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Anyone still mining Bitcoins?
- Thread starter EmileS
- Start date
Do you still think this is a scam gary?
Not 120USD?
Either way, Bitcoin appear to be incredibly unstable.
Where can one buy bitcoins (without mining)? Seems like a good investment opportunity as these coins were only 15USD in January. From 15USD to 266USD in 3.5 months!! Maybe if it crashes real low, (Like under 30USD), it could be a great oppotunity! (could also be a great mistake).. A real gamble.
It exploded over night, cypress banking issues made it sky rocket in a few days, it didn't take 3 months.
The bubble will burst, matter of when. It can go up by 100 dollars in a day
. Bitcoin needs another bail out 
Here is a good article to read:
http://techcrunch.com/2013/04/11/bi...e-newcomers-now-opening-20k-accounts-per-day/
Bitcoin is very interesting, many people for years have thought it was a scam but could not explain how it could be a scam when there was no layout to mine bitcoin, well when i say layout i mean there wasn't something you had to buy to mine bitcoins, most gamers could mine bitcoins so there was no scam.
the article explains it pretty well and with the current banking crisis it would be interesting to see if there will be another bitcoin type currency emerging at some point.
For the first time bitcoin has gone mainstream as well, cnn, bbc, rt etc talking about it, the only mention of bitcoins in the last 2 years i can recall was aljazeera ran a program on bitcoins but now more and more people are reading articles and so on because it's gone mainstream due to the huge money you can make now. Still rocking 180 dollars which is amazing. The banking crisis is helping as well.
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It exploded over night, cypress banking issues made it sky rocket in a few days, it didn't take 3 months.
The bubble will burst, matter of when. It can go up by 100 dollars in a day
For future purposes, whats the best way to buy bitcoins? (for when the inevitable crash occurs)
Exchanges and forum users.
I am not certain anymore that bitcoin will crash and nose dive back down to nothing, the US for instance is printing money like crazy but in reality that money is worthless. The same can be said about bitcoins, money generated from nothing so bitcoin could possible sustain itself with so much interest being shown. If the US can manage to print their way out trouble i don't see why bitcoin cannot become a major player. I was expecting it to tank but i am not so sure anymore.
Your best bet is to mine the coins if you can, geez the people who have the hardware right now to make bitcoins must be making so much flippin money
. More and more online stores are accepting bitcoins as payment now as well.http://techcrunch.com/2013/04/11/bi...e-newcomers-now-opening-20k-accounts-per-day/
Cyprus has caused the rise of the bitcoin. People don't want to use banks anymore. The euro tanking country after country could allow bitcoin to become massive. At some point the americans cannot keep printing dollar after dollar. Then again the dollar is going strong why stop the presses. I do believe though the banks are going to try and nail bitcoin ASAP though. The only factor i believe is missing from the article i posted is the new hardware that will be shipped in april, 3600 bitcoins mined a day will be over taken, it could become 20 or 30000 i would imagine. So what happens when bitcoins hit the 21 million mark which should happen fairly soon with new hardware? I don't know when there are no more bitcoins to mine maybe it will stabilize.
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Bitcoin is basically an algorithm, gpu processing power decodes the blocks and bitcoins are generated, i would need to wiki for the exact breakdown to be honest LOL. Basically you don't outsource anything rapid.
Before the difficulty level became so hard, anyone with an amd gpu could mine bitcoins but when i was mining the most i ever saw for a bitcoin was 22 dollars, i was mining 24/7 making decent money. Now there are new bitcoin miners that are thousand+ times more powerful than the latest greatest amd gpu. So there is no outsourcing. You can do it from your own house, people set up farms and so on. I stopped mining when it crashed and bitcoins dropped to 2 dollars but there is no outsourcing.
At the moment most gpu's can only mine maybe 600 mhash/s, for 30k you buy hardware that will mine 50000mhash/s: link below. there is no outsourcing or risk involved unless bitcoin crashes and burns.
http://www.butterflylabs.com/
http://www.alloscomp.com/bitcoin/calculator Put 50000 in the calculator, I am not sure if my math is 100% i am slightly confused but i think 1000 mhash would be a ghash so a 50ghash machine would be 50000 mhash but i could mistaken been a long day
.that is what you can make right now with bitcoin at 125 dollars with a 30k piece of hardware.
they are sold out of the 1500 ghash system (24-30k dollars for the hardware), so let's say you had one of those machines that can do 1.5 million mhash, put that in the calc rapid
. One of those beasts can do 3000 bitcoins a month right now. 300k dollars in a month with an initial investment of 250k rand. Now if 1000 or 2000 have been sold bitcoin will be mined so quickly it will hit the limit of 21 million much much sooner than the gpu mining would have done. Well if bitcoin can go over 200 dollars and sustain it for a month you could make millions over the next 2 or 3 months. It's too late for mining now though unless you got something on order.
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Thanks for the explanation. Still don't get the creating something of value out of nothing and difficulty thing
Way to late to get in the game now I recon...
Yea i also don't understand how it comes from nothing, the difficulty i understand. they want to keep putting it up because hardward gets faster so they are prolonging the limit of 21 million bitcoins. I would be interested to see what the difficulty level will go to when the new hardware is shipped. Should sky rocket.
