Author Topic: Bitcoins  (Read 52720 times)

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Offline Alastair

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Re: Bitcoins
« Reply #15 on: June 04, 2011, 05:08:16 PM »
I might invest more if I understood what is going on, but for me it's just a bit of fun. I'm fairly sure Bitcoin is not a currency now as no one wants to spend it and no one can spend it unless you want a lot of Alpaca wool socks  :hihi:

So if it's not a currency then what is it? The only real thing you can buy with it is Dollars and Pounds, more every day it seems, until the bubble goes pop.

I don't see how I could reinvest profit to buy more Bitcoins, as the profit is already in Bitcoins, so I wouldn't convert them into cash just to convert them back again into these strange things called Bitcoins.

Offline nick3

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Re: Bitcoins
« Reply #16 on: June 07, 2011, 04:10:41 PM »
What does underpin the whole banking system?

Gold isn't it ?

Offline Alastair

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Re: Bitcoins
« Reply #17 on: June 07, 2011, 04:19:37 PM »
Gold isn't it ?

Nope. Currency hasn't been backed by gold for yonks. Maybe even longer.

All currency is now what is called "fiat currency", which means it's worth money because the government says it is.

Offline nick3

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Re: Bitcoins
« Reply #18 on: June 10, 2011, 07:35:08 PM »
Why does the BOE and others have tons of gold in vaults then, I thoguht it was so they could prove they could back-up their currency.

Offline Oblomov

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Re: Bitcoins
« Reply #19 on: June 10, 2011, 08:25:33 PM »
I think gold was finally abandoned by the dollar in the early 70s &  all other currencies followed suit and became "fiat currency" - money that is only worth what the govt says it is worth.

from wiki:

However, gold reserves are held in significant quantity by many nations as a means of defending their currency, and hedging against the U.S. Dollar, which forms the bulk of liquid currency reserves.

Offline Alastair

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Re: Bitcoins
« Reply #20 on: June 10, 2011, 08:50:24 PM »
Gordon Brown sold off half of the UK's gold reserves when he was Chancellor. He sold at the bottom of the market losing something like £2 billion.

The Bank of England's museum is very good, far more interesting than you would expect. You can pick up a gold ingot, but it's inside a thick perspex dome with a hole to put your arm in and security guards on either side.

Offline Alastair

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Re: Bitcoins
« Reply #21 on: June 11, 2011, 05:11:41 PM »

Offline Alastair

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Re: Bitcoins
« Reply #22 on: June 19, 2011, 08:36:41 PM »
Recently it's all gone tits up with Bitcoins. They plummeted to a third of their peak value and there is a trojan virus which steals the bitcoins of infected computers. Someone lost 25,000 BTC, worth $500,000 at the time they were nicked.

And today I logged onto Britcoin (the UK site for exchanging Bitcoins) and found this message. MtGox.com is the biggest exchange site working in $US and had a daily trading volume of around $2million:

Due to the recent events at MTGox.com, we at Britcoin have decided to move our servers to a new location. MTGox suffered an SQL injection which means access to the site's funds were in the hands of the malicious hacker. As such, until we see evidence to the contrary, for security reasons we are assuming that MTGox has none of it's client's bitcoins. For this reason, we have withdrawn their access to our servers and the sensitive information on those servers.

While our servers were separate, we were purchasing server space from MagicalTux, the owner/operator of MTGox. We have already moved all our customer bitcoins to a wallet which has newly been created and has the highest measure of security possible. The GBP deposits of course are still safe in our business bank account as well.

We will put Britcoin up again as soon as possible, but only once we are confident we have the highest level of security our users deserve.

Offline splodge

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Re: Bitcoins
« Reply #23 on: June 19, 2011, 10:49:45 PM »
If webservers are open to SQL injection attack (which is so very easy to prevent) then one would have to call any other security measures they claim into question.

Honestly, in PHP, pretty much the most used web programming language, you only have to say $sql = addslashes($sql) to prevent it:(

http://php.net/manual/en/function.addslashes.php
Ad astra tabernamque

Offline Oblomov

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Re: Bitcoins
« Reply #24 on: June 19, 2011, 11:10:49 PM »
Wheres Norman Lamont when you need him?

Don't forget there's also mysql_real_escape_string($suspect_SQL)

Offline Alastair

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Re: Bitcoins
« Reply #25 on: June 20, 2011, 12:00:23 AM »
If webservers are open to SQL injection attack (which is so very easy to prevent) then one would have to call any other security measures they claim into question.

Honestly, in PHP, pretty much the most used web programming language, you only have to say $sql = addslashes($sql) to prevent it:(

http://php.net/manual/en/function.addslashes.php


I don't really understand this stuff, but I know it's something you are expert in. Even as an outsider I got the impression that the Bitcoin trading systems have been wide open to attack.

There's a public list now of all the people who registered at the MtGox trading site with username, email and encrypted password.

I had registered at the site, but never used it and my details were on that public list. Scary stuff!

When I tried to log onto my Gmail account this evening I was locked out due to suspicious activity and I had to reactivate my account. In other words hackers had already tried to access my email. Of course I then changed all my passwords to anything important even though I used a unique password to register with the hacked site.


Offline Oblomov

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Re: Bitcoins
« Reply #27 on: June 20, 2011, 12:44:34 AM »
Did you cash out in time?

Offline Alastair

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Re: Bitcoins
« Reply #28 on: June 20, 2011, 09:21:09 AM »
Did you cash out in time?

Yes.

I bought 50 Bitcoins for £250 initially. When the price was high I sold 18 of them for £253 to protect my investment leaving me £3 up whatever happens to the remaining 32 that I still have.

I just checked and I could sell my remaining Bitcoins for £282. I'm tempted, because I don't see them going up in the near future after this major hack.

Offline Oblomov

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Re: Bitcoins
« Reply #29 on: June 20, 2011, 09:24:11 AM »
I was registered with Mt Gox too and got those emails.

I also got one puporting to be from Mt Gox (from a chinese address) with a nice little attachment:
Quote
Dear Mt.Gox user,

Our database has been compromised, how you already know.

To protect your account in the future, please download  the Certificate (self-extracting archive) from Attachment and install it.

If you were using the same password on Mt.Gox and other places (email, mybitcoin.com, etc),
you should change this password as soon as possible.

Please accept our apologies for the troubles caused, and be certain we will do
everything we can to keep the funds entrusted with us as secure as possible.


Any unauthorized access done to any account you own (email, mtgox, etc) should
be reported to the appropriate authorities in your country.

Thanks,
The Mt.Gox team

Needless to say I didn't, and you shouldn't (although I doubt it crossed your mind to either).