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Bitcoins - digital currency Bitcoins - digital currency

04-01-2011 , 10:44 PM
http://www.bitcoin.org/

Quote:
Bitcoin is a peer-to-peer digital currency. Peer-to-peer (P2P) means that there is no central authority to issue new money or keep track of transactions. Instead, these tasks are managed collectively by the nodes of the network. Advantages:
  • Bitcoins can be sent easily through the Internet, without having to trust middlemen.
  • Transactions are designed to be computationally prohibitive to reverse.
  • Be safe from instability caused by fractional reserve banking and central banks. The limited inflation of the Bitcoin systemís money supply is distributed evenly (by CPU power) throughout the network, not monopolized by banks.

Quote:

Total size 5,811,700 BTC
or 4,585,431 USD
or 3,545,137 EUR
or 133,094,323 RUB
or 3,849 ounces of gold


Any value to this idea or will it never work?
Bitcoins - digital currency Quote
04-01-2011 , 11:13 PM
They are trading at a ridiculous 70 cents USD which is hilarious for a currency that no one uses.
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04-01-2011 , 11:15 PM
you can convert bitcoin to paypal usd for a small fee, ofc

you can also purchase pizza
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04-02-2011 , 01:19 AM
http://www.youtube.com/watch?v=XQPSw...ilpage#t=2513s


Interesting. Good stuff but his talking about gold backed currencies and why we abandoned it reek of ignorance (not enough gold to print more money what - thats the argument of ignorants) on the subject but otherwise the rest is good stuff.
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04-02-2011 , 01:25 AM
There is nothing stated about limitations to bitcoin mining....which means supposedly I could utilize an extremely powerful, multi core server at work and bitcoin mine during off hours and quickly becoming the wealthiest bitcoin miner.
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04-02-2011 , 03:24 AM
There are people doing this to the max. One guy apparently using diesel generators to power his farm because it's cheaper than his electricity rates.

http://www.bitcoinminer.com/post/236...ctricity-rates

edit

http://blog.zorinaq.com/?e=49

Last edited by bjornb; 04-02-2011 at 03:39 AM.
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04-02-2011 , 03:45 AM
i wonder if these people all share the same mental illness, or if it's more of a general hodgepodge of stupid
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04-04-2011 , 09:56 AM
http://www.econtalk.org/archives/201...en_on_bit.html

interview with bitcoin guy, just popped up
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04-04-2011 , 02:12 PM
bitcoins trading at $0.80 in USD or $0.75 Paypal
http://bitcoincharts.com/markets/
It is a thin market. There are restrictions on the rate of growth of Bitcoins, as compared to US dollars, which can be created out of thin air.
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04-05-2011 , 09:55 AM
I don't get it... what is all this computational power used for?
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04-05-2011 , 10:03 AM
I'm baffled by this can someone explain how it works better than those articles? Wtf is going on, whos buying the coins? Whos selling them? What the ****?
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04-05-2011 , 10:07 AM
Wikipedia explains it better imo

http://en.wikipedia.org/wiki/Bitcoin
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04-05-2011 , 10:23 AM
I'm still utterly baffled by what people are mining with that computing power? Hashes?
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04-05-2011 , 11:50 AM
Quote:
Originally Posted by Gullanian
I'm still utterly baffled by what people are mining with that computing power? Hashes?
It seems more useful as a proof of concept more than actually something useful. Decentralized encrypted secure money is pretty cool IMO.
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04-05-2011 , 12:37 PM
I think it's tied to the amount of power used to "mine" the money. Instead of being backed by gold or something physical, it's backed by energy used.
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04-05-2011 , 04:01 PM
Finally found some real number from a more "casual" miner

Quote:
i have slightly overclocked 5970+5870 in dedicated mining rig that runs 24/7 consuming ~550W
(corsair pro 850W + celeron e1200 + 1gb ram on some cheap gigabyte mobo - 5870 is connected to pcie x1)

power consumption is around 400 kWh per month and cost me around 80 euro

not sure how much exactly i have from that unit as i have 6950 in my desktop running as well in the same pool
but my guess is around 400BTC per month

6950 in my desktop that is usually runing miner only during night as it serves few other purposes too
(not sure about power consumption, but it is in 350W+ area)
So he's making ~$150/month off of ~$1500 in hardware that does have residual value when it's obsolete (for the purposes of mining, not gaming).

