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Topic: Connecting a few dots (Read 4723 times)

legendary
Activity: 1218
Merit: 1000
June 20, 2011, 04:20:11 PM
#46
You're taking things out of context. That reply wasn't for you, but to TraderTimm who seams to believe my previous statement about the oddity of 10 blocks to be solved in a row was some hack attempt.

Also I found amusing your attempts to degenerate all my arguments to your wishful thinking based on a single spot I might get wrong. Yet what proves coins leaving MtGox is the outstanding enormous amount of transactions at that time entering the blockchain.
hero member
Activity: 504
Merit: 502
June 20, 2011, 04:17:30 PM
#45
Proof of hack attempt?!  Shocked

You guys need to chill out, this isn't hacking allover the place.
Just a strange variance, that's it, and it happened during a heavy load of transactions... but, hey, maybe they connected K to the btc network to go on a test run...  Roll Eyes

I think we are all communicating with a different subset of English because you STARTED this thread with your conspiracy that the hacked accounts influenced the market movement up to this date. You even used a timespan of 2months ago.

Now you revert and excluding mentioning hacking? quote: "You guys need to chill out, this isn't hacking allover the place."

I give up trying to communicate with you from this point onwards, atleast until you decide to communicate in universal english.
legendary
Activity: 1218
Merit: 1000
June 20, 2011, 03:56:06 PM
#44
Proof of hack attempt?!  Shocked

You guys need to chill out, this isn't hacking allover the place.
Just a strange variance, that's it, and it happened during a heavy load of transactions... but, hey, maybe they connected K to the btc network to go on a test run...  Roll Eyes
legendary
Activity: 2408
Merit: 1121
June 20, 2011, 03:37:05 PM
#43

I salute you.  Most people can't pack this many errors into such a small post.

Good point, kjj. I have never seen anyone use generation variance as 'proof' of a hack attempt.

Guess it is like a kid shoving a sandwich into a DVD player, just because we wouldn't consider it - doesn't mean they won't try Smiley
kjj
legendary
Activity: 1302
Merit: 1026
June 20, 2011, 02:52:27 PM
#42
Solving the blocks that way may had been a way to use an eventual surplus on computing power from the bitcoin network.

If you notice the two to the left, they look like at the normal block solving heartbeat.
During the attack you've 2 blocks being generated simultaneously, than 3 (at least, the amount of trades cover it up) and in the end 5.
At the same time it looks like party time in the transactions entering the blockchain. This denotes a co-relationship between demand and supply.

May things happened in that time frame worthing a look at, being obviously the most urgent MtGox's issue.

I salute you.  Most people can't pack this many errors into such a small post.
legendary
Activity: 1218
Merit: 1000
June 20, 2011, 02:45:29 PM
#41
Solving the blocks that way may had been a way to use an eventual surplus on computing power from the bitcoin network.

If you notice the two to the left, they look like at the normal block solving heartbeat.
During the attack you've 2 blocks being generated simultaneously, than 3 (at least, the amount of trades cover it up) and in the end 5.
At the same time it looks like party time in the transactions entering the blockchain. This denotes a co-relationship between demand and supply.

May things happened in that time frame worthing a look at, being obviously the most urgent MtGox's issue.
hero member
Activity: 504
Merit: 502
June 20, 2011, 02:37:08 PM
#40
There's a limit of transactions a block can contain I know you can solve empty blocks, but the spike on demand created a spike on supply.
This is actually an unforeseen event, would be interesting, when the dust settles, to study this behavior and its influence in the blocks generated on. I would believe in "chance" if it was 2 or 3, but I count there 10 blocks during the attack and then the 2 following solved blocks appears to be what it does regularly.

I'm sorry to say you're confused about how the bitcoin block system works.  Yes, there is a size limit (entirely arbitrarily set), but once that limit is reached it doesn't somehow make solving a block magically easier.  The excess transactions just have to wait.

Think about it: if it were possible to artificially increase the rate of block production in any way then the entire proof-of-work system that bitcoin relies on for its security would be broken.

The transactions are not conceptually part of the blocks; the block stores one hash that represents any number of transactions.  One number.  That's it.

It's better to think of the transactions as a block of random binary bytes that the block system timestamps.
legendary
Activity: 1218
Merit: 1000
June 20, 2011, 02:08:16 PM
#39
Block production does not go up because there are more transactions pending.  Unless you think the hash rate of the network suddenly shot up at the exact moment of the heist?

