Hacking of bitcoin banks

[zuppen]

The last year there have been several hackings of bitcoin banks.

There are several goverments that dont aprove of bitcoin and have the resources to make the hacks happen.

the news newer claim to know who was behinde the hacks. Is there any out there that knows how to get the truth out then start.

I love bitcoin and i dont want it to fail. But if there is any chance that a goverment is trying to underminde the project of bitcoin, please we need to help.

I dont know how to help but there is better people than me.

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[manobra]

Hi Fox Mulder,

The concept of crypto currency has already been stablished.

No way to get back anymore...

[doctorsnaggles]

The last year there have been several hackings of bitcoin banks.

There are several goverments that dont aprove of bitcoin and have the resources to make the hacks happen.

the news newer claim to know who was behinde the hacks. Is there any out there that knows how to get the truth out then start.

I love bitcoin and i dont want it to fail. But if there is any chance that a goverment is trying to underminde the project of bitcoin, please we need to help.

I dont know how to help but there is better people than me.

There are no "hacks" of Bitcoins ... Bitcoin itself is safe... its rather a problem of people handling it and losing bitcoins. Nobody "hacks" your Bitcoins and nobody did so far. There were scams where Bitcoins were send to people who were not entitled to receive them ... but again, for this to happen, a human error is required.

[IrishFutbol]

The last year there have been several hackings of bitcoin banks.

There are several goverments that dont aprove of bitcoin and have the resources to make the hacks happen.

the news newer claim to know who was behinde the hacks. Is there any out there that knows how to get the truth out then start.

I love bitcoin and i dont want it to fail. But if there is any chance that a goverment is trying to underminde the project of bitcoin, please we need to help.

I dont know how to help but there is better people than me.

North Korea already counterfeit's US Dollars and nothing can be done.  Just the same, nothing would be done about governments stealing coins from websites.

[spazzdla]

Why in the heck would you put your bitcoins in a bitcoin bank.. That's odd.

What we need to do is educate people on how to properly store your coins.

[Meuh6879]

The last year there have been several hackings of bitcoin banks.

no.

poor webmaster have build poor exchange service that it have fail to work.

[Elwar]

The whole point of Bitcoin is no more need for banks.

It would be like burning mp3s onto a tape cassette that then uses a special player that can read the mp3s. Then complaining when you lose your mp3 collection because the tape got caught in the player.

[LMGTFY]

I suspect the OP meant "exchanges", not banks, but it's a common misconception: people seem to feel a need to keep their BTC "somewhere", even if that somewhere is completely inappropriate. Bitcoin gives me the ability to be my own bank, but it does require I make some effort. "Banking" at an exchange is much easier, with the obvious caveat that it's no longer my BTC - I've effectively donated it to a third-party and hopefully I'll be able to regain control at some point.

[Taras]

Decentralize exchanges. 

[retrend]

I suspect the OP meant "exchanges", not banks, but it's a common misconception: people seem to feel a need to keep their BTC "somewhere", even if that somewhere is completely inappropriate.

Convenience is probably the number one factor in where people store their coins (for people who leave them on exchanges etc)

[LMGTFY]

I suspect the OP meant "exchanges", not banks, but it's a common misconception: people seem to feel a need to keep their BTC "somewhere", even if that somewhere is completely inappropriate.

Convenience is probably the number one factor in where people store their coins (for people who leave them on exchanges etc)

Oh definitely. And obviously if someone is trading regularly they need to - and it's appropriate to - keep some coins on an exchange (or, ideally, spread their risk across multiple exchanges). But for non-traders an exchange may be convenient but it's a bad place to hold all (or most) of their coins, for all the reasons we've seen with MtGox over the past few years, and other exchanges over the past week.

[ZackP]

It looks like there is an explosion of breaking into Bitcoin exchanges/banks. Scary is how easy it is and how much money gets stolen from investors. There is no responsibility or prosecution and suddenly it comes to view that "operators" are running totally unprofessional (hard pressed to say) establishments. Even Mt. Gox USA looks like it was 2 man and bunch of occasional temporary help. Result = thousands of investors lost hundreds of millions of dollars.
Conclusion, BTC is years away to be ready for prime time.
 

[LMGTFY]

It looks like there is an explosion of breaking into Bitcoin exchanges/banks. Scary is how easy it is and how much money gets stolen from investors. There is no responsibility or prosecution and suddenly it comes to view that "operators" are running totally unprofessional (hard pressed to say) establishments. Even Mt. Gox USA looks like it was 2 man and bunch of occasional temporary help. Result = thousands of investors lost hundreds of millions of dollars.
Conclusion, BTC is years away to be ready for prime time.
 

Exchanges are not the same as BTC. Exchanges are not the same as Bitcoin.

Exchanges really should be viewed as places to trade BTC (or buy, and then withdraw BTC. Or deposit BTC right before a sale).

There are plenty of other places to do other stuff with BTC - including buying and selling it (OTC platforms like Localbitcoins, or even Bitcointalk - the first time I sold BTC it was here).

