Bitcoin cyberattack a big warning to users
A massive cyber attack from unknown sources that has been spamming bitcoin exchanges is highlighting some of the dangers people can encounter when they exchange cash for digital currencies like the bitcoin, experts said on Wednesday. Ref. Source 6
'Face behind Bitcoin' hires lawyer
The man Newsweek claimed is the creator of bitcoin has hired a lawyer in an attempt to clear his name, repeating a denial he made to The Associated Press more than a week ago that he has never had anything to do with the digital currency. Ref. Source 4
I still don't get how anyone can invest in something so unstable as virtual money. It is one thing to have a merchant handing the real money for you and a whole other thing to be counting electronic money.
Bitcoin isn't a whole lot different than a USD. There is nothing that actually backs up either currency. The major differences are that if you put your USD in a bank, the FDIC automatically insures abou 250,000USD of your deposit. The government of the US can sell bonds to help keep your USD investment solvent. But basically, there is nothing that the USD is backed by other than the faith of the US Government. Bitcoin to me feels move like a ponzi scheme in that there is absolutely nothing other than the faith in bitcoin that keeps it afloat. So once someone that made millions wants to cash all their profits, if it triggers an avalanche of investors that want to cash out...bitcoin goes bust. There are no protections. However, if you got in on the bottom level, there are people that have made millions off a small initial investment. Sounds exactly like a ponzi scheme to me.