Cryptocurrency

184 Billion Bitcoin Bug



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In this video, I discuss the famous Bitcoin inflation bug of 2010, where someone created an extra 184 billion Bitcoin (“value overflow incident”).

This bug was patched by Satoshi within 5 hours of its initial discovery by Jeff Garzik, and Satoshi encouraged miners to build on top of the “good chain” that did not contain this block.

Inflation bugs are not a huge threat to Bitcoin, because there are so many eyes on both Bitcoin Core and the Bitcoin blockchain. Bitcoin does not need an official security audit for this reason.

Ultimately, Bitcoin’s 21 million max supply is a social value that is enforced through the code by the social layer of Bitcoin. Without this strong social layer that holds the max supply cap to be sacrosanct, it would be relatively easy to change the supply schedule and cap by just changing the software code..

Bitcoin inflation bugs are easy to spot, unlike inflation bugs in Monero and Zcash, which have the potential to do a lot more damage before they are spotted.

It is absurd to compare Satoshi rolling back the blockchain in 2010 to Vitalik rolling back the Ethereum blockchain in 2016 in the wake of the DAO hack. The latter took place when Ethereum had a market cap of $1 billion and was done to protect Ethereum pre-mine beneficiaries.

Whenever someone talks about the Bitcoin inflation bugs of 2010 and 2018, it is almost always in the context of trying to sell you their favorite altcoin. Let the buyer beware!

Not investment advice! Consult a financial advisor.

The Day Someone Created 184 Billion Bitcoin:
https://decrypt.co/39750/184-billion-bitcoin-anonymous-creator

Typical misleading article on Bitcoin inflation bugs:
https://medium.datadriveninvestor.com/itcoin-unhackable-it-happened-twice-not-blowing-smoke-9e16bcddd5ab

Value overflow incident:
https://en.bitcoin.it/wiki/Value_overflow_incident
https://bitcointalk.org/index.php?topic=822.0
https://bitcointalk.org/index.php?topic=823.0

Ethereum market cap historical chart:
https://www.globaldata.com/data-insights/financial-services/ethereums-market-capitalization-history/

2018 Bitcoin inflation bug:
https://bitcoincore.org/en/2018/09/20/notice/
https://medium.com/hackernoon/bitcoin-core-bug-cve-2018-17144-an-analysis-f80d9d373362

I am not being paid or otherwise compensated by any company or cryptocurrency project that I mention in my videos.

My opinion is not for sale. Please do not contact me with any affiliate or advertising deals.

#bitcoin
#inflation
#bitcoinhack

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48 Comments

  1. Trader University

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  2. Radagast'sAddledMind

    Everyone needs to watch and spread This Pivotal Moment. Look it up on youtube. That is where we are heading and I think BTC is a good (maybe the only) way of protecting ourselves financially from the tyranny they are going to force on us. Thanks Trader U for doing such a great job educating us on this, keep up the great work!

  3. Jerry Woodguard

    Reductio ad absurdum or argumentum ad absurdum
    Reduce the opposite of your argument to its absurd conclusion.
    If the earth was flat we'd see people falling off the side.
    Came for the BTC stayed for the Greek.

  5. Manuel Miunske

    Security audits are definitely preferable to the current scenario, because battle-tested security mainly attracts black hat hackers in comparison to white hat security experts who are getting paid to audit the software with every change introduced.
    You don't want to find out that there was a bug by losing coins or by losing value of your coins (in case of an inflation bug).
    That said, it doesn't justify the arguments of all the scammers.

  8. Think and Grow Rich

    Bitcoin
    An Immaculate Conception – The time, in our technological history, the technology available to use, the altruistic nature of the founder, not seeking to cash out or monetize it, the design, the innovation and the need for such a financial technology creates the greatest invention of the 21st century

  9. Chuck

    Certainly the US Government was aware of Satoshi, Hal Finney and Bitcoin back in the day. So why did they not shut down Bitcoin in the very early days?

  10. SAL

    This video highlights a key difference between Bitcoin and monero. In Bitcoin, because the supply of coins is auditable in real time with simple addition, any inflation bug will be detected quickly and fixed quickly. In monero, the amounts are obfuscated, which means if there is an inflation bug happens (like 184 billion xmr) it might be a long time before it is discovered. Monero supply auditability is not a matter of simple addition.

  12. mhma7

    QUESTION ❓️

    How does 21 million btc scale or spread out for use amongst 8 billion (and growing) people across the earth (not to mention corporations)? I know 1 btc equals 100 million satoshis. But when a company like Micro Strategies already owns hundreds of thousands btc, how does that get distributed amongst the masses?

  18. Kodi Dude

    Good video Matt. Only one correction, outside of genesis block, there must have always been at least 2 miners connected in order to mine. Hal and Satoshi were the only two for a little while until others started to connect.

    Your message is important as it describes difference between a β€˜bug’ exploit and β€˜hack’.

  23. David Graham

    I very much enjoy your analysis of exploring past Bitcoin events. Clarifying events like these Bitcoin bugs really show the difference between the Bitcoin community and others. I'd appreciate if you'd cover more early events such as these and what lessons they teach us.

  28. Ahoyo

    Can you please talk about the parabolic hash rate? It's freaking me out. Why would it be going up this much when it's least profitable to mine? Isn't it likely that some major player is intentionally mining at a giant loss in order to make all the others operate at an even GREATER loss in order to wipe them out? Possible window opening for 51% attack?

  29. PanB

    Hello, my brother and I are your regular listeners from Ukraine. We are bitcoin maximalists and your channel is to blame for this. I have a question. Why do many bitcoin maximalists love Putin so much? Do they not understand that dictatorial regimes will never accept money that they cannot control?

  32. myke Does

    Gold may be virus proof but its not man hand proof any more than blockchain is (since a flesh being can make a virus) the difference is that there is only so much gold one man can walk away with, but one man can make a virus and not even have to carry anything regarding the theft of crypto

  33. myke Does

    Although I am a believer in tech I also believe in thievery and since this flesh being glitch will never go away i also believe one day we will go back to guns and gold. (example Nixon)

  35. Finance Fonz

    You should debate Richard . I watched some of his past debates and he only debates with people who are even also altcoin shills or bitcoiners that just don’t know the technicals much or just outright morons like Peter McCormack

  36. Walter Sobchak

    Thank you for going over this subject. I'm still hedging on btc, but this does imply that btc is controlled by a central point. The same person/group that fixed the bug essentially can do anything they want. I don't think it will happen, I think they believe in the mission. But it is not a hard fact to say btc is decentralized.

  42. FluffyGorilla

    Don't forget that Bitcoin inflation bug #2 (CVE-2018-17144) was discovered in 2018, fortunately this one wasn't exploited. But it established that inflation bugs are in fact still a possibility in Bitcoin, there could still be a #3 or #4, although the likelihood remains low. The problem here isn't so much detecting the bug, its that fixing it by rolling back the chain means that all legit transactions made after the bug was exploited would also be reversed, which would harm innocent users and potentially destroy faith in Bitcoin, you could never again be certain you wouldn't be a victim of a future inflation bug. Bugs are simply a fact of life when dealing with software, if you can't accept that then don't use crypto.

  47. 3pharaohstowers

    Buy & hold red dips as cryptos on the usa dollar are Pumped, oppose inflation recessions & Centralize Banking Digital Currency. Militia upholds Decentralized constitutional public debt crypto vs cbdc

    NOT A THREAT.

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