Quote from: repentance on September 05, 2012, 01:52:35 AM

Quote from: exdirrk on September 05, 2012, 01:22:57 AM

Quote from: bitcoin.me on September 05, 2012, 01:12:44 AM

The only people profiting from bitcoin are hackers. Fuck this shit.

I haven't lost anything yet from bitcoin but it does seem like hackers are just having a field day with it. As much as everyone hates Mt.Gox because of the cost to put money on there and the loss of anonymity, it seems like they have the best methods on there. I feel like bit floor should have known better than to have all of their coins in a hot wallet after btc-e and other hacks.

Exchanges are damned if they do and damned if they don't. People want the convenience of being able to do instant withdrawals and transfers without any of the risk.

Small Bitcoin services which hold large amounts of other people's BTC are hacker magnets and intruders know that such services are often one or two man operations without capital reserves to invest in infrastructure. They're soft targets. Security needs to be baked in from the day a service is created but many Bitcoin services are more concerned about rushing to market than they are about security (they probably tell themselves they'll invest in "proper" security once the profits are rolling in, not realising that a rapidly expanding business often makes little or no profit).

Until Bitcoin service providers lift their game security-wise, people should severely limit the amount of BTC they store on such services. Bitcoins stored on a service are always at risk. You accept the risk of them being lost or stolen by leaving them on deposit with a service.

Take a look at Open Transactions and help us make it more accessible to people.

I notice this case is yet another Linode case, is there any reason to think there was any real vulnerability other than the fact of being hosted by a third party instead of being a server physically controlled by the operator of the service?

-MarkM-