You can compare it to the dollar. The americans are printing paper but there isn't actually any value in the paper or currency but as long as people accept and use the dollar there is value.(please note i am not being anti US i am just using an example that seems to make the most sense).
http://www.globalresearch.ca/u-s-dollar-collapse-where-is-germanys-gold/5321894
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Garson007
Honorary Master
- Joined
- Jan 26, 2007
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- 11,838
The growth pattern in coin supply just doesn't make sense for this to be a sustainable currency. It's just not a good investment.
It's like it's purposefully designed to be some sort of get rich quick scheme for people who got in early. It really looks like the new Ponzy scheme type thing.
It's like it's purposefully designed to be some sort of get rich quick scheme for people who got in early. It really looks like the new Ponzy scheme type thing.
That's not how it works... 25 bit coins are created/assigned every 10 minutes; irrespective of the number of miners or their performance.
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Not really, bitcoin has been around for awhile now.
Garson007
Honorary Master
- Joined
- Jan 26, 2007
- Messages
- 11,838
4 year gaps isn't exactly the long game.
It also isn't over night riches though.
http://rt.com/shows/keiser-report/keiser-report-rpisode-430-626/
13 minutes xrapid they talk about bitcoin and max keiser knows his shyte.
13 minutes xrapid they talk about bitcoin and max keiser knows his shyte.
If I understood the maths properly, bitcoins are cryptographic hashes which have the the property of containing a series of zeroes ((I forget how many, or where they appear in the hash, it does not really matter though for our purpose)
Since a hash is unique, it implies a small predictable calculation cost, the chances of finding a hash with 0000... in it are mathematically predictable, given the hash size, and it either becomes progressively harder to find those hashes with a sequence of zeroes, or they make it progressively harder by increasing the length of the zero sequence. This is the "difficulty" level.
Given the size of the hash used for bitcoin, there is a mathematical limit to the number of bitcoins (21 million) after which it either would take a ridiculously long time time to find a hash with required zeroes, or the hashes with zero sequences are exhausted. (I may be wrong about the algorithm, but the principle is correct)
Since Bitcoins are just numbers and letters, arranged in a unique sequence, they have particular utilities, until recently the most valued cryptographic utility was identification/verification and encryption. Now bitcoin adds a utility by allocating a monetary function to the hash. You can exchange the hash for something else of value, usually via a purchase, but also via "mining" which was the original incentive to get people to use bitcoin, yay "free money"
Obviously, there is more to it than this, the "mining" activity helps keep the system "alive"
(mostly needed in the early phases) by maintaining the integrity of the hashes and keeping track of the chains of ownership of bitcoins. But I am ignoring all the nuts and bolts for now or you will fall asleep...
Bitcoin is fiat money, with some very attractive properties, it cannot, or is very very hard, to counterfeit, it is trivial to store, and transfer, it can be used anonymously, like cash. Transfer costs are extremely low with very little friction and no taxes (yet). So there is a supply of bitcoins to start with (the miners, early birds got a free coin) and slowly there is a demand for bitcoins (people find them useful, et voila - bitcoin = currency)
Now the bitcoin can be exchanged for goods/services and other currencies, and it's price follows law of supply and demand as usual.
If anyone from ZA who uses bitcoin is still reading When I looked in the early bitcoin era, I liked the idea, it was easy enough to buy bitcoins, but seemed very difficult to get your bitcoins back into Rands, so
what is the situation now, and how are you going about it?
Since a hash is unique, it implies a small predictable calculation cost, the chances of finding a hash with 0000... in it are mathematically predictable, given the hash size, and it either becomes progressively harder to find those hashes with a sequence of zeroes, or they make it progressively harder by increasing the length of the zero sequence. This is the "difficulty" level.
Given the size of the hash used for bitcoin, there is a mathematical limit to the number of bitcoins (21 million) after which it either would take a ridiculously long time time to find a hash with required zeroes, or the hashes with zero sequences are exhausted. (I may be wrong about the algorithm, but the principle is correct)
Since Bitcoins are just numbers and letters, arranged in a unique sequence, they have particular utilities, until recently the most valued cryptographic utility was identification/verification and encryption. Now bitcoin adds a utility by allocating a monetary function to the hash. You can exchange the hash for something else of value, usually via a purchase, but also via "mining" which was the original incentive to get people to use bitcoin, yay "free money"
Obviously, there is more to it than this, the "mining" activity helps keep the system "alive"
(mostly needed in the early phases) by maintaining the integrity of the hashes and keeping track of the chains of ownership of bitcoins. But I am ignoring all the nuts and bolts for now or you will fall asleep...
Bitcoin is fiat money, with some very attractive properties, it cannot, or is very very hard, to counterfeit, it is trivial to store, and transfer, it can be used anonymously, like cash. Transfer costs are extremely low with very little friction and no taxes (yet). So there is a supply of bitcoins to start with (the miners, early birds got a free coin) and slowly there is a demand for bitcoins (people find them useful, et voila - bitcoin = currency)
Now the bitcoin can be exchanged for goods/services and other currencies, and it's price follows law of supply and demand as usual.
If anyone from ZA who uses bitcoin is still reading
When I looked in the early bitcoin era, I liked the idea, it was easy enough to buy bitcoins, but seemed very difficult to get your bitcoins back into Rands, sowhat is the situation now, and how are you going about it?
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