Silk Road 2.0 Hacked, All The Silly Bitcoins Vanish, Defcon Whines About Thieves

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$2.7 million-worth of Bitcoin stolen as successor to dark web market place Silk Road is hacked and all the precious funny money users wanted to use to do mainly drug deals and nefarious things has vanished, most likely, by government hackers.  Bitcoins are useless for anything except collecting between fans and illicit purchases since anyone can sell these bit thingies to other delusional guys and then buy things with real money so why use it for commerce especially when the market value vacillates all over the place and no one knows unless they consult minute by minute, what it is worth.  And the one receiving the bitcoins can see value plunge by up to 50% in a short time frame so holding is very dangerous.

 

After opening only a few months ago, Defcon, the guy running the new site boasted about how sales of illegal drugs will resume and how happy this is for everyone.  But then Silk Road 2 Hacked, All Bitcoins Stolen – $2.7 Miliion | Deep Dot Web which collectors and users valued at $2.7 million.  Here is what Defcon has to say:

 

I am sweating as I write this.
Christmas brought grave news. I cannot adequately express how deeply honored I was by your unconditional support of my staff.
I do not expect the same reaction to today’s revelations. This movement is built on integrity, and I feel obligated to be forthright with you.
I held myself to a high standard as your leader, yet now I must utter words all too familiar to this scarred community:
We have been hacked.

 

Defcon, a guy who uses a fake name to hide his identity, claims ‘I will take full responsibility’ but I doubt this includes paying back everyone with new bitcoins.  He also childishly hopes the thief will return the coins after thinking hard about what a lovely community the bitcoin users are.  Which is really funny since it is all about greed and basically cheating everyone in the first place.

 

Funnier still is that Silk Road 1.0 was also scammed.  Defcon has a low learning curve as do the followers of this mania.  Recently, these Fla. twin brothers sentenced in murder of reporter  over fantasy cards worth $100K.  These cards are ‘valuable’ but only to collectors.  There is nothing mysterious or moral about Magic the Gathering Prices.  The publisher of these cards simply doesn’t print many ‘valuable’ cards so fans can sell these to each other for insanely high prices.

 

1 Alpha Underground Sea H02 Land RARE MTG Magic The Gathering Card | eBay is selling for $2, 372.73.  It is literally ‘swamp lands’!  Cool!  The greedy collector wants a lot of loot for this rather plain Jane piece of cardboard.  ‘I will fight…the greedy bastards’ who stole the silly bitcoins swears Defcon.  The new Silk Road 2.0 site ran for less than three months before being destroyed by a ‘hacker’ who was most likely working for the FBI, I would venture to suppose.

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The man running the Silk Road 2.0 so disastrously called himself Defcon after this:  DEF CON® Hacking Conference – Recent News.  This web page looks like it was designed back in 1995.  Talk about conservative!  HAHAHA.  Note the skull and bones at their website’s URL.

 

Bitcoin value tanks again as Mt. Gox details the ‘bug’ that is forcing it to suspend withdrawals as other website ‘banks’ struggle to act like responsible entities and failing miserably.  Bitstamp re opens for trading and Bitcoin value rises yet again thanks to fans who are like the Magic, the Gathering fans, devotedly buying these toys from each other again.

 

Bitcoin Charts / Charts

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We can see the mania here.  Typical hockey stick growth then a sudden collapse, then fanatics desperately cling to their product and maintain some ‘value’ but it is being steadily hammered back to the lower levels by the fact that this ‘currency’ is basically useless since the only way to make money from it is to put it in the market where it is easily stolen.  And who steals this?

 

Hackers!  For Defcon to complain about hackers is beyond funny.  This is a hacker’s paradise!  Duh!  Here is the banner of this bitcoin chart site:

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HAHAHA, sell your bitcoins for real money and then buy annuities which then protects your profits from selling this collectible to other fanatics.  Safely tucked away inside the government protected systems, the loony world of bitcoin users doesn’t upend real money at all.  Desperately, owners try to convert it to real money so they can use it properly.

 

Tulip bulbs didn’t drop to nothing after the mania, by the way, they retained real value just not the crazy mania value.  Bitcoins are still grossly over priced but as users discover the severe downsides of this business, more and more will eventually have to give up the game because these things barely exist as anything at all.  They are simply data.  Which can vanish in a flash.

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8 Comments

Filed under .money matters

8 responses to “Silk Road 2.0 Hacked, All The Silly Bitcoins Vanish, Defcon Whines About Thieves

  1. Luc

    Id prefer to read yr more practical thoughts, about the USA economy the the EU.
    Bitcoin is whatever it is. Makes no difference to most.

  2. Jim R

    Precious metals look to be poised for another bull run (if you’re counting your results in dollars). Now that the West has sold off most of its gold to China, there are shortages developing in physical supplies.

    The paper markets for metals are similar to bitcoin, of course. Those paper promises can be MF-GLobal’ed and disappear at any time.

  3. DeVaul

    Actually, bitcoins are a good measure of the “practicality” of the US economy nowadays. It consists mostly of vaporware and financial schemes.

    How can one talk about an economy that has no manufacturing, super-large Monsanto monofarms, little to no local craftsmanship, and trade tokens that are increasingly worthless?

    When it comes to the US economy, it is a miracle that anyone has anything to say about it at all. Exploring the mindset of those who hope to “profit” off of nothingness is about the only thing left to talk about.

  4. emsnews

    I have often mentioned we are buying with paper, things that are made by energetic Asians.

    AND…they know this because they are collecting not money but I.O.U.s. Debt!

    We are now in deep in debt to Asia. Big time. And will pay for this. One horrible way or another.

    To own bitcoins, what do you do? Most BUY it with ‘money’ and some go into debt to buy bitcoins so they can gamble on the rising value only that stupid pretend currency loses value suddenly whenever anyone steals some of it. Ahem. HAHAHA.

  5. Jim R

    The Asians have been quietly collecting gold. Well not so quietly in India, the Indians really like gold. So there’s that.

    As for the dollar, most of them are electronic these days. Something like 97% is a figure I have seen. And dollars get stolen, sometimes eletronically. Good luck with those flimsy Target credit card readers..

  6. Burt

    This article is full on retarded! It’s not like us currency has any intrinsic value either. And really bitcoin does have intrinsic value, in that you can do stuff with it you really can’t do with fiat currency. And buying illegal stuff is just one of these, sending money internationally without having to worry about exchange rates or middlemen is another. And Silk Road is only like 5 yrs old. Technological progress is ALWAYS feared before it’s accepted

  7. tfoth

    Just a bit of trivia, sort of:

    The guy that created that Magic card game is a descendant of President Garfield.

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