It's just chance that five were made close to each other.  If one miner accepted all of the transactions that happened around the disaster, then they were all in the first block, the following four were completely redundant.

There's a limit of transactions a block can contain I know you can solve empty blocks, but the spike on demand created a spike on supply.
This is actually an unforeseen event, would be interesting, when the dust settles, to study this behavior and its influence in the blocks generated on. I would believe in "chance" if it was 2 or 3, but I count there 10 blocks during the attack and then the 2 following solved blocks appears to be what it does regularly.
legendary
Activity: 1218
Merit: 1000
June 20, 2011, 01:33:34 PM
#38
Q1: Most likely
Q2: Probably not, MtGox was just one exchange, the others will hold its value for a while. My best guess would be a meeting point around 6~7, depends on how long they can stand the inflated btc value.
hero member
Activity: 504
Merit: 502
June 20, 2011, 01:31:30 PM
#37
I'm not betting, this is an apocalyptic hypothesis, but still sustainable by the available data.
And no, I'll NOT be happy if I'm right. Being a pessimistic I'm used to be happy when I'm wrong.

Just by looking at the monitor, I can count 10 blocks solved (maybe more, they're hiding under the trade dots) during the attack. This means the blockchain was on fire with so many transactions going on. And the blockchain doesn't move because there was a trade at MtGox, it moves because someone was inputing a huge load of transactions to it.

Block production does not go up because there are more transactions pending.  Unless you think the hash rate of the network suddenly shot up at the exact moment of the heist?

It's just chance that five were made close to each other.  If one miner accepted all of the transactions that happened around the disaster, then they were all in the first block, the following four were completely redundant.
legendary
Activity: 2408
Merit: 1121
June 20, 2011, 01:28:53 PM
#36
Okay, this is like nailing jello to a wall trying to get an answer out of you, but here's one more try.

Do you think Mt.Gox will fail:

A) Yes

B) No

Do you think the BTC/USD rate will be at 5 or lower 24 hours after Mt.Gox re-opens?

A) Yes

B) No

Time is ticking away, let us know...
legendary
Activity: 1218
Merit: 1000
June 20, 2011, 01:25:08 PM
#35
Looking at that piece from the blockchain my best guess would be it to be depleted or nearly depleted and replacing bitcoins with phoony coins to run in fractional-reserve-like for a while in an attempt to restore the lost income.
Due to the confidence lost this is most likely to fail. Time will tell...

Sorry if this doesn't cheer you up guys, keep in mind this is ONLY a theory. And if nothing else helps, maybe they sell Prozac at SR.
legendary
Activity: 2408
Merit: 1121
June 20, 2011, 01:19:51 PM
#34
I'm not betting, this is an apocalyptic hypothesis, but still sustainable by the available data.
And no, I'll NOT be happy if I'm right. Being a pessimistic I'm used to be happy when I'm wrong.

Just by looking at the monitor, I can count 10 blocks solved (maybe more, they're hiding under the trade dots) during the attack. This means the blockchain was on fire with so many transactions going on. And the blockchain doesn't move because there was a trade at MtGox, it moves because someone was inputing a huge load of transactions to it.

Okay, so tell us what your stance is. (Before Mt.Gox opens.)
legendary
Activity: 1218
Merit: 1000
June 20, 2011, 01:11:12 PM
#33
I'm not betting, this is an apocalyptic hypothesis, but still sustainable by the available data.
And no, I'll NOT be happy if I'm right. Being a pessimistic I'm used to be happy when I'm wrong.

Just by looking at the monitor, I can count 10 blocks solved (maybe more, they're hiding under the trade dots) during the attack. This means the blockchain was on fire with so many transactions going on. And the blockchain doesn't move because there was a trade at MtGox, it moves because someone was inputing a huge load of transactions to it.
legendary
Activity: 2408
Merit: 1121
June 20, 2011, 01:07:28 PM
#32
Actually, by the previous trend I would believe it's price to be around 5 by now.
Still, if I'm right, not even by creating a "fractional-reserve" MtGox will be able to stand up again.

So, yes or no?

Your stance is Mt.Gox fails, and the price stays at 5.00 BTC/USD?

Really, go on, we want this on the record before they re-open.
legendary
Activity: 1218
Merit: 1000
June 20, 2011, 01:01:32 PM
#31
Actually, by the previous trend I would believe it's price to be around 5 by now.
Still, if I'm right, not even by creating a "fractional-reserve" MtGox will be able to stand up again.
hero member
Activity: 504
Merit: 502
June 20, 2011, 12:42:35 PM
#30
Ok, I will play into your conspiracy game for the heck of it.

