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The bitcoin week in review: Panic! At the Bitcoin!

Buttcoin

The bitcoin week in review: Panic! At the Bitcoin!

Buttcoin bitcoin, bitomat, buttcoin, crash, done, end, finished, mt. gox, tradehill 3 Comments August 6, 2011

In case you haven’t heard, this last week has been a very busy and very eventful week for bitcoin. For some reason a regulation-free market just isn’t working out. Here’s what’s happened.

 

  1. Dwolla started spitting out money like a broken ATM. Dwolla, one of the largest USD -> Bitcoin payment processors used by Mt. Gox and Tradehill, had done chargebacks on behalf of their users against the markets. This was not supposed to be possible as bitcoin transactions cannot be reversed and therefore the users got the bitcoins AND the cash. Tradehill states they lost about 37k, but Mt. Gox denies any chargebacks, which is highly unlikely considering they are 10x bigger than tradehill. If Mt. Gox did suffer chargebacks, then would be around $1mil in the hole, making them insolvent at this point.
  2. MyBitcoin, the largest online “bank” for bitcoins, simply vanished from the net. They have been around for quite a while but have always seemed a little shady. Like, having a private whois on the domain and using parts of their website through the Tor network. Despite all this, a very large amount of people had their wallets in MyBitcoins, including Bruce Wagner, the owner of OnlyOneTV, producer of “The Bitcoin Show” and hosting the Bitcoin Conference who personally lost 25k bitcoins ($250k USD). Ironically, the 3 restaurants accepting bitcoins as payments also stored their wallets in MyBitcoin. The FBI was notified (lol), but the owner is believed to be living in Barbados currently but there’s no chance in hell anyone will or care to find him.
  3. Bitomat.pl, the largest Polish bitcoin exchange and 3rd largest exchange in existence, is run by an incompetent CIS major. He hosts the entire exchange on an Amazon EC2 server made for quick CPU calculation projects and decides against the $10/ for persistant storage. In the process of upgrading the RAM on the service, he apparently does not understand that it will restart the instance, wiping the storage portion clean and losing everyone’s wallets in an instance. Of course this exchange had no backups (which that $10/mo would have handled with multi-distributed backups). The exchange ended up losing over 17,000 BTC and is currently up for sale to pay back the people who lost their coins. As to who is going to pay $200,000 to buy an exchange with no customers, no traffic and no income is beyond me.
As a result, the price of bitcoins has tanked. BTC started around $12.50 on Tuesday and is currently under $8, with no sight of slowing down. I don’t think it’ll be a quick crash, but I think we’ll be looking at a long, drawn out slide to >$1 rates.
On the plus sides, there should be a glut of cheap video cards hitting eBay very soon.

Buttcoin

Bitcoin mining for fun and net loss

Buttcoin article, bitcoin, buttcoin, funny, humor, miner, rigs, slactory 0 Comment August 4, 2011

Slacktory has a great article today, written by Ogashi of Bitcoin Mining Accidents, detailing a bit of history of bitcoins, recent events and how we got here today.

The good news is that to begin bitcoin mining, you don

Your new buttcoin .gif for the day.

Buttcoin

Your new buttcoin .gif for the day.

Buttcoin bitcoin, bubble, burst, bust, buttcoin, crash, funny, gif, image 0 Comment August 3, 2011

Bitcoin price tanks below $10

Buttcoin

Bitcoin price tanks below $10

Buttcoin bitcoin, bubble, burst, bust, buttcoin, crash, drop, fail, money, terrible 2 Comments August 3, 2011

How long has it been since we’ve seen $10? Before the bubble?

And speaking of which, here’s the chart for the last 4 months.

Not looking good here folks

 

 

Another bitcoin crash is in effect

Buttcoin

Another bitcoin crash is in effect

Buttcoin bitcoin, bubble, burst, bust, crash, fail 2 Comments August 2, 2011

 

Watch it live here: http://bitcoincharts.com/markets/mtgoxUSD.html

Buttcoin

The greatest buttcoin story ever told

Buttcoin beatdown, bitcoin, buttcoin, dumbass, eat, fail, gross., shit 2 Comments July 29, 2011

No commentary for this one.

2 days ago I was delivering a USB stick with an GPG encrypted wallet to a customer for exchange. I wanted to do the delivery the next morning when I was going be in their part of town anyway but the customer insisted they needed it right away and I kinda owed them the favor of an after midnight delivery to the nightclub they worked at. No biggie, I’d couriered other packages to them there so I thought it was cool. Plus, they were gonna let me slide another week on a payment I owed them.

