Hacked BitCoin Exchange Sued By Customers

judgecorp writes "Bitcoinica, an exchange for the BitCoin virtual currency, is being sued by former customers, after it was hacked. Thieves stole around $180,000 worth of BitCoins in two attacks. The site is now closed, and customers are suing to get their money back."

Comments

Re:It's the server that's not

[Anonymous Coward]

You know what the biggest current problem with bitcoins is? Scarcity. The current model has them scaling back logarithmically as the number of transactions increases. What this means is that every generation it becomes that much harder to mine bitcoins and thus that much more lucrative to steal them instead. Combine this with the new FPGA mining rigs and the lowered electricity cost to generate them as a result and what you have is a digital representation of modern financial society.

The lower-class, with ineffecient rigs unable to produce more bitcoins than it's costing them.
The middle-class, with rigs just good enough to break even.
The upper-class, with rigs that provide a net benefit in bitcoin mining compared to cost, thanks to efficiency and scale.
The black market-class, hacking the latter three, disadvantaging the lower two, and having the uppers pass the buck back down.

In that light, it makes an excellent sociology and economy experiment given how well it reflects the various groups involved in modern global society.