Computer compromise leads to theft of bitcoins valued at $500,000 USD

Re:Computer compromise leads to theft of bitcoins valued at ... by thomasz on Tuesday June 14, 2011 @01:40PM (#2653928)

I don't want to risk wasting 45 minutes listening to a crackpot, and honestly, there are quite a few indicators for lunacy in the first few minutes. Can you give a few bullet points to help me decide if it's worth to watch?

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Re:Computer compromise leads to theft of bitcoins valued at ... by nhaehnle on Tuesday June 14, 2011 @04:43PM (#2654670)

I haven't checked the video (can't watch it here), but there are indeed many misconceptions about how the banking system operates.

In particular, banks do not lend out deposits, at least not in any meaningful way, and the so-called money multiplier is non-existent.

To get up to speed on such things, I would recommend the blogs of economics professor Bill Mitchell. His style is a bit rambling without much polish, since he writes one entry every day, but I found it very worthwhile for getting a deeper understanding. Consider looking for entries with "money multiplier" in the title in the index here: http://bilbo.economicoutlook.net/blog/?page_id=1667

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Re:Computer compromise leads to theft of bitcoins valued at ... by drblast on Tuesday June 14, 2011 @05:49PM (#2654928)

It talks about the history of banking and the fractional reserve system, the difference between commercial and central bank money.

What most people don't realize is that banks don't have to actually have the money they lend out. That's the basis for our monetary system and while it has nice qualities, like spurring innovation, there are some undeniable drawbacks.

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Re:Computer compromise leads to theft of bitcoins valued at ... by anigbrowl on Tuesday June 14, 2011 @07:01PM (#2655182)

You know these concepts are explained in any first-year economics textbook, yes?

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