My Bitcoin Challenge and Journey

[mhatter]

Since the browser java miner only uses the CPU to mine (for now), then let's say the max someone will mine at is 5 megahashes/s. 5 megahashes/s * 250 ppl is 1250 megahashes/s IF everyone keeps your website loaded 24/7. So keep dividing that 1250 by how long a visitor stays on your site and you'll see that it's not worth it unless you get a shitload of hits/day and the people stay for 30sec+.

 

[florflor]

hehe I checked my stats and it mined a total of 0.00009256 BTC for me! Which is worth next to nothing! Annoyingly I can't even test anything cuz I can only cash out 0.01 BTC or more.

You better check the mining, I've been looking at the yields. Guys on the bitcoin.org forum offering mining and you can barely make 15%. And right now the price is mega-volatile.

Really bad time to be trading/investing or mining IMO. Either now is the last time to get in or the price could go south soon. Who knows.

 

[PerfectChoice4u]

guys on the bitcoin.org have mixed feelings, as with any economy, im perfectchoice4u on there as well. Some people feel mining gotten too hard, but really, its just becoming that its too hard for the "casual" person.

Sadly the later u get in the game the harder it will be. But hopefully i havent completely missed the boat.

As far as making next to nothing having it on and embedded in your site, the only way thats going to work i think is to have it in mass, 10's of 1000's of people a day

 

[Discount]

Good luck, I've gotten into Bitcoins as well. Just a different approach, mining isn't really a profitable investment any more now that the difficult has increased

 

[hawke]

Considering the current trade value is between $15 -$18 USD per bitcoin.... now is the time to invest

A $400 minig rig with dual 5900's could make it's money back the first week, then it's all profit.... multiply that by 3-6 machines

Cha-ching

PS- Minig won't last forever.... you snooze you lose

 

[mhatter]

No it wouldn't. See http://www.alloscomp.com/bitcoin/calculator.php

 

[florflor]

Considering the current trade value is between $15 -$18 USD per bitcoin.... now is the time to invest

A $400 minig rig with dual 5900's could make it's money back the first week, then it's all profit.... multiply that by 3-6 machines

Cha-ching

PS- Minig won't last forever.... you snooze you lose

You sure about that? I have yet to hear of anyone making their capital investment back in a week. I think that's impossible with mining right now.

 

[tshin810]

You forgot a vital factor: difficulty increment. Recently difficulty increased around 3 times per month, each time increase 50% difficulty.

Let's assume you have 3.2GH/s hashing power, which mean you can get around 3.6BTC OR 63USD per day. After next update, lets say difficulty increase 50% again, your earning cut half, that's mean you get 1.8 BTC per day. Let's say only 2 difficulty update for the month, your earning will be down to 0.9BTC per day. It will become worse and worse, and 3.2GH/s means nothing after few months.

If you really want to start farming bitcoin, I suggest you get HD5850 instead of HD6970 as HD5850 can easily get 300~350MH/s and it's cheap (around 150 USD). Please read more on bitcoin forum about hash/$ and this will safe lots of your money.

You might want to try namecoin also, as it has huge potential to boost up it's value.

 

[PerfectChoice4u]

There's a lot of talk about the mining rig "jig" being up on the bitcoin forums themselves. I still think there's some room, and I will cut and past my post on there, as I feel it really helps the discussion here.

http://forum.bitcoin.org/index.php?topic=18565.0;all

I decided to get into the bitcoin mining business recently, and have other bitcoin projects going.
I should be coming online to about 3.2ghash's in about a week, this cost me $4400

The only problem I see is with scale, and your cost of electricity. But really, the electric only matters as to when u get to your breaking even point. Maybe I'm just lucky my electrics low, 8c a kw hr at peak

The way I see it, its 8 weeks to break even on equipment if bitcoins stay at $15-20 a piece.

