Will “all” bitcoins ultimately vanish? (be unusable)

During this CCC conference from 2011, starting from 00:18:55, the presenter suggests that as bitcoins can be lost (lost private key, dead owner, sending to an “eater” address that nobody posses, etc.), and as the total amount of bitcoins has a known threshold (21 millions), there is a possibility that given enough time, most bitcoins, if not all, will actually vanish (be unusable).

The questions is when?

Actually, according to him:

  • if 0.5% of bitcoins are getting lost per year, “all” bitcoins will be gone by approx. 2032;
  • if the losing rate is 0.1% per year, it will probably last for a century, but will ultimately be doomed.

And if we suppose that inactive wallets (2 years with no transaction) are in fact lost wallets, we reach that 0.1%/year threshold…

Bitcoin theft from Coinbase account being hacked

Not sure anything can be done, but I want to know how they did it and to prevent them using the coins if at all possible. Here are the details of the theft.

You just sent 0.8495 BTC (worth $604.46 USD) to 16fYQiV2cdHuycGo3eibE5JSKvndY2z8Gw.

~6.40GMT 29th December.

I only access coinbase via the android app, did this get compromised somehow?

Why are all popular crypto currencies deflationary?

There is a lot of criticsm and debate over whether bitcoins will ultomately fail because of its deflationary nature.

I don’t want to debate if that’s the case or not and I also understand that the goal of bitcoin was to have a fixed amount of coins so that there is no risk of (hyper)inflation.

What I’m wondering is, would it be technically possible for a crypto currency to have a fixed target inflation rate? For example the european central bank has a target inflation rate of 2% (I think) which is supposed to stimulate growth while at the same time avoiding over-inflation.

So I guess my question boils down to: Why are all popular crypto currencies deflationary? Is it a technical problem that cannot be solved or is there another reason it was designed like this?

What if a country 100% denominated in a cryptocurrency loses internet connectivity to the rest of the world?

Please assume a small island nation becomes 100% denominated in a cryptocurrency.

Now please assume that for some reason the rest of the world manages to cut if off from the rest of the internet for some extended period of time, eg 1 year or more.

During the time that is isolated, it of course is able to continue using the cryptocurrency; however, what happens when connectivity to the outside world is restored?

Will all of this nation’s transactions be lost forever and reset to the time before connectivity was lost?

If the transactions can be somehow recovered, what happens to all mining fees on the island during disconnection?

If anything is lost, how could a protocol be altered to manage this eventuality?

Getting insufficient funds when trying to send from a watch only wallet on blockchain.info android app

i currently have stored some btc on a paper wallet and have it as watch only on my blockchain.info account. now when i tried to send it out from the paper wallet, i’m getting an insufficient funds error. anyone know what this could be caused by?

also since i have it as a paper wallet and i can see the funds are still there via the blockchain. how can i import it into something else more secure?

the bitcoind daemon doesn’t respond to commands

For some reason, the daemon doesn’t accept commands neither RPC, nor command-line.
I’m running the prebuild 64 version of the bitcoind. It already downloaded all blocks etc and as is happyly running in the background, however it doesn’t allow any commands to be sent. For example:

./bitcoind getinfo
error: couldn't connect to server

I tried with a config file having only the rpc user and pass, then I extended it with different params, and of course have restarted the daemon each time. Still – no luck.

The debug.log is not telling anything either. It just dumps the normal intensive communication, likeā€¦

 2013-12-07 22:01:40 received getdata for: tx  
 593f4528895f75bcd3df12fb09eedb7e5e6659a7a8a999d7e127eb131afde417)

but no trace from my attempts to call a simple command.

I tried to google the problem without luck.