Bitcoin Should Get Ready for an Attack
optionT: The article is 1 years old, but it's still pertinent.
Bitcoin Should Get Ready for an Attack
Bitcoin poorly understood and frequently talked about ignorantly is a wonderful new financial tool... and a very timely one. But because of its virtues, it is about to be attacked.
But before I explain how, why, and my recommended responses, let me get everyone up to speed on what this stuff really is:
- Bitcoin is digital cash. You do not get an account, you get a wallet. Holding Bitcoin on a computer is the same as holding government money in your wallet.
- Bitcoin is distributed. There is no central office and no central computer... anywhere.
- Bitcoin can't be printed up, like national currencies. It has to be 'mined', and this requires special computers, lots of calculations, electricity and a bit of luck. It's neither free nor easy.
- Bitcoin is limited. Only 21 million of these things can ever exist, and they can only be mined on a very specific schedule. (About 11 million exist now.)
- Bitcoin can't be changed. Bitcoin is a specific computer program and cannot be changed by any single party. It is a specific set of rules cast into a computer program, and since that program is open source, it can be checked by anyone to assure that there are no secret back doors.
- Bitcoin is pseudonymous. Every transaction is recorded, but real names are not. While it is not properly anonymous, it can be used anonymously if you do simple things like never using the same address twice. (There are even 'laundries'.)
- Bitcoins are oblivious to borders, laws or rules. This is simply computer code nothing else matters.
Why The Fiat Masters Must Attack Bitcoin
I say that Bitcoin will be attacked for the simple reason that it is the anti-fiat currency... and a lot of very powerful people have their entire kingdoms built upon fiat currency and its central banking game.
It is actually very similar to gold and silver in its overall effect: If Bitcoin, or gold, or silver or any combination thereof ever became dominant, no one could play games with the world's money and skim from millions of people at once... or run welfare states in defiance of economic reality.
The bankers do not want to lose their positions, and if they let this alternative currency take over, they will. So, they will have to attack.. In fact, I am sure as I can be that they are doing it already.
I should add that there are socialist types who love this development because it could destroy the greedy bankers, but I don't expect them to deter the attacks to any significant extent.
The Attacks
It is important to understand that the system is not invulnerable. It's certainly not easy to attack (like a Cyprus bank account), but attacks both small and large are possible.
I'm not going to describe large attacks, as I don't want to give anyone ideas. You can either believe me that they are possible, or not. These big attacks, however, would not be easy, and would have side-effects. So, I don't expect to see them first. First, Bitcoin's enemies have to win the PR war.
There was a great line in the movie Gladiator that applies right now: You have a great name. Before they destroy you, they will have to destroy your name.
I'm not sure it's fair to say that Bitcoin has a great name among the general populace, but it certainly does among the best and brightest of the younger generations. And this great name is spreading rapidly in places like Cyprus, and among people who fear a Cyprus-style mass theft coming to their area.
Gold and silver are the traditional ways of avoiding predation, but trying to cross a national border with precious metals these days is to invite theft and punishment. (This was not much of a problem before the 20th century.) Bitcoin, on the other hand, can be moved world-wide, instantly, from the comfort of your chair.
So, the first attacks will be combined with a PR war. The point will be to scare people away. "You'll get ripped-off!" will be their emphatic meme.
Do not underestimate fear, by the way: Humans are hard-wired to over-respond to it. Fear works, which is why power-mongers always use it. And these people also own, influence or control the broadcasting systems that consume nearly all of the Western world's attention.
So, the first attacks will be those that we are already seeing: Malicious hackers breaking into whatever clustered systems they can and stealing. (Or running Distributed Denial of Service [DDoS] attacks.) They are attacking exchangers, wallet hosting services, and so on anything largish that can be hit. They are already publicizing these attacks, but I expect more and better.
The coming attacks will be publicized rapidly with stories and releases prepared ahead of time and will paint the worst possible picture. Afterwards it will be seen that the first loss estimates were wildly high, but that won't matter to the people who see the headlines on the evening news. Joe and Jane Obedient will believe the worst.
This is all manipulation, obviously, since people are being ripped-off in government money, on gigantic scales: millions of thefts at once. Heck, every productive person in the West has about half their earnings taken from them every year in the form of taxes, not to mention the 5-10% they lose every year in the form of inflation. To compare these things to a few stolen wallets is a sick joke. But, such is the state of the West at this sad moment: The large abusers are sanctified and the innovators are demonized.
What to Do About It
Here's my list:
- Be prepared. Don't let it shake you. Don't compromise your beliefs.
- Tell others to prepare. Tell people to expect attacks and a PR war. Tell them to upgrade their security and to be personally ready. Bitcoin will be called all sorts of things: A Ponzi, a fraud, a tool for terrorists, a threat to civilization, and so on. It's not fun to have those accusations hurled in your face, so expect it and get ready for it.
