Bitcoin - KCSR

Protege94 · 2013-04-05, 05:15 PM

Anyone currently own any?

I found out about these probably 2 weeks ago and at the time they were roughly ~$30 a coin. I shrugged it off as a dumb idea and never looked into it. After doing quite a bit of reading and research today I am considering buying 1 or 2 coins just to see what happens. They are currently trading at ~$142 a coin and most analyst say by the end of the year it would be in the $400-$500 range.

The actual process of buying them seems to be quite tedious. Set up an account with MtGox, then place an order through BitInstant and then pay for that order with a cash payment through MoneyGram. Being that Bitcoin is a 100% anonymous way to move cash makes it difficult to just pull your card out and buy.

Spoolin4Door · 2013-04-07, 05:58 PM

It's a really interesting concept but as much as it could increase in value it could also just vanish in the blink of an eye as well.

Hibidi-Shibidi · 2013-04-08, 10:27 AM

There was a guy on reddit that bought in to them for like 30k. He's still riding them out but his initial investment was worth like 125k or something like that right now. I'll see if I can find it.

**Ryan D** · 2013-04-08, 10:51 AM

Isn't this already being looked in to for money laundering?

mild83 · 2013-04-08, 10:57 AM

Quote:

Originally Posted by Ryan D

Isn't this already being looked in to for money laundering?

Yes.

Dooley · 2013-04-08, 11:03 AM

A bunch of the underground websites have used bitcoin for years in terms of doing online drug sales etc. It's a pretty risky investment.

bluerex · 2013-04-08, 11:56 AM

Also, BitCoins have been hacked in the recent past. When that happened, the value of a BC tanked huge.

TaintedNylon · 2013-04-08, 11:59 AM

Quote:

Originally Posted by Ryan D

Isn't this already being looked in to for money laundering?

Mainly because the Feds are legitimately worried bitcoin, in the long-term, will have an impact on various central banks' abilities to use monetary policy.

Albatross · 2013-04-10, 07:00 PM

http://www.businessinsider.com/bitcoin-plunges-2013-4

spikejnz · 2013-04-10, 07:49 PM

Quote:

Originally Posted by bluerex

Also, BitCoins have been hacked in the recent past. When that happened, the value of a BC tanked huge.

Close, but no cigar. Bitcoin wasn't hacked, the world largest Bitcoin trading site was hacked. Since that happened, MTGox had placed huge limits on trading on verified accounts, and require lots of documentation to verify your account. If you're not verified, you can deposit and trade, but not sell.

If you can't tell, the market has significantly recovered. I've bought and sold many btc over the past two years. I mine then on multiple computers, and I have an order in for a new standalone miner.

But, you know, you're the expert and all.

Onetype · 2013-11-18, 08:03 PM

Just broke $800.

Increased $300 just today.

I thought about getting in last week at around $300. But it's a bubble just waiting to burst.

Beowulf · 2013-11-18, 08:51 PM

I'm starting to get involved... can't make a purchase til Friday. We'll see how that goes.

Onetype · 2013-11-18, 11:24 PM

Let us know how it goes.

Even though it's an encrypted currency, you either have to trust a 3rd party to safely hold onto it, or your hard drive/network.

Then the same thing when you sell it (from what I've read).

It seems to be a bubble waiting to burst (which will keep rising as long as China is investing in it), so I've been very skeptical.

That being said if I didn't listen to my rational thinking I would have doubled my $5,000 that I was going to put into it.

**DIYAutoRepair** · 2013-11-19, 03:08 AM

Quote:

Originally Posted by Onetype

Just broke $800.

Increased $300 just today.

I thought about getting in last week at around $300. But it's a bubble just waiting to burst.

Ponzy scheme.

Onetype · 2013-11-19, 04:53 PM

That's what I think most have thought. But it's gaining a lot of ground in other countries such as China & Canada. Even Ben Bernanke stated that it looked promising *shocked*.

That being said, it's still a virtual currency with zero backing.

**DIYAutoRepair** · 2013-11-19, 09:02 PM

Quote:

Originally Posted by Onetype

That being said, it's still a virtual currency with zero backing.

An international ponzy scheme. These are great to get in on at the beginning, you can make a lot of money. The poor saps at the end will get hosed.

I should start selling DIY dollars and guarantee 30% per year.

Justin 05 STi · 2013-11-19, 11:55 PM

What does it take to start mining?

Hibidi-Shibidi · 2013-11-20, 02:40 PM

Quote:

Originally Posted by Justin 05 STi

What does it take to start mining?

At this point, almost more energy than they are worth.

**JDLM** · 2013-11-20, 02:46 PM

Quote:

Originally Posted by Justin 05 STi

What does it take to start mining?

http://startbitcoin.com/

**DIYAutoRepair** · 2013-11-20, 03:38 PM

Quote:

Originally Posted by JDLM

http://startbitcoin.com/

Butterfly labs is a local company here in OP. I know a kid that works there. He said they are so far behind in filling orders that by the time you get your machine, it's so outdated you can't make any money.

