

Why Bitcoin is a Prime Target for Hackers - ExtremeML
http://www.scanmysite.net/blog/why-bitcoin-is-a-prime-target-for-hackers

======
mistercow
Whenever I see reference to bitcoin mining botnets, I wonder if this couldn't
be implemented on a legitimate level. Call it "mineware", and the way it works
is that you get a piece of software for free, but while it runs, it mines
bitcoins for the developer.

This would be particularly well suited for professional graphics software.
There you have customers with high end hardware, but that hardware is sitting
idle for a large chunk of the time. The mining could be tuned to
conservatively curb its CPU/GPU usage when other processes needed it. The end
result is that you fully utilize a resource you have in order to get software
for free.

The biggest problem, of course, is that this kind of breaks down if more than
one developer does it.

~~~
BarkMore
This is similar to what CoinLab is doing. Gamers run the the CoinLab mining
client in exchange for in-game currency.

~~~
mistercow
That's cool to see that the idea is being explored, although I think gaming is
absolutely the wrong market for it. My understanding is that GPU processing is
really where the money is for mining, and while a gamer's system likely has
idle CPU cores to exploit, GPU is a rather precious resource for a game.

~~~
BarkMore
The idea is to mine when not playing the game. I know that some people seem to
play games 24x7, but most people don't.

------
Nursie
It does repeat the no-fee meme, which is an odd one. As I understand it there
is a default fee and the mining/validating crowd are under no obligation to
process your transaction if they don't want to.

And it's such a good target for a few reasons, the irreversible nature of
transactions is one thing, another is that the authorities don't really care
to get involved.

~~~
clarkmoody
The default fee is currently very small (0.01 BTC) per transaction. Compare
that with credit card fees of $0.35 + 2.5% per transaction, and you will see
the draw of Bitcoin for large businesses with lots of credit card
transactions.

The transaction fee mechanism is a helpful free market tool that gives more
freedom to Bitcoin spenders: for low-importance transactions, the spender may
choose to save on fees at the expense of a long, uncertain confirmation time.

Of course the miners have no obligation to anyone, and at this point in the
game, block rewards are high enough that transaction fees do not really factor
into the decision on the transactions to include in the block. As block
rewards shrink, transaction fees will become the miners' main source of
income, so fee-less transactions will take much longer to be confirmed.

~~~
Nursie
Sure, there are low and/or optional fees. However these will likely increase
in practical terms in the long run. Whether they ever increase to the level of
credit card fees, for a fast transaction, is unknown.

This is still not 'no transaction fees and taxes in the least'. I would
anticipate that if it ever gets wider traction we'll start seeing attempts to
tax commerce in Bitcoin , just like real money. Bitcoin income should probably
already be declared in many countries.

~~~
rprasad
Bitcoin transactions are taxable in both the U.S. and Europe, regardless of
whether Bitcoin is a currency or asset.

Not reporting Bitcoin transactions is income tax fraud. In the U.S., at least,
that potentially means that the statute of limitations for when the IRS can go
after you for back taxes and penalties never expires.

------
shrughes
The answer: Money.

~~~
NegativeK
The more answer: Anonymous, digital money.

The strengths of Bitcoin are its weaknesses. If you stash thousands under your
mattress and your house burns down, you're out of luck (sort of. The Secret
Service will replace bills if you can send them mostly burned versions.) If
you completely delete your Bitcoin wallet, you're out of luck. If a robber
breaks into your house and steals your cash stash or a hacker gets into your
computer and steals your Bitcoin stash, you're out of luck.

~~~
gravitronic
It's not that easy though.. Bitcoin transactions are public, and the community
is relatively tightknit. Eventually a thief has to use a payment processor to
get real dollars from their heist, and from that point onwards look over their
shoulder in public.

~~~
Nursie
Really?

I thought the general consensus was just to let it all go, spend maybe a
little effort tracking the coins as they get moved, but eventually lose them
in the system, and then forget about the whole thing.

Correct me if I'm wrong, but AFAICT nobody's watching the coins that got
stolen from (say) bitcoinica so that they can either refuse to transact with
them or go beat them up. In fact quite the opposite, the community as a whole
seems entirely resistant to the idea of any sort of coin blacklist. AFAICT.

------
mvanga
Answer:

1) Money 2) Vulnerable

Doh!

~~~
crag
QFT.

I mean why even waste the time writing an article about it? The answer is
obvious.

------
EGreg
If you do double-spending in a short period of time (while it hasnt'
propagated yet), won't both people claim you paid them? I think people's
reputations for this sort of thing should be in the system and somehow managed
as well.