From reading the forums, it appears people are running 20+ boxes with 4x 5970 in each case, and those are just hte people who are public about it. I think there is a decent opportunity right now to invest in hardware that will pay itself off in 12-18 months (taking mining devaluation into account) assuming you have decent electricity rates.

Pass.
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04-05-2011 , 04:04 PM
And here is a guy selling mining contracts, I guess as an alternative to buying bitcoins yourself

http://www.bitcoin.org/smf/index.php?topic=2883.0
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04-05-2011 , 05:16 PM
$150 off a 1.6ghz PC? I just bought a new hex core AMD 3.2 ghz which I can overclock to 3.8 ghz on each core, with 8gb ddr ram and the system cost me around £800.

I'll download the bit coin miner and see what numbers I can get.
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04-05-2011 , 05:17 PM
Quote:
Originally Posted by Freakin
Finally found some real number from a more "casual" miner



So he's making ~$150/month off of ~$1500 in hardware that does have residual value when it's obsolete (for the purposes of mining, not gaming).

From reading the forums, it appears people are running 20+ boxes with 4x 5970 in each case, and those are just hte people who are public about it. I think there is a decent opportunity right now to invest in hardware that will pay itself off in 12-18 months (taking mining devaluation into account) assuming you have decent electricity rates.

Pass.

This assumes that you'll still be able to sell bitcoins for the same rate then. Gonna be lol when they are worthless.
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04-05-2011 , 05:21 PM
Already got it up generating "blocks"? I think. Still absolutely confused on what it's actually doing and can't find what a good rate of block generation is.

I got 3 connections so far (I think it will make more and this is a bottleneck on total blocks generated) but my CPU usage is <10% on all cores
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04-05-2011 , 05:22 PM
Quote:
Originally Posted by TomCollins
This assumes that you'll still be able to sell bitcoins for the same rate then. Gonna be lol when they are worthless.
Yeah the problem with this currency is it's pretty much untested and extremely volatile, and a better one might come along, or a security flaw might be discovered which will render the currency worthless in seconds
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04-05-2011 , 05:26 PM
Ah ok it's using the GPU to generate blocks which seems weird, as I don't see why it can't use GPU and all my processors as well
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04-05-2011 , 05:29 PM
Also what I'm reading seems to say the electricity consumption is a natural way of controlling the currencies value, if the value of the bit coin decreases, it becomes unprofitable to mine bitcoins, so less people do it, and so there is less supply of bitcoins.

The block generation stage seems to be a verification stage leading up to hash generation, it can take a couple of hours. I'll let it complete, then find out my hash generation rate and work out if this is profitable or not. I still find the concept rather bizarre, magical and pretty awesome potential.

The idea of being able to process payment, and micro payments online without a institution taking extortionate fees is quite compelling. I've always wondered how it would be possible to make micro payments online, the current systems just can't really do it, this seems quite amazing, but very susceptible to your PC being hacked and your account being drained.
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04-05-2011 , 05:44 PM


Im not sure how liquid the currency is to be honest, but it seems that you could make a fair bit buying and selling as this months variation fluctuates around 20% of it's value. I'm a noob but I think the potential to make some money is there, but again the whole currency seems illiquid especially if the total value of bitcoins is only $5m.

Either way, it's potential as a cheaper way to try trading is there. Or even as a trading practise tool.
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04-05-2011 , 06:26 PM
Ok finally started hash generation, running just shy of 10k hashes/s which means:


Probability Time
Average 409 days, 8 hours, 33 minutes
50% 283 days, 17 hours, 51 minutes
95% 1226 days, 7 hours, 44 minutes
http://www.alloscomp.com/bitcoin/calculator.php

So it would take 283 days for there to be a 50% probability I make 50 bitcoins. So 1 year for a 50/50 on $50 lol. I don't see how this is profitable but I will leave it running incase the numbers change.

https://en.bitcoin.it/wiki/Mining_ha...mparison#AMD_2

This chart says my phenom II 6 core should be doing 22 mhash per second so idk what is going on

Edit: Nope, 10khash/s is probably about right. I don't see how anyone can make money doing this. 1 year of running my pc on full throttle for ~+$30 ev

Last edited by Gullanian; 04-05-2011 at 06:39 PM.
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