Justin 05 STi · 2013-11-20, 05:24 PM

Quote:

Originally Posted by Hibidi-Shibidi

At this point, almost more energy than they are worth.

Quote:

Originally Posted by JDLM

http://startbitcoin.com/

Quote:

Originally Posted by DIYAutoRepair

Butterfly labs is a local company here in OP. I know a kid that works there. He said they are so far behind in filling orders that by the time you get your machine, it's so outdated you can't make any money.

Thanks for the replies. I also did some searching and wanted to share some good stuff I came across.

Video URL: http://www.youtube.com/watch?v=GmOzih6I1zs

http://www.extremetech.com/computing...bitcoin-mining

https://en.bitcoin.it/wiki/Mining_hardware_comparison

It is pretty crazy they are already to the point of needing hardware tailored specifically to the mining process.

I am also curious about the end result of all the number crunching. It seems analogous to something like SETI @ Home, but they are very open about the purpose of running their software. I haven't read anything more descriptive of bitcoin mining beyond "solving complex math problems".

Justin 05 STi · 2013-11-21, 08:53 AM

This is the best explanation I've found so far.

My mind is still blown at all of the energy / CPU cycles that go just towards the currency itself.

https://en.bitcoin.it/wiki/FAQ#Mining

Quote:

What is mining?
Mining is the process of spending computation power to secure Bitcoin transactions against reversal and introducing new Bitcoins to the system.
Technically speaking, mining is the calculation of a hash of the a block header, which includes among other things a reference to the previous block, a hash of a set of transactions and a nonce. If the hash value is found to be less than the current target (which is inversely proportional to the difficulty), a new block is formed and the miner gets the newly generated Bitcoins (25 per block at current levels). If the hash is not less than the current target, a new nonce is tried, and a new hash is calculated. This is done millions of times per second by each miner.

Is mining used for some useful computation?
The computations done when mining are internal to Bitcoin and not related to any other distributed computing projects. They serve the purpose of securing the Bitcoin network, which is useful.

Is it not a waste of energy?
Spending energy on creating and securing a free monetary system is hardly a waste. Also, services necessary for the operation of currently widespread monetary systems, such as banks and credit card companies, also spend energy, arguably more than Bitcoin would.

Why don't we use calculations that are also useful for some other purpose?
To provide security for the Bitcoin network, the calculations involved need to have some very specific features. These features are incompatible with leveraging the computation for other purposes.

Hibidi-Shibidi · 2013-11-21, 02:44 PM

Did you figure out the rate in which it can mine?

Looks like one of the cheaper Butterfly Labs machine is running $1,275. Then the energy consumption of letting it run all day every day. Maybe .50 per day? So $15 per month?

I guess you have to watch the market fluctuations as well and just sell what you have at a premium to get your return.

I honestly don't know what these generate per month though. 1 Bitcoin? so maybe $300-500 per month if you sell right?

So on the low end ($300) it takes about 4.5 months to get to break even. Plus the technology is moving forward so fast, like DIY was talking about, that it may be even longer.

Hegro · 2013-11-21, 03:30 PM

Thought I read somewhere that at this point there are so many people involved it isn't even worth it to mine anymore?

Hibidi-Shibidi · 2013-11-21, 03:32 PM

Quote:

Originally Posted by Hegro

Thought I read somewhere that at this point there are so many people involved it isn't even worth it to mine anymore?

Thats what I had read but don't remember where. It's at the point where it is taking so much energy and computing power that its barely if not at all profitable.

2013-04-05, 05:15 PM	#1
Protege94 Join Date: Aug 2006 Location: Kansas City, MO Posts: 4,404 Post Thanks / Like Thanks (Given): 10 Thanks (Received): 28 Likes (Given): 16 Likes (Received): 98 Dislikes (Given): 0 Dislikes (Received): 20	Bitcoin Anyone currently own any? I found out about these probably 2 weeks ago and at the time they were roughly ~$30 a coin. I shrugged it off as a dumb idea and never looked into it. After doing quite a bit of reading and research today I am considering buying 1 or 2 coins just to see what happens. They are currently trading at ~$142 a coin and most analyst say by the end of the year it would be in the $400-$500 range. The actual process of buying them seems to be quite tedious. Set up an account with MtGox, then place an order through BitInstant and then pay for that order with a cash payment through MoneyGram. Being that Bitcoin is a 100% anonymous way to move cash makes it difficult to just pull your card out and buy. __________________ Dedicated Mu Fan! 1998 Civic EX

2013-04-07, 05:58 PM	#2
Spoolin4Door Join Date: Mar 2005 Location: The Cleaver State Posts: 9,084 Post Thanks / Like	It's a really interesting concept but as much as it could increase in value it could also just vanish in the blink of an eye as well. __________________ \m/>..<\m/

