Silk Road 2.0 Hacked, All Funds Stolen

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$2.6 million in bitcoin was stolen by hackers? Money that can't be traced and wont be reported because it was for a drug transaction? Are you thinking what I'm thinking? These guys just skipped town with your bitcoin.

On Thursday, one of the recently-reincarnated drug-selling black market site’s administrators posted a long announcement to the Silk Road 2.0 forums admitting that the site had been hacked by one of its sellers, and its reserve of Bitcoins belonging to both the users and the site itself stolen.
 
Best bank robbers ever! Don't even have to leave your own home to do it!
 
bitcoin has been a great source of entertainment if nothing else
 
bitcoin has been a great source of entertainment if nothing else

truth. cant say i feel too bad for these saps. it is a little annoying that anytime i try to talk about bitcoins with people who dont know anything about the currency, they just dismiss it as made up and not secure and doomed to failure, and because of idiots like these it will continue to earn that reputation even though it's actually the opposite.
 
truth. cant say i feel too bad for these saps. it is a little annoying that anytime i try to talk about bitcoins with people who dont know anything about the currency, they just dismiss it as made up and not secure and doomed to failure, and because of idiots like these it will continue to earn that reputation even though it's actually the opposite.

So far it has been insecure and its volatility has put it in a position of likely failure. There is a laundry list of things that need to be corrected before Bitcoin will be taken seriously. First up is stabilizing the value, developing a deposit insurance program, and getting away from its association with money laundering and illegal activities.

Right now at best its a speculative investment with high risk and high rewards.
 
So far it has been insecure and its volatility has put it in a position of likely failure. There is a laundry list of things that need to be corrected before Bitcoin will be taken seriously. First up is stabilizing the value, developing a deposit insurance program, and getting away from its association with money laundering and illegal activities.

Right now at best its a speculative investment with high risk and high rewards.

You sound like a parrot.

Bitcoin is here to stay and that train has already left the building.

Get on or get flattened. :cool:
 
So far it has been insecure and its volatility has put it in a position of likely failure. There is a laundry list of things that need to be corrected before Bitcoin will be taken seriously. First up is stabilizing the value, developing a deposit insurance program, and getting away from its association with money laundering and illegal activities.

Right now at best its a speculative investment with high risk and high rewards.

the thing that needs to be corrected is that people need to be smart about their security, and smart about who they trust with their bitcoins. it is much easier for a hacker to steal your passwords than for a theif to break into your house and steal your belongings, and they dont even have to actually come to you to do it. the value will eventually stabilize once all the bitcoins are found and people finally have an idea of what the value is. deposit insurance is not needed, but im sure somoene will come up with that if it becomes an accepted currency. cash has association with crime too, and it does fine.

You sound like a parrot.

Bitcoin is here to stay and that train has already left the building.

Get on or get flattened. :cool:

meh im still not convinced. i think that there's a very good chance bitcoins will be an accepted currency someday, but not until all bitcoins have been mined. i really hope you're right, but i dont think it's that clear yet.
 
Call me a pessimist, but you guys (crypto-coiners) really think the govts and the TPTB (banksters, etc.) of the world will really let this thing take hold? TPTB will not allow themselves to be left out of this game, so either they will take it over or it will be banned. There's way too much at stake for them to cede control of money.

Even the US constitution states that only the US govt can create money. This is a founding principle.
 
So far it has been insecure and its volatility has put it in a position of likely failure. There is a laundry list of things that need to be corrected before Bitcoin will be taken seriously. First up is stabilizing the value, developing a deposit insurance program, and getting away from its association with money laundering and illegal activities.

Right now at best its a speculative investment with high risk and high rewards.

DING DING DING. Basic rules of economics still apply: The more money is created and put into the system, the more inflation you get. Which long term, is unsustainable, leading to a correction of the currencies value.

Without a body like the Federal Reserve to keep prices stable, you will see a ping-pong effect as the market goes between rapid increases in value, followed by rapid devaluation.

Secondly, resellers are on the hook for changes in the price of the Bitcoin. If the value rapidly declines in relation to the dollar, they risk selling goods at well below market value. And after a few times of this blowing a hole in their balance sheets, business will back off.

My arguments against alternative currencies are strictly structural.
 
You really have to be a grade A moron to put money into anything connected with Silk Road after the first version was closed down.
 
Idiots and fools playing bankerman, hilarity ensues.

No, Govt's and the financial industry will not allow this to go beyond silly curiosity.

I have to laugh, security?

Security is a tweeting bird, who's song smells bad. :rolleyes::eek::cool:
 
the thing that needs to be corrected is that people need to be smart about their security, and smart about who they trust with their bitcoins. it is much easier for a hacker to steal your passwords than for a theif to break into your house and steal your belongings, and they dont even have to actually come to you to do it. the value will eventually stabilize once all the bitcoins are found and people finally have an idea of what the value is. deposit insurance is not needed, but im sure somoene will come up with that if it becomes an accepted currency. cash has association with crime too, and it does fine.



meh im still not convinced. i think that there's a very good chance bitcoins will be an accepted currency someday, but not until all bitcoins have been mined. i really hope you're right, but i dont think it's that clear yet.

