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ColeLT1
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Nicehash just lost 4,736.42642789 BTC / $61,253,030.31 USD

Wed Dec 06, 2017 2:35 pm

From the looks of it, a major bitcoin scam has happened. Inside job, theft of private keys, MT GOX all over? Their reddit is blowing up with info, last night nicehash went down for maintenance, but when they came back up, all their wallet money, and money they hold to payout weekly were wiped out (4,736.42642789 BTC, 61,253,030.31 USD), moved to another wallet, then another, etc, Here is the wallet that took the final transaction, after it bounced around a few addresses:
https://bitinfocharts.com/bitcoin/addre ... t6jh1mB4rq

https://www.reddit.com/r/NiceHash/

I'm out about $300, but could have been MUCH worse if I used their wallet.
 
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Re: Nicehash just lost 4,736.42642789 BTC / $61,253,030.31 USD

Wed Dec 06, 2017 2:43 pm

That's gonna leave a mark...
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Re: Nicehash just lost 4,736.42642789 BTC / $61,253,030.31 USD

Wed Dec 06, 2017 2:47 pm

At this rate the people hacking bitcoin are going to walk away with a lot more than the people mining bitcoin. :P
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Re: Nicehash just lost 4,736.42642789 BTC / $61,253,030.31 USD

Wed Dec 06, 2017 2:51 pm

And yet the BTC price is over 13000.

My kids love bubbles at bathtime.

Clicking on the chart link though, I can't tell what this is showing. Looks like a 61 million balance still. Not sure how to read it.
 
ColeLT1
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Re: Nicehash just lost 4,736.42642789 BTC / $61,253,030.31 USD

Wed Dec 06, 2017 2:54 pm

Hawkwing74 wrote:
And yet the BTC price is over 13000.



Bitcoin itself was not the issue. Most likely a security issue with nicehash allowed them to steal or bypass the private keys. Once news of this hits mainstream, it may hurt the price or not.
 
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Re: Nicehash just lost 4,736.42642789 BTC / $61,253,030.31 USD

Wed Dec 06, 2017 3:01 pm

Why is it "worth" $13,000? It has gained $3500 in a week. Seems bubbletastic to me.
 
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Re: Nicehash just lost 4,736.42642789 BTC / $61,253,030.31 USD

Wed Dec 06, 2017 3:04 pm

Hawkwing74 wrote:
Why is it "worth" $13,000? It has gained $3500 in a week. Seems bubbletastic to me.

At this point if I had any Bitcoins, I would be slowly divesting them.
 
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Re: Nicehash just lost 4,736.42642789 BTC / $61,253,030.31 USD

Wed Dec 06, 2017 3:10 pm

Usually a company changes its name when bad newz hits it...so will they change their name to NiceTrash, NotsoNiceHash, or YouJustGotNiceHashed?

For the poster that asked why is Bitcoin "worth" $13K? Well, speculators can't "short" it, but there is talk that a market will open for shorting it, so if that happens expect it to fall... I just want to be able to make a few dineros mining ETH or XMR for a few more months.
 
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Re: Nicehash just lost 4,736.42642789 BTC / $61,253,030.31 USD

Wed Dec 06, 2017 3:16 pm

Hawkwing74 wrote:
Why is it "worth" $13,000? It has gained $3500 in a week. Seems bubbletastic to me.


People see value in a decentralized currency/store-of-value. There's also a finite amount of them.

If you sincerely want to learn about Bitcoin I highly recommend this page as a great collection of well vetted sources compiled by one of the engineers at BitGo (company developing software for businesses to use BTC): http://lopp.net/bitcoin.html


As for NiceHash... no one knows quite what is happening right now. Whether this was an exit scam or whether it was a hack. I'm leaning towards hack. NiceHash has been in this space for a couple years and has up to this point been reliable. Either way it probably means people who had not transferred their balance to a privately owned wallet are at a lose. Never keep BTC in a wallet hosted by a third party. If you want to get serious about cryptocurrencies you must invest in a hardware wallet such as a Trezor or Ledger. You must keep yourself consistently up to date on best security practices, etc.

