General Discussion

dixiegrrrrl

(60,010 posts) Wed Apr 3, 2013, 06:53 PM Apr 2013

Guess I am happy I did not go in for Bit Coins:

Because it is an online only system, people keep their Bitcoins in a service like Instant Wallet...

Which just notified customers ...
"The Instawallet service is suspended indefinitely until we are able to develop an alternative architecture."

seems it got hacked and cannot undo the damage, so has to re-build all their "accounts"
http://notice.instawallet.org/

7 replies

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Guess I am happy I did not go in for Bit Coins: (Original Post) dixiegrrrrl Apr 2013 OP

I'm sure the accounts are safe in the sense that they are backed up probably hundreds of times. Gravitycollapse Apr 2013 #1

More information... Gravitycollapse Apr 2013 #2

This can also happen with 'real' currency... *cough*Cyprus*cough* phantom power Apr 2013 #3

ohhh yeah! dixiegrrrrl Apr 2013 #4

I don't put money in anything I don't understand. Ron Obvious Apr 2013 #5

Not exactly. TheSickEmpire Apr 2013 #6

Hack attacks hit Bitcoin exchange rates muriel_volestrangler Apr 2013 #7

Gravitycollapse

(8,155 posts)

1. I'm sure the accounts are safe in the sense that they are backed up probably hundreds of times.

Reply to dixiegrrrrl (Original post)

Wed Apr 3, 2013, 06:55 PM

Apr 2013

Through isolated networks for just such circumstances as this.

Gravitycollapse

(8,155 posts)

2. More information...

Reply to dixiegrrrrl (Original post)

Wed Apr 3, 2013, 07:00 PM

Apr 2013

http://techcrunch.com/2013/04/03/bitcoin-instawallet/

phantom power

(25,966 posts)

3. This can also happen with 'real' currency... *cough*Cyprus*cough*

Reply to dixiegrrrrl (Original post)

Wed Apr 3, 2013, 07:02 PM

Apr 2013

just sayin

dixiegrrrrl

(60,010 posts)

4. ohhh yeah!

Reply to phantom power (Reply #3)

Wed Apr 3, 2013, 07:31 PM

Apr 2013

I have been real uncomfortable with the rush to digatize ALL money transactions.
Having 1 or more fallback options is a nice feeling.

Ron Obvious

(6,261 posts)

5. I don't put money in anything I don't understand.

Reply to dixiegrrrrl (Original post)

Wed Apr 3, 2013, 07:55 PM

Apr 2013

But I admit that I feel there's only a tenuous relationship between a number in a computer and any actual money I might have. I know we've been off the gold and silver standards for years, so that's all it ever is in a bank anyway, but the thought still makes me uncomfortable.

TheSickEmpire

(191 posts)

6. Not exactly.

Reply to dixiegrrrrl (Original post)

Thu Apr 4, 2013, 06:02 PM

Apr 2013

It is definitely possible to keep a Bitcoin wallet relatively safe. You can do this either by copying down your public and private key on paper, or saving your wallet.dat file (hopefully encrypted) to a flash drive. It is highly recommended to do this for any large sum of BTC. You can still have an online wallet for spending, but you generally don't keep large amounts of BTC in there.

Edit: If you're interested, you can find more detailed information about securing a bitcoin wallet here.

muriel_volestrangler

(101,311 posts)

7. Hack attacks hit Bitcoin exchange rates

Reply to dixiegrrrrl (Original post)

Thu Apr 4, 2013, 07:18 PM

Apr 2013

Online services and exchanges dealing in Bitcoins have been hit by hack attacks that led to a drop in the value of the virtual currency.

Trading on the MTGox exchange, which handles most trades in Bitcoins, was sluggish yesterday as the site fought off an attack.
...
The value of Bitcoins surged to a new high this week with each one worth about $142 (£94). Barely a week ago, each virtual coin was worth only $90.
...
The attacks, coupled with a spike in trading volumes, combined to cause delays in trades being confirmed and led the value of Bitcoins to drop sharply to about $120.

http://www.bbc.co.uk/news/technology-22026961

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