Well it was stolen not lost...
$7.5B In Stolen Bitcoin from 2016 Bitfinex Hack has just been moved
131–140 of 281 posts
Re: $7.5B In Stolen Bitcoin from 2016 Bitfinex Hack has just been moved
#132Earlier quoted context omitted.
The price of bitcoin will plunge to 0 if that happens, which is the reason why it won't.
The new breed of users doesnt care at all about such things. Usually the price goes up as it becomes less cypherpunk and more of a regulated surveillance instrument - speculators will argue that it increases legitimacy and encourages institutional investment. It will still be a scarce asset that hedges against inflation
You're missing that for this to work, miners, those who invest into processing bitcoin transactions, would be willingly lowering the value of what they do. Other comments bring issues they'd already face in cost trying to adopt banning more transactions. But if they accepted those costs, bitcoin's reputation of stability and trust would be broken, if 1 BTC = 0.75BTC because .25 was from tainted transactions, nobody wants to risk that happening to them so they'd abandon quickly and the price would plummet. But if the price would plummet then miners would be inclined to do the opposite to avoid that happening.
Re: $7.5B In Stolen Bitcoin from 2016 Bitfinex Hack has just been moved
#133Earlier quoted context omitted.
They could just setup their own Bitcoin tumbler
Tumbling on bitcoin doesn't work like it used to a few years ago. There are now multiple companies dedicated to blockchain tracking and analysis. All coins coming from tumblers are flagged. It's possible because the bitcoin blockchain is public and every balance and transaction is visible to the whole world. Many exchanges refuse to accept coins that have passed through a tumbler. If you attempt to deposit these coin…
So if someone buys a stick of gum from me after taking rent money from a tainted BTC address, I get flagged?
Re: $7.5B In Stolen Bitcoin from 2016 Bitfinex Hack has just been moved
#134Are they tryin' to send some sort of subtle signal, given the Coinbase listing today? :)
The all time high was also earlier today.
Re: $7.5B In Stolen Bitcoin from 2016 Bitfinex Hack has just been moved
#135Earlier quoted context omitted.
Tumbling on bitcoin doesn't work like it used to a few years ago. There are now multiple companies dedicated to blockchain tracking and analysis. All coins coming from tumblers are flagged. It's possible because the bitcoin blockchain is public and every balance and transaction is visible to the whole world. Many exchanges refuse to accept coins that have passed through a tumbler. If you attempt to deposit these coin…
So if someone buys a stick of gum from me after taking rent money from a tainted BTC address, I get flagged?
Currency of the future
Re: $7.5B In Stolen Bitcoin from 2016 Bitfinex Hack has just been moved
#136Re: $7.5B In Stolen Bitcoin from 2016 Bitfinex Hack has just been moved
#137Earlier quoted context omitted.
This isn't so far fetched. Cash registers already have Internet connections and can be outfitted with cameras to record all bills going in, except maybe those inserted in a stack. And ATMs might already be recording serial numbers of dispensed bills. Essentially they might/could do with currency what they do with license plates, which is track where everything goes and at what times.
ATMs might already be recording serial numbers I've been wondering about this forever. Say John gets bills from the ATM then pays dealer Dylan for weed. Dylan then buys a beer at a bar. If Dylan gets convicted, and banks collaborate with the police, then John gets subjected to - at least - parallel reconstruction.
Plausible deniability wrecks that entire thesis (someone existing between John and Dylan such as a gas station)
Re: $7.5B In Stolen Bitcoin from 2016 Bitfinex Hack has just been moved
#138Earlier quoted context omitted.
I wonder if they could somehow collect interest off it anonymously. I read about certain coins offering staking, but not sure how it works and if it's possible to collect interest without revealing your identity.
No one is going to pay you interest unless they can use your deposit while they are doing so (loaning it out to others at a higher interest rate)
Decentralized exchanges would be able to do all of the above.
Re: $7.5B In Stolen Bitcoin from 2016 Bitfinex Hack has just been moved
#139Earlier quoted context omitted.
Tumbling on bitcoin doesn't work like it used to a few years ago. There are now multiple companies dedicated to blockchain tracking and analysis. All coins coming from tumblers are flagged. It's possible because the bitcoin blockchain is public and every balance and transaction is visible to the whole world. Many exchanges refuse to accept coins that have passed through a tumbler. If you attempt to deposit these coin…
So if someone buys a stick of gum from me after taking rent money from a tainted BTC address, I get flagged?
It only takes a few exchanges refusing to flag coins and the whole flagging system fails.
The bad money gets mixed with the good in the exchanges wallet, and sent to random people...
Re: $7.5B In Stolen Bitcoin from 2016 Bitfinex Hack has just been moved
#140Earlier quoted context omitted.
There's a difference between pools not accepting txs in their mempool, and pools refusing to build on other miners' blocks that contain them. Pools are beginning to do the former (which doesn't cost them), not the latter (which would cost them dearly). Only if a majority of hashpower does the latter will censoring be effective (and then no longer cost them again).
A hashpower majority is not needed. For the latter, if a single digit percentage of the hashpower decides to enforce the ban, other miners in the network have an economic incentive to join the ban as well. The reasoning is explained here https://juraj.bednar.io/en/blog-en/2020/11/12/how-could-regu... In short, if a miner chooses to include banned transactions in its block, it means that block cannot be built off of b…
Who gets to determine which addresses are "poisoned"? China? The US? I have to imagine the ideologues in the bitcoin community will fight back against that. Also, not being censorable is a big part of bitcoin's value prop so this type of regulation would likely crash the price as well.