Silk Road forums

Discussion => Off topic => Topic started by: SmashBros on June 17, 2013, 10:07 pm

Title: Bitcoin mining
Post by: SmashBros on June 17, 2013, 10:07 pm
Not going to go into detail with what it is I just want to know if anyone uses it?
will explain more if people like


thanks
Title: Re: Bitcoin mining
Post by: Luvs2Trip on June 18, 2013, 08:41 am
I did attempt to do some bitcion mining but as i don't have a proper mining rig it just wasn't worth it!! Couldn't afford a mining rig but I'm told that they do pay for them self quite quickly.
Title: Re: Bitcoin mining
Post by: Oldschool on June 18, 2013, 12:04 pm
Been mining bitcoin at 130m/hash for the last 2 years. finally changed over to litecoin as the asics have been smashing the difficulty
Title: Re: Bitcoin mining
Post by: seafrog92 on June 18, 2013, 04:29 pm
isnt bitcoin mining the main reason BTC jumped from 19 to 110 dollars?
Title: Re: Bitcoin mining
Post by: Oldschool on June 20, 2013, 12:08 pm
isnt bitcoin mining the main reason BTC jumped from 19 to 110 dollars?

The value jumping all over the place is usually from day traders and speculators manipulating the market for profit (pump and dump). The jump from 19 to 110 was a market correction to the currency's true $usd value. 110 to 280 was from the speculators cashing out of US/Euro into digital gold. The big drops in value were traditionally from early adopters cashing out and more recently hackers bringing down the infrastructure. As more and more currency stays in circulation the currency will become more stable. I believe bitcoin has at least a 10-20 year life left!

My question: Is bitcoin considered a fiat currency? or as stated, simply a crypto currency.
Title: Re: Bitcoin mining
Post by: mcguire39 on June 20, 2013, 01:05 pm
That's interesting about the mining rigs. I've seen they typically go for a good price and are very popular. I would imagine the profitability varies with how difficult they make it to get the right number of leading zeros, and of course with the value of the BTC.

The BTC I would think is considered a fiat; I mean, it is not backed by anything physical such as gold or silver is it?

You can definitely see the manipulation in the market. When there are big price swings, there is also heavy volume. I'm guessing there are group(s) of people banded together, where you must have a certain amount of BTC available to join in, then on certain intervals they sell heavily to push the price down, then immediately buy on the lower price and make a fairly fast, easy profit. The more BTC in circulation the harder that will be to do but it's not really much different than other markets.
Title: Re: Bitcoin mining
Post by: PerPETualMOtion on June 20, 2013, 08:03 pm
I mined 0.01 BTC through 50BTC. Made ~0.05 BTC through Satoshi Dice, then lost it to Satoshi Dice. That took me 3 days to mine, 7 days to gamble, and one click to lose it all. Happy to say that's all I've lost to Satoshi Dice. I'd rather do drugs than gamble anyway.
Title: Re: Bitcoin mining
Post by: mcguire39 on June 21, 2013, 04:53 pm
I mined 0.01 BTC through 50BTC. Made ~0.05 BTC through Satoshi Dice, then lost it to Satoshi Dice. That took me 3 days to mine, 7 days to gamble, and one click to lose it all. Happy to say that's all I've lost to Satoshi Dice. I'd rather do drugs than gamble anyway.

Sorry to hear about your loss. Are you saying you were able to mine 50BTC in 3 days? What kind of rig was that?
Title: Re: Bitcoin mining
Post by: leaf on June 21, 2013, 08:57 pm
pro-tip:  bitcoin mining generates clean/fresh coins
Title: Re: Bitcoin mining
Post by: mcguire39 on June 22, 2013, 01:47 am
pro-tip:  bitcoin mining generates clean/fresh coins

Ahhhh interesting. So even if the effective cost per BTC by mining is slightly above the current BTC value it can be worth it specifically for getting fresh clean coins?
Title: Re: Bitcoin mining
Post by: PerPETualMOtion on June 22, 2013, 03:37 am
pro-tip:  bitcoin mining generates clean/fresh coins

ASICS coupled with a few neural nets, and fresh coins are like dust in the wind.

