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Comment: Re:This story is completely overblown (Score 1) 272

by Ash-Fox (#40124651) Attached to: Hacked Bitcoin Financial Site Had No Backups

What protections are there besides the government stepping in if the bank goes bankrupt?

The government stepping in if they 'steal' the money or do shady non-sense too. Also, even without the latter, the quoted argument is still fairly important, nothing is too big to fail.

But no BitCoin bank actually puts that in their terms of service

Based on what you define a "BitCoin bank"... First result on Google searching on this...

Bitcoin Market LLC makes no warranties, expressed or implied, and hereby disclaims and negates all other warranties, including without limitation, implied warranties or conditions of merchantability, fitness for a particular purpose, or non-infringement of intellectual property or other violation of rights. Further, Bitcoin Market LLC does not warrant or make any representations concerning the accuracy, likely results, or reliability of the use of the materials on its Internet web site or otherwise relating to such materials or on any sites linked to this site.

According to their data, they are well used.

Comment: Re:This story is completely overblown (Score 1) 272

by Ash-Fox (#40121857) Attached to: Hacked Bitcoin Financial Site Had No Backups

The difference between traditional banks and (unregulated) BitCoin banks, is that traditional banks are usually backed by the government if they should go belly-up. Outside of that, I don't see much difference.

Not only that, but there are regulations in place to ensure protections.

It's just as illegal to steal BitCoins as it is to steal from a traditional bank account, and the bank has the same duty to reimburse the stolen money.

It doesn't actually, since a terms of service for bitcoins can be legally binding in where it says there is no warranty of services. Banks cannot do that.

Comment: Re:Honestly... (Score 1) 272

by arth1 (#40120603) Attached to: Hacked Bitcoin Financial Site Had No Backups

I may be wrong, but is it not a standard procedure to rsync files to one backup location that is not directly accessible from the original data and then have a backup of the backup in an offsite location?

It may be a common procedure, but it's bad procedure that should not be standard. rsync doesn't handle files that are open well, and you risk ending up with a bad remote copy. Use a real backup procedure instead of rsync.

Comment: Re:This story is completely overblown (Score 1) 272

by Ash-Fox (#40120519) Attached to: Hacked Bitcoin Financial Site Had No Backups

To put some perspective on the Bitcoinica incidents, in 2008, the estimated UK bank fraud level was £52.5 million; that is 990.28441 times the amount of this Bitcoin theft

To put some perspective, you're protected by law with the above, not with Bitcoin. Any money stolen from individuals is certainly returned.

There are people on many sides who want Bitcoin to fail, and who will do anything to stop it from growing. The banks hate it, because it will disintermediate and replace their business. The Statists dont like it because it will defund their socialist dreams. The gold bugs loathe it because it is not gold. Keynesian journalists bristle at the fact that the money supply in Bitcoin is limited, and dream of seeing it destroyed.

I doubt the majority of people in the above industries even know what Bitcoin even is. I think you have misconceptions of grandeur, sir.

Bitcoin will continue to grow, and events like this will winnow out the weak services and strengthen the existing ones.

But why would you use Bitcoin instead of Solidcoin?

Bitcoin

Hacked Bitcoin Financial Site Had No Backups 272

Posted by timothy
from the harsh-lessons dept.
An anonymous reader writes "A fortnight ago the Bitcoin financial website Bitcoinica was hacked and the hacker stole $87,000 worth of Bitcoins. At the time the owner promised that all users would have their Bitcoins and US dollars returned in full, but one of the site developers has just confirmed that they have no database backups and are having difficulty figuring out what everyone's account balance should actually be. A failure of epic proportions for a site holding such large amounts of money."

Comment: Re:Wonderful Support... (Score 1) 489

by arth1 (#40119519) Attached to: Ask Slashdot: Why Not Linux For Security?

these cheap staff probably dont have the confidence to claim linux experience.

Unfortunately, they often do claim this, and too often with no one in the hiring process competent to see through their bluff.

IMNSHO, exaggerating on a resume or job application is demonstrating that you can't be trusted and shouldn't be hired no matter whether you could be used for your other skills.

Likewise, HR setting up job requirements that realistically one or two people on the entire planet could fulfill is counter-productive, and the underlying reason for all the lies and exaggerations. If you want someone to work for a non-superstar-salary, you need to lower the requirements until people who actually fulfill the requirements will apply, not just the liars.

I'd much rather work with a junior admin with 3 years of actual hands-on experience than one with an Ivy League degree who tried dual-booting ten years ago. And not because of the price, but because he could possibly get the job done.

"Who cares if it doesn't do anything? It was made with our new Triple-Iso-Bifurcated-Krypton-Gate-MOS process ..."

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