You're right about MtGox looking like a two-man band - that's my view too, and whether we're correct or not that's the impression most people will have. We need to make sure that they understand that a crappy exchange doesn't reflect on the Bitcoin protocol, any more than an insolvent bank reflects on the local fiat currency. (A better example, as exchanges aren't banks, might be an FX exchange or broker, but I'm sure you get the idea!)

On the subject of responsibility - people need to take responsibility for their finances! That's the beauty of Bitcoin, it allows us to take responsibility in a way we've never been able to do before. Unfortunately, taking responsibility sometimes means hard work - educating ourselves, and taking steps to minimise risk.

[doctorsnaggles]

It looks like there is an explosion of breaking into Bitcoin exchanges/banks. Scary is how easy it is and how much money gets stolen from investors. There is no responsibility or prosecution and suddenly it comes to view that "operators" are running totally unprofessional (hard pressed to say) establishments. Even Mt. Gox USA looks like it was 2 man and bunch of occasional temporary help. Result = thousands of investors lost hundreds of millions of dollars.
Conclusion, BTC is years away to be ready for prime time.
 

Exchanges are not the same as BTC. Exchanges are not the same as Bitcoin.

Exchanges really should be viewed as places to trade BTC (or buy, and then withdraw BTC. Or deposit BTC right before a sale).

There are plenty of other places to do other stuff with BTC - including buying and selling it (OTC platforms like Localbitcoins, or even Bitcointalk - the first time I sold BTC it was here).

You're right about MtGox looking like a two-man band - that's my view too, and whether we're correct or not that's the impression most people will have. We need to make sure that they understand that a crappy exchange doesn't reflect on the Bitcoin protocol, any more than an insolvent bank reflects on the local fiat currency. (A better example, as exchanges aren't banks, might be an FX exchange or broker, but I'm sure you get the idea!)

On the subject of responsibility - people need to take responsibility for their finances! That's the beauty of Bitcoin, it allows us to take responsibility in a way we've never been able to do before. Unfortunately, taking responsibility sometimes means hard work - educating ourselves, and taking steps to minimise risk.

Exactly thats it..... they should add the last sentence to the wiki of bitcoin. Once people understand that its them that have the responsibility now, perhaps things will change for the better. Right now, the majority of problems are a result of pure stupidity... ponzi schemes, scam websites etc... all that because of the logic of responsibility. I mean, as long as people continue to behave irresponsibly, there will be people getting their money and nobody is to blame. Its easier to steal Bitcoins than euros or dollars cause people have learned (not all) already to protect their euros and dollars (i mean like the "get 20% daily bonus crap websites")... it will take time, but one day also people will understand to use bitcoins or similar currencies.

[ZackP]

"...taking steps to minimize risk."
 
I am very happy to say that I am not the one of tens of thousands of people who lost everything on Mt. Gox USA scam. However, how come that only after exchange is obliterated into dust things like 2 guys show surface. That means those thousands are guilty for trusting advertising and US company.  

In Edmonton, Canada single guy run Flexcoin and place of business was registered with PO box number! How crazy is that? He and his "investors" got wiped out few days ago after break in into his "exchange".

How people determine who is reliable and who not? That's million or 500 million (Mt. Gox US) dollar question.

[LMGTFY]

"...taking steps to minimize risk."
 
I am very happy to say that I am not the one of tens of thousands of people who lost everything on Mt. Gox USA scam. However, how come that only after exchange is obliterated into dust things like 2 guys show surface. That means those thousands are guilty for trusting advertising and US company.  

In Edmonton, Canada single guy run Flexcoin and place of business was registered with PO box number! How crazy is that? He and his "investors" got wiped out few days ago after break in into his "exchange".

How people determine who is reliable and who not? That's million or 500 million (Mt. Gox US) dollar question.

Hypothetically, if I wanted to sell a large amount of BTC, I'd take a look at the exchanges (and other methods) available to me, I'd research them to see if people seemed to be having positive or negative experiences (ruling out any with obvious "red flags"), I'd sell a small amount of BTC on each exchange (ruling out any exchange where there were problems), and then I'd split the remaining BTC between the remaining exchanges, sell fast, and withdraw my fiat as quickly as possible.

Obviously this needs to be adapted to the circumstances - if I wanted to sell BTC for GBP my options would be very limited. And for a small amount of BTC I'd obviously be less concerned (but I'd still do some research). Basically, my goal is always to minimise exposure to risk - research, spread risk, and keep exposure time to a minimum. And trust your hunches - if it seems too good to be true, run away fast. If you're not sure if it's a scam, don't risk more than you can comfortably afford to lose (that's good advice for investing anyway).

[Joshuar]

So exactly what does the Bitcoin bank do, give interest on your Bitcoin that you store there? But then they'd lose money..

[Sindelar1938]

If you have btc on a bitcoin exchange or in a bank, you are beyond all help anyways!