Keep mining, my friends.
Title: Re: Bitcoin mining
Post by: leaf on June 22, 2013, 05:58 pm
pro-tip:  bitcoin mining generates clean/fresh coins

Ahhhh interesting. So even if the effective cost per BTC by mining is slightly above the current BTC value it can be worth it specifically for getting fresh clean coins?

Bitcoins nature allows certain chains of transactions to be blacklisted.  Fresh coins are newly minted, have a alibi, and are largely unidentified.  I think they are always worth more then coins with a long transaction history.
Title: Re: Bitcoin mining
Post by: goblin on June 22, 2013, 06:39 pm
The BTC I would think is considered a fiat; I mean, it is not backed by anything physical such as gold or silver is it?
I would think not. Fiat currency is that put out by governments, which is controlled by governments and central bankers and their crony banksters. Also, prone to massive expansion via money printing and quantitative easing which leads to devaluation and eventual (one hopes) collapse. Bitcoin has none of these characteristics, it's truly an anti-central planning currency, and cannot, by design, be overcreated and lead to devaluation, unless that is accomplished by speculators. If anything, the only direction for it to go is up, in the long run.

goblin
Title: Re: Bitcoin mining
Post by: leaf on June 22, 2013, 07:15 pm
I also believe that BTC is not a fiat.   It does have a representable value in gold/silver/drugs and it is backed by these things, in a federated network of producers/buyers/sellers that will trade any number of stored goods for control of more contracts.  Until BTC can be counterfeited or printed irresponsibly it is something wildly different.
Title: Re: Bitcoin mining
Post by: leaf on June 23, 2013, 04:52 pm
However that doesn't mean that something similar couldn't happen again one day. :(

I wonder if it could happen with out the majority of users noticing something was amiss.  180billion new bitcoins are kinda hard to miss :)
Title: Re: Bitcoin mining
Post by: SmashBros on June 24, 2013, 02:24 am
If I get a server set up with good specs I could generate a lot of coins from hosting a mining pool.

would this work and if so I would like some good inside
Title: Re: Bitcoin mining
Post by: leaf on June 25, 2013, 04:53 pm
If I get a server set up with good specs I could generate a lot of coins from hosting a mining pool.

would this work and if so I would like some good inside

You would need many miners on your pool to generate any substantial coin
Title: Re: Bitcoin mining
Post by: mcguire39 on June 25, 2013, 07:46 pm
How much does the cost of electricity play into profitability of bitcoin mining?

I've noticed pretty much all the FPGA miners even in the $3000 range get a lot of bids on the auction sites.
Title: Re: Bitcoin mining
Post by: SmashBros on June 26, 2013, 11:18 pm
If I get a server set up with good specs I could generate a lot of coins from hosting a mining pool.

would this work and if so I would like some good inside

You would need many miners on your pool to generate any substantial coin
Somebody I know infects people so little do they know they are mining for him
Title: Re: Bitcoin mining
Post by: PerPETualMOtion on July 01, 2013, 03:44 am
There's a wealth of knowledge on bitcointalk.org, but it is a forum, so there is a lot of reading to catch up on the scene.

Avalon chips from China are a good way to go if you can assemble/manufacture boards (pcb). There are a few people in the works for assemblying K16 boards, which seem promising, but no final word yet. BFL have basically made millions without actually fulfilling orders. TerraHash is another up-and-comer. Personally, I am looking at KnCMiner.com, a Swedish company. They make a Saturn and Jupiter at 200 and 400 Gh/s at 3,795$ and 6,995$, respectively. Shipping begins in September. They accept bitcoin (bitpay), paypal, and bank transfer.

I was going to play around building a few K16 boards, since material costs for the board assembly before the Avalon chips is less than $50, most of the parts coming from Mouser.

Cheers.