2013-11-18, 08:03 PM	#11
Onetype Join Date: Jul 2012 Location: Austin, Texas Posts: 543 Post Thanks / Like Thanks (Given): 2 Thanks (Received): 5 Likes (Given): 63 Likes (Received): 62 Dislikes (Given): 0 Dislikes (Received): 0	Just broke $800. Increased $300 just today. I thought about getting in last week at around $300. But it's a bubble just waiting to burst. __________________

2013-11-18, 11:24 PM	#13
Onetype Join Date: Jul 2012 Location: Austin, Texas Posts: 543 Post Thanks / Like Thanks (Given): 2 Thanks (Received): 5 Likes (Given): 63 Likes (Received): 62 Dislikes (Given): 0 Dislikes (Received): 0	Let us know how it goes. Even though it's an encrypted currency, you either have to trust a 3rd party to safely hold onto it, or your hard drive/network. Then the same thing when you sell it (from what I've read). It seems to be a bubble waiting to burst (which will keep rising as long as China is investing in it), so I've been very skeptical. That being said if I didn't listen to my rational thinking I would have doubled my $5,000 that I was going to put into it. __________________ Last edited by Onetype; 2013-11-18 at 11:27 PM..

2013-11-19, 04:53 PM	#15
Onetype Join Date: Jul 2012 Location: Austin, Texas Posts: 543 Post Thanks / Like Thanks (Given): 2 Thanks (Received): 5 Likes (Given): 63 Likes (Received): 62 Dislikes (Given): 0 Dislikes (Received): 0	That's what I think most have thought. But it's gaining a lot of ground in other countries such as China & Canada. Even Ben Bernanke stated that it looked promising shocked. That being said, it's still a virtual currency with zero backing. __________________

2013-04-08, 10:27 AM	#3
Hibidi-Shibidi Delivers Join Date: Aug 2004 Posts: 24,451 Post Thanks / Like Thanks (Given): 18 Thanks (Received): 140 Likes (Given): 33 Likes (Received): 932 Dislikes (Given): 0 Dislikes (Received): 18	There was a guy on reddit that bought in to them for like 30k. He's still riding them out but his initial investment was worth like 125k or something like that right now. I'll see if I can find it.

2013-04-08, 10:51 AM	#4
Ryan D Custom User Title Join Date: Feb 2004 Posts: 45,166 Post Thanks / Like Thanks (Given): 30 Thanks (Received): 175 Likes (Given): 91 Likes (Received): 1288 Dislikes (Given): 28 Dislikes (Received): 212	Isn't this already being looked in to for money laundering?

2013-04-08, 11:03 AM	#6
Dooley Join Date: Dec 2012 Posts: 55 Post Thanks / Like Thanks (Given): 0 Thanks (Received): 0 Likes (Given): 0 Likes (Received): 4 Dislikes (Given): 0 Dislikes (Received): 0	A bunch of the underground websites have used bitcoin for years in terms of doing online drug sales etc. It's a pretty risky investment.

2013-04-08, 11:56 AM	#7
bluerex Join Date: Feb 2004 Location: Lawrence, KS Posts: 4,519 Post Thanks / Like	Also, BitCoins have been hacked in the recent past. When that happened, the value of a BC tanked huge.

2013-04-10, 07:00 PM	#9
Albatross Join Date: Feb 2004 Location: Jersey Shore Posts: 17,316 Post Thanks / Like Thanks (Given): 100 Thanks (Received): 189 Likes (Given): 277 Likes (Received): 1330 Dislikes (Given): 4 Dislikes (Received): 71	http://www.businessinsider.com/bitcoin-plunges-2013-4

2013-11-21, 02:44 PM	#23
Hibidi-Shibidi Delivers Join Date: Aug 2004 Posts: 24,451 Post Thanks / Like Thanks (Given): 18 Thanks (Received): 140 Likes (Given): 33 Likes (Received): 932 Dislikes (Given): 0 Dislikes (Received): 18	Did you figure out the rate in which it can mine? Looks like one of the cheaper Butterfly Labs machine is running $1,275. Then the energy consumption of letting it run all day every day. Maybe .50 per day? So $15 per month? I guess you have to watch the market fluctuations as well and just sell what you have at a premium to get your return. I honestly don't know what these generate per month though. 1 Bitcoin? so maybe $300-500 per month if you sell right? So on the low end ($300) it takes about 4.5 months to get to break even. Plus the technology is moving forward so fast, like DIY was talking about, that it may be even longer.

2013-11-21, 03:30 PM	#24
Hegro Join Date: Feb 2009 Location: Around.. Posts: 2,360 Post Thanks / Like Thanks (Given): 37 Thanks (Received): 32 Likes (Given): 117 Likes (Received): 193 Dislikes (Given): 7 Dislikes (Received): 7	Thought I read somewhere that at this point there are so many people involved it isn't even worth it to mine anymore? __________________