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Cyber Bitcoin

In February 18, 2015 at 01:21 (Chinese New Year), Kipcoin published an article called "The statement about theKipcoin  stolen event" .It said the Kipcoin has been stolen for many times since last October . The total loss is more than 3000 BTC.When news came out, immediately caused a strong dissatisfaction of insiders.According to the description of the article,the account of Kipcoin was hacked by hackers in June last year by hackers.Since last October,  the hackers has stolen more than 3000 BTC 10  in several times .And nobody find it until January.But Kipcoins chose not to immediately release the stolen message when they found that .They continue to increase interest to attract the savings .In fact, their behavior has constituted  a fraud.

In expectation

when I learned this news, i feel not only surprised but also shocked.

As early as last year on July 19, I have made a comprehensive review in view of the financial products on the market . I focus on the  risk of Kipcoin, because it's the most opaque information one.

Because CYBTC is a mining machine forum, the influence of this article is very small.It just has been viewed more than 1000 times.But, this article illustrates the risk of the Kipcoin directly: "the risk of this pattern is much bigger, because it is not transparent enough. If OLP doesn't do any investment  (in the case of information opaque, this is possible).Just using deposited  money of the latecomers   to return interest, then it is a ponzi scheme. So, in fact the risk of this pattern is unknown untilKipcoin announce the details of the investment.Moreover,its income is not high.

By contrast, there is no risk tip in the other two articles that  introduced Kipcoin.and< The exclusive interview of the CEO wang cong of Kipcoin ".It is worth to  mention that the influence of the two media institutions is far more than CYBTC.

Shock: there is no sincerity

What made me feel shock is that in the course of the whole event, Kipcoin is reckless, no sincerity.

First is the time of release, the 1:30 in the morning of the lunar year.Choosing such a time is good to the Kipcoin , but it  is very adverse to the user. Kipcoin  has no moral integrity and the bottom line only from the choice of time, .What's more, there has been no evidence to prove it ihad been stolen already.

Then, Kipcoin published an article ,they made detailed instructions for the whole incident, and the compensation scheme is worked out.However,so much bullshitting ,users can no nothing useless from the article:

(1) Publish accounts details.This is very important. Only the accounts can prove all of the enent is not a ponzi scheme.

(2) Clarify the compensation amount and time.It is also very important, no time node, all the compensation can be a blank check.The compensatiom must be immediately,but Kipcoin does not make a promise to this.

(3) Open the website to allows the user to login website, check account balances and leaves a certificate.

The user's nightmare

After things happen, I didn't feel too much, because I think a mooch who saving money in kipcoin deserve it.I didn't know I was wrong until  Mint said she was a user of Kipcoin. Her reason to save money is she did not believe in her technology  and worried about how to  keep  BTC .

Although I don't know how many users like Mint have saved money, in Kipcoin ,the number is huge.Kipcoin is not exchange, therefore the users should be some people who wolf like to hold the BTC  for a long time.Therefore, if a person who are ready to hold the BTC in a long time , there was a big possibility of afraid ing of their own technology .

I should have given her some knowledge of safe storage for such users like MINT ,rather than allowing her to put BTC in some other’s hand. We have ignored the problem.For a year ago, I wrote the article " the Greatest Risks of BTC".i reminded everybody  that the  biggest risk is not the rise and fall, but the lose of money (the lost of trading platform or his private key), but, I did not mention the method of hold money in details.

The crisis in financial products

Kipcoin stolen events will also lead toa query to other financial products in the loop. In fact,BTC  is almost the same with the real money, the  lending often happen around us, and things of  lender ran away with the way always happen.

Borrowing as a business model will exist forever.This is determined by the demand, as a matter of fact, a successful borrowing, is good for both sides.Lenders may have mastered some ways of making money and sufferd from lacking of money.Borrowers can provide the corresponding funds, earn interest.It is a win-win for both sides.

The problem is, the real lending and ponzi scheme is unable to distinguish on the surface.The only instruction significance is whether the lenders have the profit  to repay the principal and interest.But it is still not an insurance, because it is impossible for individual investors to know the total borrowing lenders.For example: the lenders  takes you to visit his quarry, you only konw the scale of millions and put hundreds of thousands of BTC to him.But, you probably don't know that the holder maybe have borrowed billions of BTC, he is making ends meet and just waiting for your money to leave.

At present, the financial information of BTC is still not very transparent, we still could not judge if it is a ponzi scheme .I suggest to minimize the investment.In fact, if not a ponzi scheme, the risk of financial products is still huge.(1) The platform put so many BTC together, it is the first  attacting target of the hacker ;(2) The internal staff of platform maybe embezzle the money;(3) Natural disasters is inevitableby,for example mining collapse;And so on.

Of course, if you know very well to the status of a  financial product and trust in the lenders, such as: financing platform is owned by your relatives, that is another matter.

Can we still remember the meaning of BTC?

Finally, I would like to remind everybody:do you still remember the meaning of BTC?Control your own wealth in your hand is an important difference with fiat money.For the fiat money, your wealth is not controlled by yourselves. Central Banks can print money at anytime they need in order to deal with the risk of inflation, we just need to keep  to investing to avoid the wealth destruction.On the contrary, hold the currency, especially long-term or permanent hold, is not to need to investment, because it may eventually is a monetary wealth his master, this is an important difference with fiat.Hold it, your wealth is not controlled by themselves, central Banks printing money they know when to print money, in order to deal with the risk of inflation, we just need to keep investment, so as to avoid wealth destruction.On the contrary, hold BTC ,especially long-term or permanent hold, is not to need to invest, because it  is a deflationary money eventually.
If you do not master private key, by yourself ,you actually have violated the original intention of BTC.

If you don't know how to keep BTC, you can learn,.Because ,in fact,the  learning threshold is not high.It is iust to keep a private key.If you would like to put the money in platform, you also should to learn  how to register an website and a two-step verification.So,it is not hard to learn.

Translator:    Warm Kitty
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