I doubt it's much longer before we see a new reality show, "Bitcoin Rush", on the History Channel.

Might as well get Todd Hoffman to do it because he sure as hell can't find any Gold.
 
As i see it now its worth is rapidly dropping mtgox has it at 400 a coin

Gox is irrelevant for pricing information.

Get your information from a real source, like Coinbase or BTCE.
 
Call me a pessimist, but you guys (crypto-coiners) really think the govts and the TPTB (banksters, etc.) of the world will really let this thing take hold? TPTB will not allow themselves to be left out of this game, so either they will take it over or it will be banned. There's way too much at stake for them to cede control of money.

Even the US constitution states that only the US govt can create money. This is a founding principle.

The US constitution doesn't ban me (or anyone else) from placing a value on something (anything).


An extreme example, say the world goes to hell, and we turn into a Walking Dead or mad max type society, there won't be money, things of value would be things like food/water/ammo/medicine, and would be the new prime "currency".

They can ban it all they like -- they still can't stop it's use. Back when the united states was taking shape through history, it was not uncommon for each state to have it's own form of official currency. Just like today we have LTC/DOGE/MAX/etc etc.... I'd wager that 95% of these coins will die out and never strike it rich for many of the people mining them, but guess what... its just how things develop over time.

People talk crap about crypto's -- what about the US dollar we worship so greatly, what possible positive spin could you put on our 17 trillion dollar debt? The fact we borrow to stay afloat, and when we reach a pre- determined ceiling, we just vote to raise it to keep the gravy train going. The same instabilities exist with the US dollar just much more behind the scenes, kept hush hush because of the absolute devastation that can happen when everyone realizes at once how our government has been running itself the past 20 years.

The fact that do nothing politicians are getting paid tons of money to kick the can down the road, and cause way more problems down the line because nobody wants to make tough choices today.

Sure, BTC/DOGE/LTC/etc could crash to zero tomorrow -- at it's core though it represents an idea so much more pure than our current trusted system though.

People, companies, and governments have always done stupid things with money. Bitcoin will be no exception. Honestly, if you are storing your money with a group known to have less than legal intentions, can you really be so shocked when something illegal happens to your money? It's like those funny and rare stories where some dope fiend calls the police because someone robbed him while he was trying to buy drugs. It's stupid and hilarious at the same time.... when something like that happens though we don't condemn the US dollar though do we?
 
The US constitution doesn't ban me (or anyone else) from placing a value on something (anything).


An extreme example, say the world goes to hell, and we turn into a Walking Dead or mad max type society, there won't be money, things of value would be things like food/water/ammo/medicine, and would be the new prime "currency".

They can ban it all they like -- they still can't stop it's use. Back when the united states was taking shape through history, it was not uncommon for each state to have it's own form of official currency. Just like today we have LTC/DOGE/MAX/etc etc.... I'd wager that 95% of these coins will die out and never strike it rich for many of the people mining them, but guess what... its just how things develop over time.

People talk crap about crypto's -- what about the US dollar we worship so greatly, what possible positive spin could you put on our 17 trillion dollar debt? The fact we borrow to stay afloat, and when we reach a pre- determined ceiling, we just vote to raise it to keep the gravy train going. The same instabilities exist with the US dollar just much more behind the scenes, kept hush hush because of the absolute devastation that can happen when everyone realizes at once how our government has been running itself the past 20 years.

The fact that do nothing politicians are getting paid tons of money to kick the can down the road, and cause way more problems down the line because nobody wants to make tough choices today.

Sure, BTC/DOGE/LTC/etc could crash to zero tomorrow -- at it's core though it represents an idea so much more pure than our current trusted system though.

People, companies, and governments have always done stupid things with money. Bitcoin will be no exception. Honestly, if you are storing your money with a group known to have less than legal intentions, can you really be so shocked when something illegal happens to your money? It's like those funny and rare stories where some dope fiend calls the police because someone robbed him while he was trying to buy drugs. It's stupid and hilarious at the same time.... when something like that happens though we don't condemn the US dollar though do we?

The primary reason why the power of creating money was imbedded in the Constitution (Article 1) was because the founders saw the problem that was caused to commerce when there were several competing currencies from different states. You used it as support but in actuality its the basic reason why the TPTB will not allow it.

I agree with all your points about the dollar, my point wasn't about the blind faith in it rather as an example of stakes involved. But lets say the zombie apocalypse comes or a little bit more realistically some sort of economic collapse.. gold is a much more viable (and historically accepted) store of value than a crypto-currency for all the same points you allude to.
 
