So if I have this right a $1300 ASIC Miner will out do all those computers. The Video claims 48 gh when fully upgraded. This $1300 miner will do 60gh.
Bitcoin Mining Hardware 60 GH/s Bitcoin Miner - Homepage Hero Product - Butterfly Labs

well that video was posted a year n a half ago.... and the ASIC miner needs a host machine to work? how much is a host machine? or can any computer be turned to a host with proper software?

if that guy has been mining with that much hardware since June 2011, and assuming he had 0 bitcoins at that time (which is not possible because he looks like a really early adoptor), his bitcoins would be worth $5-6 million dollars today.

I understand the idea of bitcoin mining, getting paid to find the hash solution to a data block with distributed computing.

What I don't understand is what the significance of the data block and solution is once it's found or what it's used for?

Like I always thought this was something like SETI@home, or Folding@home. In those cases you're running the math on a bunch of science data, and the end result is that a discovery or whatever might be made.

It's like solving a bunch of math problems and getting rewarded for the answer. Nothing happens to the solution. It's just a way to make it so that bitcoins release slowly over time.

The host machine can be something like a Raspberry Pi from what I understand. The less power used by the host computer the better.

That's what I was struggling to understand, I was thinking the math problems had some sort of significance.

so whats stopping some nerds from creating billions of bitcoins?

how are governments/banks going to impede its use? if they aren't that just has me suspicious /tinfoil hat


:)




hmmm started by MIT has me even more :suspicious:

CIA has us processing sensitive information and giving us "coins" for it




http://tucsoncitizen.com/hispanic-po...n-foil-hat.jpg

Because there are only 21 million bit coins total.

I'm not saying it can't be hacked but it's pretty secure. It's not being controlled by the government. If you really want to you can download the entire registry and micro-evaluate every transaction that has ever occured.

for now
and there are only so many $1, $5, $10, $20, $50, $100 bills out there but that hasn't stopped counterfeiters before

same with Credit Cards


from the video above it states each transaction is verified by a miner so wouldn't any hackers just need a server acting as their own miner to get their transactions through? (even if they cant pass all their transactions through their own server) and to better get their fake transactions through get enough servers together so that they can "verify" the majority of bitcoin transactions?




anyway seems neat but way too early




edit: or if the coins are truly secure and limited; couldn't they feed their own servers with the necessary information to mine coins so that they get the majority of the coins available?


i dunno :fulloffuck:

Bit coins are not physical coins and control c control v will not work.

maybe i wasn't clear but i meant there must be someway for hackers to reproduce them

or running fake transactions through their own servers

etc, i dunno seems fishy especially with no governing body which i think will eventually be a necessity


just found this seems interesting especially reason #2

https://www.privateinternetaccess.co...at-to-bitcoin/

Woohoo I have 0.02054063 internets :fullofwin:

BTW bitcoin is up to $54 now, you better start mining before the ASIC hardware starts hitting the masses ;)

I mine full time at about 800 m/s

Man, I wonder how much money I could've made if I started bitmining a few years ago when Ulic first made the thread..

Was always discouraged since my hardware wasn't very great, even more so now that I have a MBA :lol

Looking again at the graph what Skinny posted..

HD7870 = $62USD revenue a month and it has a hash rate of roughly 400 megahash

A 30 gigahash for sale (https://products.butterflylabs.com/3...oin-miner.html) will produce roughly 75 times more bitcoins than the HD7870 = $4650

Of course with variations in the bitcoin market taken into consideration, it still doesn't seem very hard to make the money you spent on the ASIC + money on the side.

Maybe there's more to it that someone wants to explain? More people mining = less bitcoins to be produced?

Yup as more people mine (or more accurately, better mining hardware is released) the rate at which coins are released goes down. So if you are making $62 a month at 400 Mh, it might go down to $5 a month - or less - eventually. It will get to the point where for sure even the best video cards aren't worth the power cost.

