Physics and economics will [ensure] distributed mining… I’m not worried

200px-Arduino_ftdi_chip-1Every now and then I read something that I think is inspired.  In this instance I came across a reddit post by someone going by the handle of foolish_austrian.

His expertise and unique look on where bitcoin mining may be in the long term really captured my imagination and I thought readers may enjoy his far off vision of where mining may lead is in the future.  So, without any more from me, here is the [not so]foolish_austrian;- Read more ›

Posted in Bitcoin, General, Guest, Mining, Reddit

Bitcoin Difficulty Reversing

As the graph below from BitcoinWisdom shows for the first time since just before ASICs (Application Specific Integrated Circuits) started to work on the bitcoin network it is possible that we may see a decrease in the difficulty of the bitcoin network.  (This just in, it is official, the difficulty decreased to 40,007,470,271 a change of just under a percent.  It may take some time for your client to adjust and the number to stabilise)

If you click on the graph and go to BitcoinWisdom the telling like is the green one, it is the actual hashrate of the bitcoin network derived from the average time that it takes to solve a block. You will see that it is below the actual difficulty represented by the red line. Read more ›

Posted in Bitcoin, Mining

BTCGuild may be closing

BTCGuildBTCGuild, one of the oldest mining pools that first opened on the 9th of May 2011 issued a statement on their website and reddit that the pool will be closing on the 30th of November 2014.

The full statement from the website follows. Read more ›

Posted in Bitcoin

How I accidentally hacked the igot exchange

igot logo

I agonized a bit about if should post this,  igot responded and acknowledged the problem but unfortunately they don’t see it as a major issue at the moment saying “Since this is a small amount, this is not going to be investigated on priority.”

My mind goes to MtGOX and Moolah though, both are recent examples of an exchange giving out more funds than the client had available (if we believe the official stories) and I think how things could have been different if the person that discovered a flaw in the exchange had, instead of doing what he/she did, informed the exchanges of the problem so the issue could be fixed.

Additionally, just submitting a bug report and leaving it at that is not an option in my mind, people deserve to know about issues like this before they decide on who to entrust their funds to.  If it later comes out that the issue was not fixed or other issues were found and it lead to the loss of peoples funds wouldn’t I bear a bit of responsibility?  After all, I had known something was up, my silence is consent. Read more ›

Posted in Bitcoin, Hack Tagged with:

Warning: Do not download bitcoin from SourceForge

BCLogoIn a continuation of today’s earlier news that Satoshi’s email account has been compromised it now seems that the perpetrator has used the email account to compromise other Satoshi accounts.

First, Satoshi’s P2P Foundation account posted a message warning Satoshi that some of his information was being sold on the darkNet;-

Dear Satoshi. Your dox, passwords and IP addresses are being sold on the darknet. Apparently you didn’t configure Tor properly and your IP leaked when you used your email account sometime in 2010. You are not safe. You need to get out of where you are as soon as possible before these people harm you. Thank you for inventing Bitcoin.

Followed, rather bizarrely by a request for tips to be sent to the 19pta6x1hXzV9F5hHnhMARYbRjuxF6xbbV bitcoin address.  It seems to have already attracted 0.01281469 BTC. Read more ›

Posted in Bitcoin, General, Hack, News Tagged with: , , ,

Satoshi Nakamoto’s email address [email protected] appairs compromised

BCLogoSatoshi Nakamoto, much revered and currently missing inventor of bitcoin seems to have had his email address compromised by an unknown agent.

You may or not remember, Satoshi  exclusively used one email address when he was active in the bitcoin community,  [email protected]  If you have a look at the original bitcoin whitepaper you will find it there at the top just under the title.  He also usually signed his correspondence with his PGP signature. Read more ›

Posted in Bitcoin, General, Hack, News Tagged with: , , ,

New Zealand Exchange hacked, 39 bitcoin stolen.

BCLogoNew Zealand bitcoin exchange site has been taken by the administrator leaving the message “ under maintenance.  Apologies for the inconvenience (contact(at)”.

It seems that last monday at 3am New Zealand time 39 bitcoins were transferred from the exchange by an unknown party.

Bitnz is one of the oldest (and perhaps smallest) bitcoin exchanges that started operators on 21 September 2011.

Danial Newton, the administrator of bitnz in a reddit post explained that he believes that the perpetrator gained access to the exchanges outward mail queue at and then set about resetting peoples accounts and intercepting the reset codes.  The perpetrator then used those reset codes to logon to user accounts and transfer out the bitcoins contained in the account. Read more ›

Posted in Bitcoin, General, Hack Tagged with: , ,

13th Million Bitcoin Mined

BCLogoIt is in truth a minor milestone but for those who like “large whole numbers” block 310001 has just been mined by Ghash.IO pushing the total amount of bitcoin to 13,000,000.

That means that there only another 8 million to be mined over the next 140 years or so until we reach the total maximum of 21,000,000.

The mining process used to mint new bitcoins and secure the network originally paid out 50 bitcoins for each block but that bitcoin reward halves every 21,0000 blocks.  Currently the bitcoin reward is 25 bitcoin every block making it so block 310,001 contained the 13th million bitcoin to enter circulation. Read more ›

Posted in Bitcoin, News Tagged with: , ,

Timothy C. Draper won all of the FBI SilkRoad Bitcoins

Tim_Draper200It was quite possible we may have never found out who won the US Marshal Service  auction for the 30,000 Bitcoin (just under 20 Million USD at today’s rate).  It was quite possible that the next time we saw any movement from the address containing the bitcoin (1a8LDh3qtCdMFAgRXzMrdvB8w1EG4h1Xi) it would be on its way to exchanges to be dumped for a fiat currency.

However, this is not the case, well known venture capitalist and bitcoin entrepreneur Timothy C. Draper has come forward and said that he, in partnership with emerging exchange Vaurum snapped up the bitcoin as a as yet undisclosed amount in order to “provide bitcoin liquidity in emerging markets.”

Not a lot is known about Vaurum at present apart from that they recently received funding from Boost Venture Capital causing some confusion on Slashdot but their Bitme service is designed to allow the purchase  of large amounts of bitcoin in a secure, trusted environment.  While it has not been said in the press release it seems likely that Bitme will be next port of call for the 30,000 bitcoins.

Posted in Bitcoin

29,658.80112195 Confiscated FBI Coins on the move

Skull_and_crossbones We have been waiting and here it is, the 29,658.80112195 Confiscated FBI Coins held in 1Ez69SnzzmePmZX3WpEzMKTrcBF2gpNQ55 have started their move.

It is not into the eventual 30,000 BTC blocks from the auction yet but I will keep an eye on them and update this post as it happens.

They have been split out into the following addresses;-

It looks as if they are splitting off small change amounts from there.

Where they go from there and who actually owns them is unknown. As mention previously these coins are the first part of the Dread Pirate Roberts stash and there are another 144,341 bitcoins to go.

UPDATE: According to coindesk that is it.  One bidder ended up winning all of the bitcoins and they have now been delivered the the winners address (1a8LDh3qtCdMFAgRXzMrdvB8w1EG4h1Xi).

Posted in Bitcoin, News Tagged with: , , ,