Another Bitcoin exchange hacked, and another pice drop.

[Jet Cash]

Following a cyber-attack on South Korean bitcoin exchange Coinrail over the weekend, the cryptocurrency suffered yet another massive sell-off ....
But how can a relatively small attack on a fairly niche virtual currency exchange in just one country cause such a plunge in crypto value?  ....

http://www.wired.co.uk/article/coinrail-hacked-bitcoin-exchange-price

CoinRail was hacked, and it makes one wonder what is behind all these attacks. Obviously this type of news creates price instability, and that must be in the interest of the banking world, who would like to see decentralised crypto-currencies pushed into the backwoods.

I can't decide if these "hacks" are false reports by fraudulent exchanges, the action of the fiat banking members, or just theft by oportunistic thieves. It makes me realise the importance of running your own node if you want to store Bitcoin as an investment for the future.

[1714652070]

1714652070

[vapourminer]

It makes me realise the importance of running your own node if you want to store Bitcoin as an investment for the future.

by "node" you mean your own wallet? one where keys are in your possession, not a 3rd party (ie like exchanges and some web wallets)?

i use trezors and nano s but many coins ive grabbed for lulz have no support on trezor/nano.

i do run a full non pruned bitcoin node with a wallet with a small amount of btc for day to day spending but its only online once a week or so for syncing (or when i need it for sending coin or creating a new receive addy).

[Jet Cash]

I've got two nodes. One I sync about twice a week, and the other one is online for about half an hour most days. I feel that gives me the most control, and the best security over my money. It also means that I can collect the forked alt coins as well. The best one is on an Ubuntu netbook, and the blockchain and wallet data is on an external SSD. That one is the one that's online twice a week. Running a full node is not expensive or difficult, and the software seems to be pretty stable.

[vapourminer]

I've got two nodes. One I sync about twice a week, and the other one is online for about half an hour most days. I feel that gives me the most control, and the best security over my money. It also means that I can collect the forked alt coins as well.

you can collect forked coins on the trezor/nano also. sometimes automatically through tools they provide. or just transfer all coins out to a new wallet, and import the old seed into an electrum wallet or something. presto, you now have your new worthless shitcoins!

[Jet Cash]

Well they don't all seem to be worthless, and not all wallets seem to allow for the collection of all forked coins. I feel that alternative wallets and exchanges are really just crypto-banks, and I'm trying to avoid banks.

[TheButterZone]

All custodial BTC exchanges should shut the fuck down permanently before another hack/"hack".

[aleksej996]

Uh, who knows what is the reason of a price drop really. It could be something quite unrelated or it could be that the investors are expecting a massive sell-off from the attackers that would decrease the price for a short while, so they are preparing for it by selling first or something.

Either way, I think it is normal or maybe even quite beneficial for these exchanges to get hacked, really.
People should use Bitcoin for what it is, a way to control your own money and keep money in their own wallets.
When they need to make an exchange, they can use decentralized exchanges like Bisq, other than that it really isn't much of surprise to me for centralized exchanges to get hacked.
Banks get hacked all the time as well and these exchanges have bitcoins which are a lot easier to use than fiat so obviously it will be more useful to hackers.
All of these exchanges are just accidents waiting to happen, it isn't anything new and Bitcoin will obviously be absolutely fine after these hacks.

We survived the Mt. Gox hack, we can survive all others.

[Jet Cash]

People are their own jailers. The pure Bitcoin concept seems to be one of the safest ways to store wealth, as long as we can avoid a mining takeover that is. People don't seem to be able to handle the concept, so they have to introduce 3rd party banking services. This just turns Bitcoin into an extremely volatile alternative to the fiat system, and loses the advantages of decentralisation.

[Don Pedro Dinero]

What I don’t understand is how those exchanges get hacked. Don’t they have their private keys safely (offline) stored?

Banks get hacked all the time

I don’t think so. Have you got multiple links to back what you say?

[Jet Cash]

I think banks are "hacking" themselves, and pretending this is the result of software errors. They seem to be doing this to test the water before they start to shut down the system to implement bail-ins.