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Ethereum Cryptocurrency – Almost $400 Million Vanishes ~ Armstrong

Goldhedge

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Aaaaaand it's gone!



Ethereum Cryptocurrency – Almost $400 Million Vanishes



Thanks to a string of screw-ups and bugs, an unsuspecting developer recently took possession of an estimated $US390 million worth of the Ethereum cryptocurrency by accident. In an attempt to give back the money, however, the guy ended up locking up the funds permanently. Essentially, the money has just evaporated.

It turns out that hackers started the trouble getting into the cryptocurrency wallet service stealing about $42 million. To then patch the vulnerability to their block-chain technology, they introduced a bug that affected multi-signature wallets. These are wallets which require several people to enter keys before funds get transferred. This was intended to be top security for Ether which is the second largest cryptocurrency. Somehow, a guy called “devops199” triggered the bug and took control of all multi-sig wallets unintendedly. Then devops199 attempted to reverse the process to give back the money which then triggered the bug. The result was the destruction all of the funds. The bug caused a chain reaction of events that locked all multi-signature wallets that cannot now be unlocked.

Welcome to the world of Cryptocurrency.
BTW: Blockchain can be hacked, in case you did not know.

https://www.armstrongeconomics.com/...m-cryptocurrency-almost-400-million-vanishes/
 

andial

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Just horrible we used to keep our homes unlocked and our FRN's in the drawer and never worried but with these new cryptocurrencies you just cant trust anyone anymore!
 

solarion

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Good article...Ethereum has been plagued with these sorts of problems...as well as a bailout to reverse the most serious failure. The bailout itself a serious violation of the most fundamental rule of blockchain technology...that being that a blockchain must remain immutable to remain trustworthy.

...but then the article curiously says this, but of course doesn't elaborate.
BTW: Blockchain can be hacked, in case you did not know.
Which blockchain? ...and how will it be hacked? Does it even matter, according to the author, which blockchain one trusts? Bitcoin has never been hacked so the obvious takeaway is that cryptos are inherently unsafe...an assertion which is simply not supported by empirical data.
 

arminius

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Somehow the idea of a trustworthy source of currency as a bit of bits on a computer network just never make any sense to me. All to easily vanished by a single possible screwup. Guess I been hanging out here too long. If you can't hold it...
 

GOLDZILLA

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Totally unexpected I tell ya.
 

solarion

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Somehow the idea of a trustworthy source of currency as a bit of bits on a computer network just never make any sense to me. All to easily vanished by a single possible screwup. Guess I been hanging out here too long. If you can't hold it...
Yes, the same argument used again and again and again...

Except you can hold the private keys, and if cryptos were tangible...THEN they'd be without merit. Further, properly secured bitcoin needn't be on a network at all and if you do screw up, shouldn't you be the one to pay the price? The way it is now with credit card charge backs it's the seller of goods that takes all the risks...turning the old mantra of "buyer beware" on its ears and encouraging poor behavior...as well as much higher fees for all of course.

Using cryptos is just like using cash or gold as payment...give it to the wrong person and you can be robbed. Does this mean that gold and cash are without merit or lousy forms of currency?

Totally unexpected I tell ya.
How so? Ethereum is no stranger to these sorts of issues. It's crap...and should be avoided.
 

GOLDZILLA

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That was sarcasm.....
 

Joe King

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Except you can hold the private keys, and if cryptos were tangible...THEN they'd be without merit.
If they were tangible, they could all be seized and the entire thing shutdown. Ie: ala Liberty Dollar

and if you do screw up, shouldn't you be the one to pay the price?
What?!? No Mulligans? lol
 

solarion

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If they were tangible, they could all be seized and the entire thing shutdown. Ie: ala Liberty Dollar

What?!? No Mulligans? lol
Wait, the lamestream newz told me Von Nothaus was a terrist counterfeiter and MUST be stopped!

Nopers. No mulligans...at least not with worthwhile cryptos. Screw up and send your bitcoins to some Nigerian Prince and that's just tough...next time don't screw up. The same is true if you mailed your cash to Bernie Madoff or sent your gold to a "reputable" Swiss banker...for safe keeping. Yet, we don't blame cash or gold for these things...we blame the people that stupidly trusted the wrong people. I wonder why bitcoin is different?
 

Joe King

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Yet, we don't blame cash or gold for these things...we blame the people that stupidly trusted the wrong people. I wonder why bitcoin is different?
Because come hell or high water, the naysayers have to try to find a chink in its armor? lol
 

arminius

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Yet, we don't blame cash or gold for these things...we blame the people that stupidly trusted the wrong people. I wonder why bitcoin is different?
Bitcoin is different because it's a fantasy on your computer. It's not physical metal, or even physical paper. Please be patient, and see what happens. I have no problems with anyone else playing the crypto currency game, good luck to ya.
 

solarion

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Same old same old. It ain't tangible, therefore it's of no value. Yet ideas can be priceless and oxygen is essential.

Everyone complains about the debt dollar system, but when something finally genuinely challenges it...they hate that too. lol

Understand, I wouldn't have any problem with the re-emergence of a gold standard. I'd welcome a return to honest commodity money. Kids today however, kids that have grown up in the digital age will never accept such limitations. They want to swipe their iPhone to pay for stuff...they want to buy something from Singapore and pay for it in a few seconds. These are things that cash and commodity money cannot do...neither could bitcoin if it were a physical item.
 
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solarion

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I may have extrapolated that from your referring to bitcoin as a "fantasy on your computer" and a "crypto currency game". lol

To me it seems a whole lot easier to take seriously than inflationary debt dollars, particularly when it's nearly impossible to get an accurate count of how many of those things are even floating around out there. With bitcoin you can easily find out precisely how many exist at any given second.

If it came down to commodity money or cryptos, I'd probably choose commodity money, but I don't see a return to commodity money as a means to negotiate mass commerce unless there's some catastrophic regression in technology.