before bitcoin development team gets the message out and releases a patch, billions users has been impacted and millions BTC have been destroyed.

Tons of valuable will be stolen via social engineering attack before the government have the chance to try out that attack. Thus, users of bitcoiners continue to learn...

Human is almost always the weakest link.

[bitcool]

Tons of valuable will be stolen via social engineering attack before the government have the chance to try out that attack. Thus, users of bitcoiners continue to learn...

Human is almost always the weakest link.

sounds like a fundamental conflict between collectivism and anarchism -- maybe Collectivist Anarchism is our destiny? 

[ShadowOfHarbringer]

Tons of valuable will be stolen via social engineering attack before the government have the chance to try out that attack. Thus, users of bitcoiners continue to learn...

Human is almost always the weakest link.

sounds like a fundamental conflict between collectivism and anarchism

More like conflict of Human vs Machine.
When comes to security, social techniques are more effective than strictly computer ones.

[bitcool]

For a irreversible digital currency to survive, it has to be 100% reliable -- I am not talking about individual transactions or storage, I am talking about the whole system.

I am wondering whether following nightmarish scenario can become a reality:

In year 2030, with the help from a branch of government XYZ, a computer virus is released, for a period of several days, it simultaneously hijacks sourceforg website and infected millions of bitcoin client executables, moving funds to other infected nodes before destroying the wallet.dat files. Before bitcoin development team gets the message out and releases a patch, billions users has been impacted and millions BTC have been destroyed.

You just went totally offtopic with this man.

sorry, just found out an entire thread is dedicated to this topic ("Hostile action against the bitcoin infrastracture").. fascinating.

[just a man]

More like conflict of Human vs Machine.

I disagree, at the end of the day computers are only human.

[davout]

(Also, I am on a horse)

You just became my new god.

[ShadowOfHarbringer]

(Also, I am on a horse)

You just became my new god.

BTW,
I forgot to add that my horse is amazing.
http://www.weebls-stuff.com/songs/Amazing+Horse/

(Warning: this stuff can melt your brain, you're opening this link on your own responsibility.)

[v-tim]

Thanks for some very interesting answers. I'm trying to write some followup questions to some of the topics that have been brought up.
I have put together some scenarios, or use-cases. I'd love some thoughts about these too.

1) I am a conservative senator with very traditional values, focus on the family and such. I do however in my spare time purchase gay porn. Naturally I don't want to associate my visa-card with such activities, so I buy some bitcoins with said card and then spend those in a shop which caters my interest. I do this though TOR or some other anonymous service, perhaps a VPN bought with bitcoins. How long, if ever, does it take for the journalists to show up at my door?

2) I am a computer professional who decide to run a service in I2P that is somewhat "gray" in the legal sense. A service that has both legal and illegal uses. I allow people who wish do donate bitcoins to this service. I already have a bitcoin wallet which I use for things that are 100% legit, so I use a receieve adress which is only used in the I2P-service. Will my anonymity be compromised by recieving bitcoins? Will it be compromised when I spend coins on the "open" internet?

If these questions have been answered a few hundred times, perhaps even in the FAQ I apologize and will hang my head in shame and go read those, if you'll just give me the link. I haven't seen anything about this, but perhaps I haven't looked hard enough.

I'll see if I can't come up with a few more scenarios later, if I can think of any.

[MoonShadow]

Thanks for some very interesting answers. I'm trying to write some followup questions to some of the topics that have been brought up.
I have put together some scenarios, or use-cases. I'd love some thoughts about these too.

1) I am a conservative senator with very traditional values, focus on the family and such. I do however in my spare time purchase gay porn. Naturally I don't want to associate my visa-card with such activities, so I buy some bitcoins with said card and then spend those in a shop which caters my interest. I do this though TOR or some other anonymous service, perhaps a VPN bought with bitcoins. How long, if ever, does it take for the journalists to show up at my door?

It really depends upon, not just how careful you are, but how careful the gay porn site is.  This is why bitcoin is psudoanonymous, not truly anonymous.  You can actually choose to not disclose your identity to the porn site, but you really cannot hide it from a determined investigator.  If a reporter were to associate one or more bitcoin addresses to the gay porn site, and then associate one of the addresses that have sent them money with you; then use of Tor doesn't matter, you're going to be on the news.

2) I am a computer professional who decide to run a service in I2P that is somewhat "gray" in the legal sense. A service that has both legal and illegal uses. I allow people who wish do donate bitcoins to this service. I already have a bitcoin wallet which I use for things that are 100% legit, so I use a receieve adress which is only used in the I2P-service. Will my anonymity be compromised by recieving bitcoins? Will it be compromised when I spend coins on the "open" internet?

Again, this isn't about the security of Bitcoin itself.  If the bitcoin address(es) used to receive donations for said service are associated to yourself, you're burnt.  And yes, you could out yourself by sending the coins to another address of your's that is known to be yours, or by spending those coins with someone or some site that could be compelled to tell the interested who it was that bought something with those coins.  There may not be a shipping address,  but there would be other clues in the logs that a talented investigator could use.

[theymos]

If these questions have been answered a few hundred times, perhaps even in the FAQ I apologize and will hang my head in shame and go read those, if you'll just give me the link.

https://en.bitcoin.it/wiki/Anonymity

You can remain anonymous if you mix the coins well enough, though this is currently difficult.

[matonis]

v-tim,

Are you a venture capitalist or angel investor?

[FreeMoney]

BTW,
I forgot to add that my horse is amazing.
http://www.weebls-stuff.com/songs/Amazing+Horse/

(Warning: this stuff can melt your brain, you're opening this link on your own responsibility.)

Wow, I almost din't escape. Does it do that to everyone every time? Maybe I'm just up too late. I'm afraid to click it again.

[ShadowOfHarbringer]

BTW,
I forgot to add that my horse is amazing.
http://www.weebls-stuff.com/songs/Amazing+Horse/

(Warning: this stuff can melt your brain, you're opening this link on your own responsibility.)

Wow, I almost din't escape. Does it do that to everyone every time? Maybe I'm just up too late. I'm afraid to click it again.

Well, You have been warned. You can't sue me for any permanent brain damage anymore.
I myself suspect this may contain some subliminal messages - I see no other explanation of this hypnotic power.

[kiba]

I don't get it.