Once mtgox goes live and the price wasnt meant to be around 17.50 at this time, I am sure the price will suddenly just go down to about $1-$2 where it hanged about 2months ago.

If this doesnt happen, I will give you atleast a freeroll of 7days, then can we atleast agree you are full of shit and a conspiracy hog?

legendary
Activity: 1218
Merit: 1000
June 20, 2011, 12:37:40 PM
#29
the $1000 limit withdrawal applied to BTC so why would they convert USD to BTC only to be limited from cashing out?

The 1k limit applies to both, USD and BTC. It's 1k USD or BTC equivalent. Besides to withdraw USD you would need to do it to LR or Dwolla, leaving a trail. BTC just "uploads to network".
The lost of liquidity would take a while to kick him if you use dormant accounts, from long-mid term investors.

@DamienBlack

Look at the blockchain. Even 5 blocks were solved in a row right after the incident. It's hard to tell if the robber had 1 or 1000 accounts and how much was the damage. MtGox's covered in secrecy.



Bottom line: You're all assuming that the hacker was dumb, just grab the db and wrecked the place. I'm putting to THEORY he could run this for a while until see himself cornered and wrecked it up.
legendary
Activity: 1764
Merit: 1002
June 20, 2011, 12:25:02 PM
#28
Ok, the new ones are crypt MD5 salted hashes. But 2 months ago they were all plain MD5 unsalted.

Let me try to go more descriptive here, to see if you understand my line of deduction:

Notice there the evolution in the prices 2 months ago:



My theory goes around that by such time MtGox's db was already compromised.
At this point the hacker would start to get pwds and entering some accounts to check its users' activity. Allowing him to sort some dormant accounts with credit. Those with BTC on it were probably just wiped out, those with USD the hacker used it to buy BTC (bringing the price up this way) and later cashed out the BTC resulting from those trades.
Some of those users started to complaint to M'Tux who decided to implement his crypt(pass,salt) function. Up to this point, and up to yesterday M'Tux was most likely believing it was about users' giving away their passwords not his site fault.

Lately the thief tripped some wires or the legit owners checked their accounts making a load of requests to MtGox who came forward and put that thread on the forum. Seeing this, the robber decides to go on his final blow... and here we are.

the $1000 limit withdrawal applied to BTC so why would they convert USD to BTC only to be limited from cashing out? 

your theory is crazy.  stealing either USD or BTC from mtgox would have resulted in a FALL in the price of BTC as liquidity was being stolen out of mtgox, not the other way around.
hero member
Activity: 504
Merit: 502
June 20, 2011, 12:05:41 PM
#27

This is plain bullshit, and this is the point that made me believe more how untrustworthy mtgox is, by staging he just lost 100 or 200 btc, whereas the blockchain and people lucky enough to buy those cent bitcoins and withdraw them claiming here to have withdraw it with success. Losses are certainly way above the 1K USD. If it was for 1K, mtgox would be open by now.

In order to withdraw them they would have had to be active during the 20 minutes after it happened (all of those orders were there before the sell off, no one could get in orders during the sell off) and during that time mt gox's website was moving at a crawl. On top of that, there is a $1000 withdraw limit. I know, from experience, that this withdraw limit is based on the 24 day weighted average. At the end of the sell off that average was about $4, or about 250 bitcoins.

So if 50 people got to withdraw the full 250 bitcoins that they didn't have in there account before the crash, then mt gox will have to cover 12,500, or about $150,000. The daily volume lately has been around $400,000. Mt gox gets about 1.3% of that $400,000, or $5,200 a day. That means that this incident cut in a little bit to this months profit.

We know mt gox has over 400,000 bitcoins on hand (it is right there in the block explorer), so even if they don't have money to cover it, and go on a sort of "fractional-reserve", the fraction would be almost 1. (400,000-12500)/400,000 = 0.96. That just isn't a worrisome fraction. And even if they take a 70% hit in volume, they will be able to make up that fraction in a month or two.

EDIT Where are the people claiming to withdraw with success? I know they didn't withdraw anything huge like the 260,000 that went for a penny, because I would see that in the block explorer.

BCemporium said exactly how he handles his facts, by _speculation_

He isnt interested in sensible analysis that you provided above however hyped up propaganda conspiracies is the order of his day.
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