full member
Activity: 150
Merit: 100
I haven't lost any yet.. but I also haven't entrusted my bitcoin's to anyone but myself.
Here is a few tips for people that may not be obvious to some.
#1. Keep your computer updated, and if it has EVER been infected with any viruses please know that it is no longer trustworthy, even if it scans clean. Todays viruses are some of the nastiest buggers ever, and not even some of the most sophisticated virus software is able to remove them. They hide themselves within unused tracks on your hard drive, they rewrite your master boot record, they replace core system files to cloak themselves, they install themselves as SSL certificate authorities, and some have been known to REFLASH YOUR VBIOS (rare but it has been done and IS possible)! Doing ANY kind of financial transactions on a system that has ever been compromised is probably a bad idea, take the time to clean / reinstall / resecure your computer properly. Did you know that if your Java 6 JVM is older then the latest "Update 26" that your machine can be made to execute ANYTHING without a prompt just by clicking the wrong URL?!
#2. When using bitcoin why not consider keeping your data folder & wallet.dat in a different path than where it gets installed by default? You can launch the bitcoin client with the datadir option. bitcoin -datadir="path to your bitcoin data folder" I like leaving a wallet.dat in the default location with only 1/2 a bitcoin in there as sort of a "Canary in a coal mine." If you have a significant amount of bitcoins, why not consider purchasing an IronKey? I can use my IronKey on any computer, Windows, Mac, or Linux. The Ironkey also has built in Backup Software that is able to backup all of your data in an encrypted format to your hard drive. If you lose your ironkey, it is protected by HARDWARE encryption that will perform a full data wipe if it receives 10 wrong passwords. If the worst happens, you can restore one of your encrypted backups that the ironkey makes on to the same ironkey, or a new one if lost or stolen, as long as you know your password you have your data!. Granted.. once the ironkey is unlocked it mounts the data in an unencrypted format, but also remember the fact that the bitcoin data is now running from a non-standard path, which is just a simple form of protection, but it seems to work. Heck, even if I had my bitcoins at the bank in a safety deposit box, I would still use an IronKey.. for under $100 its a small price to pay.
#3. Create an address that is NOT online, print the wallet.dat file with "PaperBack", put it on a thumb drive, CD-ROM, whatever.. Transfer coins there for security. Don't keep all of your eggs in one basket, or in this case, bitcoins.
I hate seeing ANYONE get hurt, financially or otherwise. I'll admit that its easy to make a mistake, and these kind of things could happen to the best of us. But lets face it, many of the major losses were due to poor judgement on the wallet holders fault, and they will all admit it openly. Many of them HAVE NOT practiced some of the basic common sense strategies for protecting their bitcoins, they chose to entrust their untraceable and anonymous bitcoins to the cloud, to dropbox, and even worse to parties who themselves were also anonymous and untraceable. Some of these large bitcoin holders obtained these coins as early adopters by mining them before anyone else was into the game. Anything is possible actually and maybe nothing is as it seems... Heck, for all I know, "Losing Bitcoins" could be used as a pretty good tax shelter. If someone has 1/2 million in bitcoins are they a taxable commodity, well not today at least until they are converted to fiat. But what about the exact opposite, if you buy bitcoins with fiat and "Lose them" would that be considered a financial loss, or a write off? It's unknown to me as I'm not an accountant. Luckily I'm not in this for greed, or to become rich.. I like technology and I find this to be an interesting project with some great really smart people involved...
Its unfortunate that bitcoin has such a big target on its back, but what did everyone expect? Bitcoin has been under attack since it started becoming more mainstream, not only by hacker theives wishing to steal bitcoins since they are untraceable, but possibly also by other more organized operations wishing to discredit the project as a whole, as it is a threat to them. It's a true shame that this community can't come together and be stronger than those that would wish to ruin one of the coolest open source projects I have seen in a long time.
Rise up bitcoin and be strong!