Pretty much. A good exchange keeps the vast majority of their funds offline, i.e on a usb key with a paper copy in a safe, and only keeps whatever float they need online and insures it.
On Thu, Dec 7, 2017 at 10:27 AM, Robert <[email protected]> wrote: > So, if I have this right, someone cracked into someones "wallet" got their > encryption key and used it to generate a new "transaction" that creates a > new owner of the sum of bitcoin with a new encryption key and that act is > added to the blockchain distributed database? > > On 12/7/17 6:59 AM, Steve Jones wrote: > >> Not the same. You can identify that money in one way or another >> sonetimes, all the time if its cash and you wrote down the serials. Fdic >> doesnt insure your money. It insures the value of your money in its >> jurisdictional institutuions in exchange for you letting them use that >> value. They just choose the risk level theyre willing to take. Take 100 >> dollar bill to the bank, write down the serial. Come back the next day and >> withdraw it. Different serial, not your money, your moneys value. >> >> The decentralized nature of cryptocurrency means there is nowhere to >> turn. There is no serial only transactions. Coinage aside thats where one >> of the many failures of cryptocurrency falls. The dark nature of it ensures >> there will never be anything about it that makes one bitcoin identifiable >> from another, if that were to happen, it would collapse. >> >> Just wait until the bug is found that answers the initial question, and a >> duplicated and indiscernable wallet hits. Thats a matter of time. Then, >> noone even has to steal, they just invalidate your entire wallet with one >> transaction. With counterfeit money, you can identify it, destroy it, >> remove it from circulation without invalidating someone elses money. >> Thats why fiat and precious metal backed currencies have an accompanying >> authoritative enforcement agency. >> >> On Dec 7, 2017 8:42 AM, "Josh Reynolds" <[email protected] <mailto: >> [email protected]>> wrote: >> >> Same as if somebody punches you and takes your wallet, or takes more >> than the 250,000K the FDIC insures out of your $20mil bank account. >> >> On Dec 7, 2017 8:26 AM, "Steve Jones" <[email protected] >> >> <mailto:[email protected]>> wrote: >> >> Recreating it is the same as counterfitting. If i lose 100 bucks >> while im out. I cant wake up and when the hangover cures, just >> print a new bill. Crypto currency is by nature "anonymous" >> whoever posseses it owns it, not like a stock or bond thats got >> a trail of identifiable ownership. >> This is why it will never function as an actual currency, its >> just a digital commodity with no inherent safety net. Even a >> gold bar you can stamp. One bitcoin is theoretically >> indiscernable from another, so even if you tracked it, you >> couldnt prove ownership. With no central backing, even if you >> could, theres no enforcement body to make anyone give it >> back.... aside from a hard fork >> >> On Dec 7, 2017 8:17 AM, "Gino A. Villarini" <[email protected] >> <mailto:[email protected]>> wrote: >> >> Right.. Same idea >> >> From: Af <[email protected] >> <mailto:[email protected]>> on behalf of Matt Hoppes >> <[email protected] >> <mailto:[email protected]>> >> Reply-To: "[email protected] <mailto:[email protected]>" <[email protected] >> <mailto:[email protected]>> >> Date: Thursday, December 7, 2017 at 9:38 AM >> >> To: "[email protected] <mailto:[email protected]>" <[email protected] >> <mailto:[email protected]>> >> Subject: Re: [AFMUG] Bitcoin Worth Millions Stolen Days >> Before US Exchange Opens | Business News | US News >> >> Right. But this is digital. >> >> On Dec 7, 2017, at 08:24, Gino A. Villarini >> <[email protected] <mailto:[email protected]>> wrote: >> >> Same as you steal paper money, you can’t deactivate the >>> stolen notes and draw yourself new ones … >>> >>> From: Af <[email protected] >>> <mailto:[email protected]>> on behalf of Matt Hoppes >>> <[email protected] >>> <mailto:[email protected]>> >>> Reply-To: "[email protected] <mailto:[email protected]>" >>> <[email protected] <mailto:[email protected]>> >>> Date: Thursday, December 7, 2017 at 9:09 AM >>> To: "[email protected] <mailto:[email protected]>" <[email protected] >>> <mailto:[email protected]>> >>> Subject: Re: [AFMUG] Bitcoin Worth Millions Stolen Days >>> Before US Exchange Opens | Business News | US News >>> >>> How do you steal bit coin it's digital currency. Can't you >>> just deactivate whatever was "stolen", and re-create it, >>> this digital currency is completely foreign to me. >>> >>> On Dec 7, 2017, at 08:07, Jaime Solorza >>> <[email protected] >>> <mailto:[email protected]>> wrote: >>> >>> https://www.usnews.com/news/business/articles/2017-12-07/bit >>>> coin-miner-nicehash-reports-hack-theft-of-its-wallet >>>> <https://www.usnews.com/news/b >>>> usiness/articles/2017-12-07/bitcoin-miner-nicehash-reports- >>>> hack-theft-of-its-wallet> >>>> >>>> Jaime Solorza >>>> >>> >> >> >> -- Carl Peterson *PORT NETWORKS* 401 E Pratt St, Ste 2553 Baltimore, MD 21202 (410) 637-3707