- Prepare for the worst. At some point we may need an alternative to the government-owned Internet. Setting up our own systems will not be hard or expensive, but it will require action on our parts. Learn about mesh networks (PDF) and packet radio. Those who can code should think about writing new high-latency protocols, or reviving old ones like FidoNet.
- Do not rely on Internet exchangers. We should all be grateful to Bitcoin Exchange Mt. Gox and the others, but they are vulnerable and will soon enough be compromised or shut. The future lies with over the counter (OTC) exchangers.
- Keep having fun! Bitcoin has been a gas don't let go of that. Adapt, improvise, overcome! Yes, there will be more bad days from here on, but don't let them steal your joy for any length of time. Hold to the good, reject the fear. Do what resonates within you; do what makes you feel good and creative and productive.
Ed. Note. Paul Rosenberg is the "outside the Matrix" author of Freemans Perspective, a resource of practical insights on topics ranging from Internet privacy and economic freedom to personal development from a libertarian point of view. For more articles like this one, visit our website at www.freemansperspective.com.
http://archive.lewrockwell.com/rosen...erg-p14.1.html
Re: Bitcoin Should Get Ready for an Attack
As far as I am concerned, the PR and MSM attacks on bitcoin have only done one thing to bitcoin and this is knock down the price and give me a chance to "nibble" on it when the price gets knocked down. People who are skeptical about Bitcoin (and crytos in general) and do not completely understand it call it a Ponzi scheme, a scam and a bubble or whatever negative term that is used to falsely describe it. These are also the same people who underestimate the resilience of bitcoin after negative news comes out about it. For example, China is punching bitcoin in the mouth with the news of China banks cracking down on bitcoin/RMB transactions, however, like all of the past negative news that has hit bitcoin, I feel that bitcoin will recover from this recent negative China news. It appears that it might possibly be in the process of doing that right now since it has bounced up from the $339 low that it hit recently. It always seems to recover from bad news. Let's be straight about this.............Bitcoin will NOT go away. The idea of cryptos will NOT go away. As for the OP, even though this is 1 year old, it is still applies today in terms of what is happening right now and I also think that this article in the OP is also saying that people have to be responsible for securing and safely storing their bitcoin since there is no "safety net" from a gov't entity to "save" them if they screw up. The "trial by fire" will continue for Bitcoin (and cryptos in general) for a while longer. This is just my take on this.
Re: Bitcoin Should Get Ready for an Attack
Money, like law, should be easily understood by everyone. If it can't, its a scam. Like contracts or courtrooms where the language of judicial legalese reins supreme. Regular people don't understand the language used by the robber barons, instead, the uninitiated are called "idiots" and "fools". If I pulled you into my field of work, I'm pretty sure a bunch wouldn't grasp what I do. Are you all then "idiots" and "fools"? I think not. Whether cryto's are here to stay or not is irrelevant. What is relevant is that a "new" trading platform is being created to further confuse and fleece the consumer out of his/her wealth. Ridicule away pumpers (though there is not much pumping going on these days, is there?). Hows everyone's profits doing now that BTC is what, $135 or something around that? Btw, isn't BTC old news now? We've got a cold war to fire up and a multitude of other distractions to keep us occupied (missing plane, oh my!)..............
Re: Bitcoin Should Get Ready for an Attack
Quote:
Originally Posted by
Blink
Money, like law, should be easily understood by everyone. If it can't, its a scam. Like contracts or courtrooms where the language of judicial legalese reins supreme. Regular people don't understand the language used by the robber barons, instead, the uninitiated are called "idiots" and "fools". If I pulled you into my field of work, I'm pretty sure a bunch wouldn't grasp what I do. Are you all then "idiots" and "fools"? I think not. Whether cryto's are here to stay or not is irrelevant. What is relevant is that a "new" trading platform is being created to further confuse and fleece the consumer out of his/her wealth. Ridicule away pumpers (though there is not much pumping going on these days, is there?). Hows everyone's profits doing now that BTC is what, $135 or something around that? Btw, isn't BTC old news now? We've got a cold war to fire up and a multitude of other distractions to keep us occupied (missing plane, oh my!)..............
IMO I think that this post is a good example of what the article in the OP is talking about. BTW the current $ price of bitcoin is $420.82 (as I type this post) not the $135 that you stated in your post. As for your line of work, I do not know what you do so I cannot comment on whether or not I can grasp what you do. With that said, I will use the example of mechanical engineer. I work in a different field that is far different from mechanical engineer. If someone pulled me into what a mechanical engineer does, then I will not grasp right away what they exactly do but that does not make me an idiot or a fool. It makes me unknowledgeable about the job of a mechanical engineer and what they do but I could learn it with the right education (4-year college) and the right people who are experienced and know that field very well. In order for me to learn mechanical engineering, I have to have the interest to want to learn it and have an open mind to learn mechanical engineering. Since I do not have the interest and I do not have an open mind to learn mechanical engineering, then I will remain unknowledgeable about that topic but that does not make me an idiot for fool. I guess what I am trying to say here is that I am not calling nor am I implying that people are idiots or fools if they do not know bitcoin and do not want to learn bitcoin. If having bitcoin makes me a pumper, then I guess that I am a pumper even though I am not telling people to invest in it. I am invested in Bitcoin and some alt cryptos and that was my decision to do so. I started reading about it and got interested in it and started putting some money in it. You have a right to your opinion but I have a right to disagree on it. So at this point, we have to agree to disagree on this and move on. People are free to decide for themselves on if they want to get involved on bitcoin or not. Like with anything else DYODD is strongly recommended when it comes to bitcoin or anything else where money is involved.
