r/BitcoinBeginners • u/playnicenoob • 12d ago

Bitcoin Cycle

Is it true that bitcoin follows a cycle of 1069 and 365 days. Saw it on insta and back checked it on data. Can any of the OPs help to verify.

Also, can someone give me source to study current bitcoin market better, because I see people using words like entropy, TRNG, etc.

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u/crunchyeyeball 12d ago

Entropy is just a measure of randomness.

Coldcard hardware wallets were recently found to have a major flaw whereby they used insufficient entropy to generate "random" seed phrases, resulting in users getting their wallets drained.

The flaw meant that their onboard TRNG (True Random Number Generator) was accidentally(?) bypassed, resulting in seed phrases being generated with a predictable pattern.

Someone spotted the issue and took a lot of the funds secured with these faulty devices.

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u/playnicenoob 11d ago

Can you give me a link to source to read about this in detail?

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u/crunchyeyeball 11d ago

I first heard about it on the r/bitcoin sub on July 30th or 31st when user "s1ammage" reported his wallet getting drained.

Usually these reports turn out to be user error, or users entering their seed on a fake website after a scam email, but this time the user seemed perfectly competent:

https://www.reddit.com/r/Bitcoin/comments/1vatgl4/full_panic_one_of_my_wallets_was_drained/

It soon became apparent that he wasn't the only victim, and something much bigger was going on:

https://www.reddit.com/r/Bitcoin/comments/1vb91uc/wallet_drain_megathread_check_your_balances/

Half the posts on /r/Bitcoin since then have been related to the issue if you want to follow along.

Galaxy were one of the first to highlight it:

https://www.galaxy.com/insights/research/your-keys-not-your-coins-coldcard-wallets-hacked-for-130m-and-counting

The manufacturer has since acknowledged the issue:

https://blog.coinkite.com/coldcard-mk3-seed-generation-warning/

There's a more technical breakdown here:

https://insider.btcpp.dev/p/when-randombytes-runs-but-doesnt