As for the price of BTC itself... I suspect there will be a crash sooner rather than later but personally I'm not worried. *shrug* I got into this stuff 8 years while in college. I've got more faith (and that's basically what it is, even if it is a highly informed faith) in it now than ever. But this isn't advice for what you should do with your money.
 
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Re: Nicehash just lost 4,736.42642789 BTC / $61,253,030.31 USD

Wed Dec 06, 2017 3:31 pm

NiceHash wrote:
Unfortunately, there has been a security breach involving NiceHash website. We are currently investigating the nature of the incident and, as a result, we are stopping all operations for the next 24 hours.
Importantly, our payment system was compromised and the contents of the NiceHash Bitcoin wallet have been stolen. We are working to verify the precise number of BTC taken.
Clearly, this is a matter of deep concern and we are working hard to rectify the matter in the coming days. In addition to undertaking our own investigation, the incident has been reported to the relevant authorities and law enforcement and we are co-operating with them as a matter of urgency.
We are fully committed to restoring the NiceHash service with the highest security measures at the earliest opportunity.
We would not exist without our devoted buyers and miners all around the globe. We understand that you will have a lot of questions, and we ask for patience and understanding while we investigate the causes and find the appropriate solutions for the future of the service. We will endeavour to update you at regular intervals.
While the full scope of what happened is not yet known, we recommend, as a precaution, that you change your online passwords.
We are truly sorry for any inconvenience that this may have caused and are committing every resource towards solving this issue as soon as possible.

https://www.reddit.com/r/NiceHash/comme ... _nicehash/
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Hawkwing74
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Re: Nicehash just lost 4,736.42642789 BTC / $61,253,030.31 USD

Wed Dec 06, 2017 3:38 pm

Truly sorry but 61 million is gone. OOPS.
 
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Re: Nicehash just lost 4,736.42642789 BTC / $61,253,030.31 USD

Wed Dec 06, 2017 3:51 pm

ColeLT1 wrote:
Hawkwing74 wrote:
And yet the BTC price is over 13000.



Bitcoin itself was not the issue. Most likely a security issue with nicehash allowed them to steal or bypass the private keys. Once news of this hits mainstream, it may hurt the price or not.


Exactly. Using this as a reason to avoid BTC is akin to using a specific bank robbery as a reason to avoid dollars.
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Re: Nicehash just lost 4,736.42642789 BTC / $61,253,030.31 USD

Wed Dec 06, 2017 3:59 pm

K-L-Waster wrote:
ColeLT1 wrote:
Hawkwing74 wrote:
And yet the BTC price is over 13000.

Bitcoin itself was not the issue. Most likely a security issue with nicehash allowed them to steal or bypass the private keys. Once news of this hits mainstream, it may hurt the price or not.

Exactly. Using this as a reason to avoid BTC is akin to using a specific bank robbery as a reason to avoid dollars.

That's a terrible analogy. Here's a better one: It's like using the fact that banks in some third-world country get robbed at a much higher rate than the worldwide average, and have no equivalent of our FDIC to guarantee customers' deposits, as a reason to avoid doing your banking in that country.
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Hawkwing74
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Re: Nicehash just lost 4,736.42642789 BTC / $61,253,030.31 USD

Wed Dec 06, 2017 4:00 pm

K-L-Waster wrote:

Exactly. Using this as a reason to avoid BTC is akin to using a specific bank robbery as a reason to avoid dollars.

So Bitcon is FDIC insured, you say?

jbi beat me to it.
 
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Re: Nicehash just lost 4,736.42642789 BTC / $61,253,030.31 USD

Wed Dec 06, 2017 4:04 pm

Hawkwing74 wrote:
K-L-Waster wrote:

Exactly. Using this as a reason to avoid BTC is akin to using a specific bank robbery as a reason to avoid dollars.

So Bitcon is FDIC insured, you say?

jbi beat me to it.

Nope and why would it be?
 
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Re: Nicehash just lost 4,736.42642789 BTC / $61,253,030.31 USD

Wed Dec 06, 2017 4:05 pm

whm1974 wrote:
Hawkwing74 wrote:
K-L-Waster wrote:

Exactly. Using this as a reason to avoid BTC is akin to using a specific bank robbery as a reason to avoid dollars.