Anyway, the parking lot was full and I had to find a spot around the corner in the underground parking lot of a nearby business. I’ve blown too much money in that club on booze and women and squandered lots more on pool games, so to remove all temptation I left my wallet in my car and headed out with just my keys and the USB stick in my pocket. Because the street level is reserved for emergency vehicles and monthly paid parking, I had to go down two levels to find a spot. I parked near the elevators and noticed a couple of shady dudes hanging out near the stair well on the other side of the garage, smoking blunts and throwing bones. Oh, well, I’ll only be a minute. wallet and ride should be fine I think as I head to the elevators. I can prolly get one of the bouncers to walk back with me and the bundle I’ll be taking for the BTCs.

Turns out, the elevators are shut off that late at night. I gotta walk past the guys rolling dice at the stairs who are polite enough to tell me they shut the elevators off at 11pm as keep a brisk pace for the stairs.

About half-way up to the exit, through the long echoing concrete stairwell, I hear the more bleary-eyed of them asking in loud drunken slur what I’m doing in here this late and then something like “yeah let’s check it out”….I can hear them coming up the stairs.

I panicked. If I had my wallet on me I might be able to bribe them off with the $100 or so that’s in it, but all I’ve got on me is my keys and this USB stick that’s worth close to 10 large and my customer getting antsy at the other end. I start running for the next flight of stairs to the alley exit….when fuck me if one fast little bastard hasnt made it all the way around and is coming through the door above me with 2 more coming from below.

I knew they would shake me down and I had visions of them stealing the USB or worse, smashing it rage because I didnt have the blow or cash or whatever they were hoping to find. I didnt know what to do but I knew I had to do it fast….I swallowed the USB.

It barely made it down and was gagging me as it tried to make it’s way back up….they didnt know what to think. I think they thought I was having a seizure or something and just split as I stood there clutching the handrail and spewing out gobs of stringy spit as the jagged USB stick kind just hung there in what felt like the middle of chest.

Anyway…to make a long story short, I finally made it into the bar and had to belt down a couple of beers while I told my customer to fuck off for making me come out here so late with such a shitty neighborhood around. I told him he could have his BTC once it passed and that there’d be an extra 10% if that didnt happen before Wednesday.

The problem is, it hasnt passed. I’ve been shitting into my bathtub and put a big screen over the drain to catch the USB while washing it all down, but nothing. I’m fucking sick of Total cereal and prunes and had enough coffee to keep an interstate truck driver awake for 2 days. Nothing. I’m starting to worry the stick is dissolving inside me at this point.

I went to the emergency room and told them I think I swallowed something bad but didnt say what. maybe a battery or something. They took 5 hours to decide to take xrays and….nothing. They gave me some laxative and said to check back with my regular doctor.

I’m so screwed. The customer thinks I’m lying to him and the guy who I’m delivering for is equally sure I’m fucking him over. At this point if I dont get the 500BTC to my customer in the next 3 days I’m not going to have an ass to shit anything out of.

Can anyone please help me?

 

Buttcoin miner sacrafices self to save pet ferret.

Buttcoin

Buttcoin miner sacrafices self to save pet ferret.

Buttcoin accident, buttcoin, die, fail, ferret, heat, stroke 2 Comments July 8, 2011

Bitcoin forums member sharuku is killing him/herself, literally, in the name of bitcoins. But at least the ferret is happy.

 

happy as a ferret or something

Found via the wonderful Bitcoin Mining Accidents site.

A list of things you can buy for buttcoins

Buttcoin

A list of things you can buy for buttcoins

Buttcoin bitcoin, buy, condoms, gross., peanuts, purchase, slim jims, store 1 Comment July 4, 2011

I prefer strawberry myself

I prefer strawberry flavored myself.

Oh the humanity!

Buttcoin

Oh the humanity!

Buttcoin bitcoin, butc, crash, fail, terrible 0 Comment June 30, 2011

 

I like to imagine that’s a mining rig in the back there.

Hey Buttcoin miners, show us your mining rigs!

Buttcoin

Hey Buttcoin miners, show us your mining rigs!

Buttcoin basement, bitcoin, computers, dirty, disgusting, hovel, mining, poor, rigs, shun 5 Comments June 27, 2011

Let’s see what you got!

 

 

On second thought, keep that shit to yourself.

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