Bitcoin Down Sharply After Exchange Hack

FrgMstr

FrgMstr

Just Plain Mean
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Reuters is reporting that a relatively small South Korean cryptocurrency exchange has been hacked to the tune of about $37M worth of virtual currency. This has sent Bitcoin to a two month low price.


In a statement on its website on Monday, Coinrail said its system was hit by “cyber intrusion” on Sunday, causing a loss for about 30 percent of the coins traded on the exchange. It did not quantify its value, but in an unsourced report local news outlet Yonhap news estimated that about 40 billion won ($37.28 million) worth of virtual coins were stolen.
 
Kim Jung Un has to have money to pay for his meals. Slave labor (I mean re-education camp labor) is not so good at farming with sticks. Give the guy a break.
 
The charts are about to break from the downtrend and the powers that be cook up another scare story to feed the people so they empty their positions. Therefore i think this story is very convenient to keep control over the cryptos for a few weeks longer.
 
celeron300 said:
The charts are about to break from the downtrend and the powers that be cook up another scare story to feed the people so they empty their positions. Therefore i think this story is very convenient to keep control over the cryptos for a few weeks longer.
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While I do believe there is manipulation, the largest hacker of S Korean crypto exchanges has been shown to be N.K.
 
Just too volatile for me to even consider......one week your up huge the next you loose your shirt. The crap is insane, this is why you don't let speculators into the industry. A universal currency without a central bank source is a good idea, just not that great with the fact that exchanges can be hacked so easily that keeping a hard currency is probably still the most viable option since the only way it can be taken is physically stolen. Which is some cases can be near impossible.

I don't regret not getting into crypto but I did miss the opportunity....hindsight.....
 
I mine a little on the side. Mostly just use down time on my gaming rig to farm altcoins. I sell them soon as I mine them if I can avoid fixed fees. I do have a few extra cards wedged in another machine that mostly mines.

I don't speculate. I mine and sell. Have I got rich? Heck no. Any chance of it? Nope. I have paid off two 1080 TIs and a few 1070s for kids machines though.

They can still pay themselves off in under a year (counting electricity and cooling) particularly good in winter when waste heat saves on heating bill.

So a crypto currency exchange got hacked, lost alt coin but NO bitcoin and bitcoin takes the biggest hit? Huh. Yeah, ignorance and fear.

*edit spelling
 
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Pretty sure the drop was also related to FUD surrounding big exchanges getting subpoena'd around recent market manipulation suit / claims. This small exchange only carried a few hundred million in value
 
mord said:
I mine a little on the side. Mostly just use down time on my gaming rig to farm altcoins. I sell them soon as I mine them if I can avoid fixed fees. I do habe a few extra cards wedged in another machine that mostly mines.

I don't speculate. I mine and sell. Have I got righ? Heck no. Any chance of it? Nope. I have paid off two 1080 TIs and a few 1070s for kids machines though.

They can still pay themselves off in under a year (counting electricity and cooling) particularly good in winter when waste heat saves on heating bill.

So a crypto currency exchange got hacked, lost alt coin but NO bitcoin and bitcoin takes the biggest hit? Huh. Yeah, ignorance and fear.
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It's like the whole sub-prime mortgage securities. Everybody panicked because it's a sign of an underlying problem. In this case, the problem is "Security of the money and the method from which it's handled." I IMAGINE The only way to effectively deal with it is mine without an exchange keeping all your keys on a piece of paper or USB until you are ready to trade.
 
DigitalGriffin said:
It's like the whole sub-prime mortgage securities. Everybody panicked because it's a sign of an underlying problem. In this case, the problem is "Security of the money and the method from which it's handled." I IMAGINE The only way to effectively deal with it is mine without an exchange keeping all your keys on a piece of paper or USB until you are ready to trade.
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yes, that would be much safer. I limit my exposure by never having more than like $10 in crypto before converting and depositing into a USD bank account that's just used for deposits and transferring out. I loose out on a few % because I have to avoid fixed fee's and scrape just over min transfer fee's. I also have to use slightly less than best exchange rates to have an exchange path that has no fixed fee's that would kill my profit on very small transactions.

I don't think this drop in Bitcoin was related to the hack at all. I think bitcoin is probably fairly safe itself, but exchanges are big fat juicy targets that can have horrible security in their own systems. Governments still seem to have the mindset of they hope they, crypto coin and exchanges, will just go away or if not they want a cut. Neither puts the security of individuals crypto as high importance. We all know every business likes to skimp on IT security because it is viewed as a pure drain on profit with no benefit to the bottom line. There is 0 ROI in cyber security for yourself, and the way most accountants look at it 0 ROV (return on value). Until they really accept the chances of getting hacked are high enough they need to worry about the ROV of the company's name and existence, IT security will keep being something management wants to have a $0 budget.
 
mord said:
yes, that would be much safer. I limit my exposure by never having more than like $10 in crypto before converting and depositing into a USD bank account that's just used for deposits and transferring out. I loose out on a few % because I have to avoid fixed fee's and scrape just over min transfer fee's. I also have to use slightly less than best exchange rates to have an exchange path that has no fixed fee's that would kill my profit on very small transactions.

I don't think this drop in Bitcoin was related to the hack at all. I think bitcoin is probably fairly safe itself, but exchanges are big fat juicy targets that can have horrible security in their own systems. Governments still seem to have the mindset of they hope they, crypto coin and exchanges, will just go away or if not they want a cut. Neither puts the security of individuals crypto as high importance. We all know every business likes to skimp on IT security because it is viewed as a pure drain on profit with no benefit to the bottom line. There is 0 ROI in cyber security for yourself, and the way most accountants look at it 0 ROV (return on value). Until they really accept the chances of getting hacked are high enough they need to worry about the ROV of the company's name and existence, IT security will keep being something management wants to have a $0 budget.
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I think you are dead on when it comes to security, they would rather let someone else loose their shirt over security breaches than the company. At this point its almost like cyber security is put more on the individual's shoulders rather than a company because there is no ROI. Hence why these companies get a slap on the hand when it comes to breaches.....the company get barely a scratch but the people effected are baring the weight of the breach.
 
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Imagine if a company like Charles Schwab was able to be hacked like these crypto exchanges. What would happen to a) Charles Schwab and b) the stock market in general.

I was in to bitcoin during the Mt Gox saga, all the wallet thefts, etc etc. It's a big turn off to see the volatility and insecurity of all the platforms. They'll never get mass adoption until they make it easy enough for Joe Dirt to use it
 
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Idiots here.

And it was not because of the exchange hack. That exchange barely has any volume.
 
SomeoneElse said:
Just too volatile for me to even consider......one week your up huge the next you loose your shirt. The crap is insane, this is why you don't let speculators into the industry. A universal currency without a central bank source is a good idea, just not that great with the fact that exchanges can be hacked so easily that keeping a hard currency is probably still the most viable option since the only way it can be taken is physically stolen. Which is some cases can be near impossible.

I don't regret not getting into crypto but I did miss the opportunity....hindsight.....
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As a currency, Crypto has failed for exactly this reason. It's still viable as an investment tool, but once more and more people realize Crypto has failed as a currency it's value will decline farther. Nevermind the electricity costs crypto takes up, which is already starting to get passed to consumers.

I fully expect this craze to die off within the next few years.
 
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