Criminals stealing from drug dealers.

What else is new.

Move along. Nothing to see here.
 
blah forgot cant edit... anyways just wanted to add that I'm in no way a "gold bug" who's irrational support is unshakeable just stating historical importance of it.
 
So, this is currently the THIRD story I've seen on a Silk Road wannabe and a surrounding shitstorm.

1: The guy basically was scamming and absconded with a buttload of bitcoin.
2: Busted by the government (not the US).
3: Now this one, they were compromised and someone stole the bitcoin.
 
AHAHAHAHAAHAHAHAHAHAHAHAHAHAHA ....::breath:: AHAHAHAHAHAHAHAHAAAHHAHA

I hope you're kidding.

Inflation of the US dollar over the past 5 years has been about 8% in total. That is less than 2% loss of value per year. Bitcoin fluctuates 2% every minute.
 
AHAHAHAHAAHAHAHAHAHAHAHAHAHAHA ....::breath:: AHAHAHAHAHAHAHAHAAAHHAHA

I hope you're kidding.

How have they not? Interest rates are based on Fed policy, which has promoted spending, which has kept the economy from spiraling out of control. It's always an experiment when looking at monetary policy, and we are assuming rates will raise with tapering on the horizon (which we have no idea the long term effect), but through a fairly volatile period they kept the value of the dollar pretty damn constant. There were no long periods of (hyper) inflation, stagnation, or deflation which often happens in extended periods of uncertainty/correction.

Fed can't help starting with Reagan admin deregulation of bank policy drove large investment firms into risky investments of highly lucrative toxic MBS's and CMO's. Both of which everyone was saying you better get on the train or you will be left behind... wait a second, something else is getting that hype right now... what was that?
 
There's a pretty good chance that the owners actually used the recently found Malleability bug as a good excuse to rob their customers. Their explanation of the theft doesn't really make sense.
 
People used to say computers are for the geeks and won't be commonplace. The same is going to happen to crypto currency. Obviously, the treasuries don't want a competing currency but eventually they will have to adopt and integrate but it will require some time since the government doesn't move overnight.
 
I wouldn't be surprised if the heist was state sponsored.
 
People used to say computers are for the geeks and won't be commonplace. The same is going to happen to crypto currency. Obviously, the treasuries don't want a competing currency but eventually they will have to adopt and integrate but it will require some time since the government doesn't move overnight.

That may be true, but even if it is that does not mean Bitcoin itself will be that currency.
 
Riding the fail train isn't any better than getting run over by it. Better to find an alternative means of transportation and let the fools crash and burn.

Sorry bud, the many thousands i've made say otherwise.
 
How have they not? Interest rates are based on Fed policy, which has promoted spending, which has kept the economy from spiraling out of control. It's always an experiment when looking at monetary policy, and we are assuming rates will raise with tapering on the horizon (which we have no idea the long term effect), but through a fairly volatile period they kept the value of the dollar pretty damn constant. There were no long periods of (hyper) inflation, stagnation, or deflation which often happens in extended periods of uncertainty/correction.

Fed can't help starting with Reagan admin deregulation of bank policy drove large investment firms into risky investments of highly lucrative toxic MBS's and CMO's. Both of which everyone was saying you better get on the train or you will be left behind... wait a second, something else is getting that hype right now... what was that?

When a lot of people are talking about something after a meteoric rise in value, but it's stalling that's 90% of the time an extremely bad technical sign.

I'm of the opinion that Bitcoin will peak. The high adoption rate and subsequent price increase appears due to bandwagoning by redditors/technorati and a handful of foreigners looking to exploit their enthusiasm. The additional volume does not appear to correspond with real growth - even within the community many people are questioning the transaction #'s and user base. It seems incestuous more than anything else. The same people pushing companies to use it and drive volume are not increasing the actual user base, they're just getting louder about it to promote its ideology.

For now, it is too complicated compared to paypal and other systems. Maybe something will change that, but there's next to zero confidence in it as a real store of value and the security of holding it. I wouldn't trust my money to any kind of online service regarding bitcoin, and fuck managing offline wallets... what is this 1995? No one's going to do that. So at present it's a virtual trading commodity - more volatile than futures contracts and a fun trading play.

The blockchain and other things are a cool idea but it was implemented by someone with an excellent grasp of technology and a poor grasp of macroeconomics. The current implementation has fundamental flaws. Just one is the lack of any inflationary pressure which discourages real velocity and consumption - leading to a collection mentality for new users or "I'll make money mining/trading cryptocurrencies" rather than "I'll use cryptocurrencies to make online purchses." You really should have many more of the latter than the former but there is the opposite in the bitcoin community.
 