So Bitcon is FDIC insured, you say?

jbi beat me to it.

Nope and why would it be?

WHOOSH!

I repeat, you seriously need to get that sarcasm detector recalibrated...
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ColeLT1
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Re: Nicehash just lost 4,736.42642789 BTC / $61,253,030.31 USD

Wed Dec 06, 2017 4:07 pm

Hawkwing74 wrote:
K-L-Waster wrote:

Exactly. Using this as a reason to avoid BTC is akin to using a specific bank robbery as a reason to avoid dollars.

So Bitcon is FDIC insured, you say?

jbi beat me to it.


You mean nicehash?
 
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Re: Nicehash just lost 4,736.42642789 BTC / $61,253,030.31 USD

Wed Dec 06, 2017 4:09 pm

NiceHash news isn't going to impact BTC in any real way. Far more likely to have a significant impact on the numerous other alternatives.

Either way the real lesson here is don't trust other people with your money. Don't treat a non-bank, uninsured, unprotected entity as if it is one. As much as I sympathize with those who lost here I also can't help but wonder why they were using such poor management of their assets in the first place. I guess BTC transaction fees scare some off or a lack of knowledge. But either way. Again, do not trust your BTC (or any cyrpto) with a third-party. Set up local wallets, buy a hardware wallet, keep your coins with you.
 
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Re: Nicehash just lost 4,736.42642789 BTC / $61,253,030.31 USD

Wed Dec 06, 2017 4:16 pm

just brew it! wrote:
K-L-Waster wrote:
ColeLT1 wrote:
Bitcoin itself was not the issue. Most likely a security issue with nicehash allowed them to steal or bypass the private keys. Once news of this hits mainstream, it may hurt the price or not.

Exactly. Using this as a reason to avoid BTC is akin to using a specific bank robbery as a reason to avoid dollars.

That's a terrible analogy. Here's a better one: It's like using the fact that banks in some third-world country get robbed at a much higher rate than the worldwide average, and have no equivalent of our FDIC to guarantee customers' deposits, as a reason to avoid doing your banking in that country.


My somewhat-sound-bite-ish point was that this isn't really a BitCoin-as-a-whole problem, it's a problem with a specific wallet provider.

There are going to be people who say the entire currency needs to be avoided because of this or mtGoX or equivalent. I think that's an over reaction.
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ColeLT1
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Re: Nicehash just lost 4,736.42642789 BTC / $61,253,030.31 USD

Wed Dec 06, 2017 4:18 pm

mudcore wrote:
As much as I sympathize with those who lost here I also can't help but wonder why they were using such poor management of their assets in the first place. I guess BTC transaction fees scare some off or a lack of knowledge. But either way. Again, do not trust your BTC (or any cyrpto) with a third-party. Set up local wallets, buy a hardware wallet, keep your coins with you.


Even if you used your own wallet (and should) you still lost this week's (and last weekend's) work, nicehash paid out weekly.
 
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Re: Nicehash just lost 4,736.42642789 BTC / $61,253,030.31 USD

Wed Dec 06, 2017 4:25 pm

It's probably on that hard drive in the Welsh landfill.
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Re: Nicehash just lost 4,736.42642789 BTC / $61,253,030.31 USD

Wed Dec 06, 2017 4:37 pm

I don't see how they're going to manage to cleanly use any of that, it's being watched too closely now.
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Re: Nicehash just lost 4,736.42642789 BTC / $61,253,030.31 USD

Wed Dec 06, 2017 4:44 pm

K-L-Waster wrote:
My somewhat-sound-bite-ish point was that this isn't really a BitCoin-as-a-whole problem, it's a problem with a specific wallet provider.

There are going to be people who say the entire currency needs to be avoided because of this or mtGoX or equivalent. I think that's an over reaction.