Re: Bitcoin Should Get Ready for an Attack
^^ Sorry bout the price discrepancy, I was quoting the price stated from this place http://www.bitcoinity.org/markets/mtgox/USD. Point being, BTC pumpers on this site are condescending to "non believers" of this wonderful gift bestowed to us whether you want to acknowledge it or not (go re-read some of the old posts in BTC threads). Btw, the amount of knowledge required to understand the algorithmic game that is Bitcoin requires the same dedication to say, be a brain surgeon or lawyer (and even they only understand so much of a particular thing). You seem pretty bright, but, you know as much as I do how "not bright" the majority is. Worker slaves my friend, not seasoned techies or brain surgeons (otherwise we'd be awash in bullsh*t). The distraction/premonition that is BTC is over for now (not enough takers). To those that wish to benefit from this speculative field, have at er', but I don't favor condescending tactics to sell a product......... My 2 cents.
Re: Bitcoin Should Get Ready for an Attack
Quote:
Originally Posted by
Blink
^^ Sorry bout the price discrepancy, I was quoting the price stated from this place
http://www.bitcoinity.org/markets/mtgox/USD. Point being, BTC pumpers on this site are condescending to "non believers" of this wonderful gift bestowed to us whether you want to acknowledge it or not (go re-read some of the old posts in BTC threads). Btw, the amount of knowledge required to understand the algorithmic game that is Bitcoin requires the same dedication to say, be a brain surgeon or lawyer (and even they only understand so much of a particular thing). You seem pretty bright, but, you know as much as I do how "not bright" the majority is. Worker slaves my friend, not seasoned techies or brain surgeons (otherwise we'd be awash in bullsh*t). The distraction/premonition that is BTC is over for now (not enough takers). To those that wish to benefit from this speculative field, have at er', but I don't favor condescending tactics to sell a product......... My 2 cents.
If I was condescending, them my apologies. It was not intentional. I will admit that as a newbie to Bitcoin and to cryptos, there are some things about Bitcoin (algorithmic knowledge) that I do not understand and will never understand since I am not a real computer geek. I also wanted to be clear here that I am not making any recommendations on buying bitcoin. While I like the idea of Bitcoin and cryptos in general, I will not be able to know everything about it especially some of the technical aspects of it. I am learning as much as I can as I go from reading from other places online. This is all interesting to me and that is why I put some FRN's in to Bitcoin and other alt cryptos. Also, I do not like going "all in" on Bitcoin and cryptos or anything else in general that I consider a speculative investment. This is just a spectulative investment for me. Some of that is beyond my paygrade and I will admit defeat in that. I will read more of the older posts on this thread since, before recently, it has been about 15 months since I posted here. If it is like it is on GIM2, then I am used to it since there were some destructive and abusive back and forth on bitcoin related topics on GIM2 between the "cheerleaders" and the "non-believers". Bashing each other on Bitcoin or any other topic does no good regardless of where a person stands on it.
Re: Bitcoin Should Get Ready for an Attack
Quote:
Originally Posted by
1970 silver art
If I was condescending, them my apologies. It was not intentional. I will admit that as a newbie to Bitcoin and to cryptos, there are some things about Bitcoin (algorithmic knowledge) that I do not understand and will never understand since I am not a real computer geek. I also wanted to be clear here that I am not making any recommendations on buying bitcoin. While I like the idea of Bitcoin and cryptos in general, I will not be able to know everything about it especially some of the technical aspects of it. I am learning as much as I can as I go from reading from other places online. This is all interesting to me and that is why I put some FRN's in to Bitcoin and other alt cryptos. Also, I do not like going "all in" on Bitcoin and cryptos or anything else in general that I consider a speculative investment. This is just a spectulative investment for me. Some of that is beyond my paygrade and I will admit defeat in that. I will read more of the older posts on this thread since, before recently, it has been about 15 months since I posted here. If it is like it is on GIM2, then I am used to it since there were some destructive and abusive back and forth on bitcoin related topics on GIM2 between the "cheerleaders" and the "non-believers". Bashing each other on Bitcoin or any other topic does no good regardless of where a person stands on it.
You play a good middle man, both here and the other place regarding your stance on BTC. If you understand its speculative investing, then good and enjoy the adventure. Also, my comments on the condescending nature of certain posts does not necessarily mean "you".......