People used to say computers are for the geeks and won't be commonplace. The same is going to happen to crypto currency. Obviously, the treasuries don't want a competing currency but eventually they will have to adopt and integrate but it will require some time since the government doesn't move overnight.

What are you basing your speculation on? The value of all Bitcoins in circulation is somewhere around $1.5 billion. The US Government has approximately $392 billion in gold reserves. The value of all US currency in circulation is $1.23 trillion. Bitcoin is barely a blip on the radar as far as 99% of the world population is concerned.
 
I'm all for a regulating body for the US dollar -- however it's been proven over and over (and seemingly more and more recently) that the people making and doing things in our various bodies of government are increasingly screwing up. Monetary policy overall is one huge expeiment, much like bitcoin. Only difference is the Fed has had a 144 year head start. (and they have seen their share of ups and downs)

I don't care how low or high the inflation rate is -- owing 17 trillion dollars is flat out unacceptable. I don't care what party you back, or who you voted for. It's just flat wrong, and the fact we are at this point says a lot about the way things have been run for the past 20-40 years. It's not a single party, it's not a single person, collectively

Just imagine if the hundreds of billions we've wasted bringing "peace" to other parts of the world, were invested in our crumbling infrastructure or education. We'd at least have something to show for the price tag.

Back to the currency thing -- I understand why the constitution says "the fed" is the only one who can print money... it makes sense in the traditional sense of "money". It would be a cluster if every state started printing it's own cash again.

I know the historical safety of gold -- it's great to have your worth into a solid commodity in situations like rapid inflation. If you are an entity that had that kind of liquidity and time there is nothing wrong with holding some. Outside of the investment side, I see very little use for gold on a private level. Sure people want it because it's shiny, and has use in electronics but should things really hit the fan, you can't eat it, it won't keep you warm, it's just a hunk of metal you would try to trade for something more important.

The entire concept of crypto currency in general is so foreign, there are going to be grey areas all over the place. The fact that this is something GLOBAL is important -- governments aren't going to warm up to it unless there is a way they can have 1) more money or 2) more control. Bitcoin takes away all of their control.... so of course it's going to be made out to be the boogey man.

I do find the debates on the topic hilarious - obviously I support and believe in it. I take my precautions though, and don't make retarded mistakes like keeping my bitcoins in an exchange/site based mainly on criminal activity. For the naysayers on the topic of crypto -- you obviously wouldn't have any horses in the race to coin a phrase, so why get upset over something that does not have any effect on you at all? That would be like me being upset that the cops made a huge cocaine bust and that the street price suddenly jumps 500%.... i have no interest or use for cocaine, so why get upset at the internal goings on in that market?
 
You sound like a parrot.

Bitcoin is here to stay and that train has already left the building.

Get on or get flattened.

Funny. As long as the value of bitcoin is expressed in the form of other currencies, it's no better or worse then those other currencies. It can gain, it can lose, it can become nothing worth nothing more then a Russian Ruble. What it isn't is a game changer.
 
Maybe it will finely make them re-think the whole mining thing and we can get back to buying reasonable priced Video cards again. Yeah I know highly doubtful :rolleyes:. Guess I'll be going back to overpriced nVidia again.
 
I don't care how low or high the inflation rate is -- owing 17 trillion dollars is flat out unacceptable. I don't care what party you back, or who you voted for. It's just flat wrong, and the fact we are at this point says a lot about the way things have been run for the past 20-40 years. It's not a single party, it's not a single person, collectively

If you aren't expressing debt as a percentage of GDP it's not very meaningful.

Additionally the number you're citing is gross debt. The gross debt includes intragovernmental holdings which that are for all intents and purposes at a rate which if held in perpetuity would have their value wiped out by normal inflationary forces. They're not terribly time limited BUT they should only really be taken so far and the current $4 trillion or whatever it is is arguably probably near the top at 20some% of the GDP, but there's still some room.

The total public debt is 73% of GDP which puts us in the middle of the pack of developed healthy economies.

You actually want a decent amount of debt, and you definitely want to spend during recessions as what matters is spurring growth -over time-. Allowing market forces to resolve themselves leads to a massive underperformance, increased government expenses, and lost tax revenue. What matters is area under the curve of revenue and growth. (A quick hypothetical to show a made up example that reflects some real world analysis) It's weird it works like if you dont spend immediately you save $300 billion but lose $500 billion over time while everything struggles. Vs spending $300 billion up front but gaining $400 billion back over time. Obviously you have to do the numbers to figure out how that works but that's what they hire economists for.

The people running this country's economy are actually pretty smart. They don't have a ton of control over things - that's politics, but they know what to do with what they get from Congress.
 
Without a body like the Federal Reserve to keep prices stable, you will see a ping-pong effect as the market goes between rapid increases in value, followed by rapid devaluation.

LOL!

If you look historically, we have had significantly more inflation and a more unstable curency with the Federal Reserve in charge than we did before they existed.
 
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