Over-reaction, perhaps. But the repeated hacks of major players in the BTC ecosystem, resulting in loss of customer assets, is indicative of a problem. At least with banks and credit card processors, there's a safety net in place that ensures that customers (usually) get their money back when things go south.
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Re: Nicehash just lost 4,736.42642789 BTC / $61,253,030.31 USD

Wed Dec 06, 2017 4:59 pm

just brew it! wrote:
Over-reaction, perhaps. But the repeated hacks of major players in the BTC ecosystem, resulting in loss of customer assets, is indicative of a problem. At least with banks and credit card processors, there's a safety net in place that ensures that customers (usually) get their money back when things go south.


Sure. But the immediate reaction from most people outside the space is to immediately start talking regulation and centralization. Which is completely counter to the ideas and philosophies that drove the creation of Bitcoin in the first place. I don't have any solutions but I do know which solutions I'd never support.
 
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Re: Nicehash just lost 4,736.42642789 BTC / $61,253,030.31 USD

Wed Dec 06, 2017 5:16 pm

Steam just announced they are no longer accepting Bitcoin due to transaction fees hitting a 100x markup from a year ago.... I forgot Steam even offered that as an option.

Heiwashin wrote:
I don't see how they're going to manage to cleanly use any of that, it's being watched too closely now.


That is my question as well... it's all public record because of the blockchain, and so the money is traceable. Since every transaction just adds to the blockchain moving the stolen funds around a dozen times seems rather futile.
 
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Re: Nicehash just lost 4,736.42642789 BTC / $61,253,030.31 USD

Wed Dec 06, 2017 5:45 pm

Makes sense regarding Steam. They should offer purchasing via LTC instead until Lightning is ready.
 
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Re: Nicehash just lost 4,736.42642789 BTC / $61,253,030.31 USD

Wed Dec 06, 2017 11:00 pm

HA. Riiight, they got "hacked". OR, an equally likely alternative is that someone at nicehash just carved themselves out a nice big retirement pension. Think about it. There's basically no regulation to answer to, probably nobody is going to do a proper investigation, everyone will forget about this in a week, and there you have it, $60M embezzlement that you can get away with. It seems to me that Nicehash is more geared toward "beginner" level miners, which would add to the unlikeliness that Nicehash will get anything more than a slap on the wrist for this.
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Re: Nicehash just lost 4,736.42642789 BTC / $61,253,030.31 USD

Wed Dec 06, 2017 11:05 pm

Kougar wrote:
Bitcoin transaction fees hitting a 100x markup from a year ago

In related news, Bitcoin was tested on the lightning network today!!!
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Re: Nicehash just lost 4,736.42642789 BTC / $61,253,030.31 USD

Wed Dec 06, 2017 11:28 pm

Looks like my brief stint with mining on NiceHash again after a months-long hiatus was... well, all for nothing, after a week.

Guess I won't be missing around 0.006 (0.005 of which was from me stopping back in August) BTC to be honest, though I'm looking at other options with regard to coin mining. Mining ETH directly isn't exactly a good long-term proposition with just a GTX 970, which appears to have its rate effectively halved since August or so.

I'm actually thinking of directly mining the two most profitable coins ATM with what I were mining on NH before it came down - assuming NH doesn't come back with a better offer.
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Re: Nicehash just lost 4,736.42642789 BTC / $61,253,030.31 USD

Thu Dec 07, 2017 7:45 am

DPete27 wrote:
In related news, Bitcoin was tested on the lightning network today!!!


I was also "tested" months ago:

https://news.bitcoin.com/bitfury-succes ... s-mainnet/

And, of course, these "integration tests" from the current release (by a different team) all completed succesfully last month, but yet this was all strangely trumpeted as new on the same day as steam announcing it wasn't using bitcoin.

https://cdecker.github.io/lightning-integration/ (ID #8100d3a)

But, most importantly, I'm not sure what they even did. Unlike most github projects, I can't drill down into just what the heck these integration tests DO, nor do they provide any evidence that this has anything to do with the actual bitcoin blockchain. In fact, they're rather vague unto cagey about that.

It seems they just used test channels to move "funds" between two specific parties. Uh, so what? The part that makes anyone care is the opening and closing of these channels occurring seamlessly on chain for a bunch of disparate parties interacting without any independent knowledge of each other.

Weirdly, that's the part their extremely brief, poorly documented and utterly ambiguous write-up indicates didn't happen.

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