BFL is about to release a bunch of hardware that is VERY cheap ($130 is the cheapest one) that will completely change mining. You WILL have to buy this kind of hardware if you want to mine.

Is anyone doing any investing with bitcoins? Seems risky as fuck, but I'm definitely interested.

EDIT: I think if the current "bubble" bursts, I'll invest. But at the same time, I really wonder if it's going to drop down in prices.. this shit seems to hold value.

Yeah it's tempting but risky. if I bought a week ago I would've gotten a gain of 25%.

Problem I have with bitcoins is that they are run like fiat currency but is run and stored digitally.

First off, is that no code or system design is ever perfect, if there is money to be made, someone will find a way to exploit it.

Second off, unlike traditional fiat currency, it is not backed by or regulated by anything. We have no entity that ensure it's value or have considerable power to do so (eg. banks and govt.) So this 'currency' is only valued as much as the market values them, so they can blow up in a moments notice, a potential ponzi scheme you may say. Because of this, it can easily become a pump and dump.

But it certainly does look tempting, buying couple hundred to thousand dollars worth of hardware, and sitting back and making it rain. Sounds too good to be true? Maybe.

But then again, what is the loss? Electricity, and just some computer hardware at most (if you have no other use for it.) So if you're gonna do it, don't hoard and hold long, make what you can leave when the time is appropriate.

Just IMO.

woot over 50 :)

I think BFL may be a scam. Take a bunch of pre orders close shop and keep the money.

this is the first time i heard anything about this

yeah i made a thread a year or two back.

for all you guys thinking quick buck get rich fast... good luck. it's not gonna work.

to mine 24/7... the computer doing it is rendered useless. so it's not just the cost of the card, but the cost of the computer (cuz you're not gonna be able to use the computer while its mining).

and like i said earlier.. once these ASICS hit... your mining will become useless.


if u had an ASIC... RIGHT NOW... go for it... mine all you can. but none of u guys will be able to get your hands on one for a few months at least. so... yeah.

for "newbs" that duno much about computer stuff.. forget it. you're gonna lose your wallet or someone's gonna hack it or whatever. you're gonna fuck it up somehow.


as for speculation... if you have some money.. yeah it might be good to buy some bitcoins and sell when its high and buy back when its low. lots of ppl have made money speculating/trading... but then if you're gonna do that... there's real markets u can trade.

no different that buying any other market (stock markets, derivatives etc).

bitcoins are not regulated and not insured. if it crashes and goes to 0. you're out.


lol, at my work RCMP guys come in to lecture us and teach us "money laundering" stuff.
I raised the question of bitcoins... cuz it's probably a haven for small time money laundering.

lol you know what their answer was?

"like any other threat, if it becomes too big, the CIA will crash it and destroy it".

i haven't heard anything more true than that.

so... if you can bank at least 100 bux a month (sacrificing a machine) after all your overhead costs.... sure go ahead and do it. lol.

but i can think of a lot more ways to make a lot more money a lot faster.

that being said...lol... i shoulda bought an ASIC months back :p



don't get me wrong, tons of ppl (kids to adults) have made hundreds of thousands of dollars, or millions even. but you're not them. and you're not gonna be them. you're all hopping on the bandwagon at the very end tail. these guys were on it since the beginning, and they have better computer skills than you. they know what they're doing. and they mine this shit, and they speculate this shit on top of mining.
Their life revolves around this shit. it is their life, their job etc.


this isnt some get rich quick thing. if you wanna do it, it will become your main hobby/life etc. if it isn't you'll just be making chump change. and you STILL have to find a way to convert it to real cash...

Unless you're gonna use the bitcoins on silkroad to buy illegal drugs and services. lol.

are you also calculating the power consumed? that setup probably sucks up A LOT of power. and depending on where he's located... he's probably paying a lot more for electricity than we are.



by the way, there are cases where cops come knocking on ppl's door because of the power consumption spike. the patterns are very similar to grow ops. so just watch out for that too.