Bank error nets Bitcoin owner $trillions: Inside the weird world of cryptos

February 23, 2018 7:00 am

Banks seldom make errors in your favor, but when they do it usually involves a few hundred dollars or even a few thousands.

But a few trillions?

But before we get to that and other weird and wacky stories from the crypto world, let’s update where the digital currencies stand today.

More down than up

According to Market Watch (MW), Bitcoin lost $1,500, falling by nearly 10% yesterday, when it dropped from $11,700 to $10,244.

Currently it is back up at $10760.

“Digital currencies lost ground Wednesday as overall market sentiment waned, and after nearly doubling in price since the Feb. 6 low of $5,947.40, traders have begun dumping some of their holdings,” said MW.

“We will start running into overhead resistance,” Jani Ziedins of Cracked.Market said in a research note, referring to trading levels that market technicians view as points where selling tends to be triggered.

“Many premature dip-buyers jumped in between $12k and $15k and we should expect many of those regretful owners to sell when they can get their money back. Their selling will slow the assent over the near-term,” he said.

Watch: Is Bitcoin ready for the mainstream?

Ether slipped to a one-week low, falling 6.3% to $836, while Bitcoin cash was down 7.2% at $1,322.

Litecoin was lower by 9.2% at $213 and Ripple’s XRP coin was trading at $1.02, down 5.9%, according to CoinDesk.

A trillion dollar mistake

An error in the price calculation system at Japanese cryptocurrency exchange Zaif has allowed some customers to claim digital tokens for free, including one who “purchased” $20 trillion worth of Bitcoin, Fortune reported.

The problem with this is that the entire Bitcoin market capitalization is around $183 billion, and all cryptos together are around $500bn, according to CoinMarketcap.

The glitch lasted 18 minutes, and the one whose account and pulse bulged to new extremes tried to cash out.

Can you blame him?

Related: Mainstream bankers shifting to Crypto: Heavyweights staking everything

“Tech Bureau, which owns the Zaif exchange, has invalidated the transactions and corrected user balances. However, the company is now being investigated by Japan’s Financial Services Agency (FSA) about the security of its system as well as other business practices,” said Fortune.

FSA is in the middle of a probe that saw Tech Bureau being investigated after the hacking of Coincheck of some $500 million in cryptocurrency.

Bitcoin regret group

The rollercoaster ride of Bitcoin has made certain people rich and countless others poor.

According to Mashable, the Bitcoin Regret Group (you don’t want to join) is one that calculates the exact amount of Bitcoin riches you’ve missed out on, or how disappointed you should be not to have invested in cryptos.

If you want to go into this painful experience of discovery, the Club’s calculator is very simple asking you to enter a date and an investment amount.

“The website works its magic, then tells you exactly how much money you didn’t make from that investment. For example, if I’d invested $400 on June 6 2013, I would now have $35,586,” Mashable said.

Great. Next go see a doctor for some anxiety medication.

To make it worse, the site can also tell you how many products (homes, cars, gold, vacations) you could have bought, had you been a more daring cryptocurrency investor.

Maybe you’ll need a shrink for that one.

Read: Is the second wave of the Saudi anti-corruption probe on again?

Tesla Bit Mined!

According to BBC, Tesla has confirmed that its cloud computing platform has been compromised by hackers saying that RedLock, the company that alerted it to the breach, believes the attackers may have done this to mine crypto-currency, an attack known as crypto-jacking.

“Tesla said it had addressed the vulnerability “within hours” and that no customer data had been stolen, reported BBC.

Crypto-currency mining is the process for creating new digital coins by solving complex mathematical problems. It uses large amounts of computer processing power and therefore racks up large electricity bills.

“Hackers can save money by installing software on other people’s computers to mine coins without their knowledge or consent,” said BBC.

“Hackers have compromised services offered by Starbucks, YouTube and the UK’s Information Commissioner’s Office.”





Hadi Khatib
By Hadi Khatib
Hadi Khatib is a business editor with more than 15 years' experience delivering news and copy of relevance to a wide range of audiences. If newsworthy and actionable, you will find this editor interested in hearing about your sector developments and writing about it.