And really, when it comes to "breaking even" you also have to factor in being able to sell the machines too. I'm sure i could get $500 per pc with a ATI 6970 in it (yeah i know i should have gotten a different cheaper card live and learn), but thats 8x500=$4,000

So, really I only have to make $400 before I "break even"

Now I got kinda lucky because i had 8 pc's laying around. But u can get a cheap $200 dollar old computer and pay the $550 I paid per cheap Pc (power supply, video card, I got some other stuff put in too that was unneeded). So say total you pay $750 per machine, that you can realistically resell for $500. But lets say you want to be conservative, and say $450 a machine resale on CL, eBay, etc

So your looking at $750x8 (in my case), and your getting 3.2ghash/s. Total you paid $6000. Selling them off fire sale prices you can get $3600 back meaning you need to make only $2400 to "break even", not $6k

3.2ghash's @ $15 a bitcoin @ 877226.666667 is $1,673.09 per http://www.alloscomp.com/bitcoin/calculator.php
$1,673.09 divided by 30 = $55.75
$2400 divided by $55.75 = 43.wholebunchofnumbers days

So if u wanted to step into the market today with $6,000 after 43 days u would be pure profit to the tune of $390 a week

Mind you, I've overstated expenses, and understated earnings and prices u can receive too make WORST CASE SCENARIOS

The matter is scale. 400mhash's is a piss in the pot. I only got 3.2g as a starter to see how it goes, but if it goes well I will be scaling.

 

[PerfectChoice4u]

Oh, btw, theres are VERY valid posts about the HD 5850 ati cards. I want to really address them.

Its AMAZING to see that you type in HD5850 or 5850 into google, and see results come up at the retail price, sometimes even lower. Right now if u do that, you will see them priced anywhere from 119-350. But theres a catch...

If you look at the sites "sold out" comes up. Okay odd, a fluke right?
Next one, "sold out"
"out of stock"
"back-order only"

Over and over and over again.
So while it might be a viable option, the demand, obviously by miners, is so high that they are being scooped up as soon as they are in stock within minutes or hours.

Look on newegg. Sold out of all makes and models.

 

[tshin810]

Ya, I noticed that it's hard to find HD5850 in US now. I still can get new 5850 @ 167USD in my country.

 

[florflor]

I got rid of the plugin.

The minimum payout was 0.01 BTC which is like 17 cents and it would take me 200 days to get that! F**K that!

One of the biggest problems with bitcoins is like that plugin. It's "run" largely by guys who are into computers but don't really know how the real world works.

This currency is far from secure and people know it. The miners don't mind because they are profitable no matter what (though that is soon set to end). For the profitable miners, there is no risk.

For everyone else, your money could become like the Marks in the Weimar Republic i.e. worthless.

Just wait till the panic sets in, all the early adopters will sell to get out while they can and the "currency" will be finished.

 

[billygood]

Hell, for all this, I would just create some illegal bot's, park them on multiple machines, and all of them join a pool. just think, you have 20,000 machines running a miner, and they work for 2 to 3 hours per day, before you know it, your mining 10 to 20 coins per day with the pool you join ( most likely more ).

 

[Roparadise]

Are you guys calculating that the difficulty keeps increasing? As more people get alot of gpu's and start mining the change rate gets quicker.

 

[florflor]

lol Mt Gox got hacked and the username and email list and hashed passwords is out.

 

[lancis]

Nothing major, someone hacked a $8,000,000 worth account and sold all its bitcoins (about 500,000). Then cashed out with $1000. Shit happens, life moves on.

 

[mhatter]

@PerfectChoice4u - It appears that you still don't understand the difficulty concept. The calulator is only valid for about 7-14 days and the difficulty will change. People are trying to tell you this but you aren't acknowledging this fact.

 

[PerfectChoice4u]

Yeah that shit was nuts with the exchange today. The Mt Gox exchange was hacked hardcore, and basically shut down. But what I thought was most interesting about the whole thing was something that's kinda been overlooked

source
http://www.dailytech.com/Inside+the+MegaHack+of+Bitcoin+the+Full+Story/article21942.htm

"So far I have 10 known cases of people whose coins were stolen (someone logged in on the account using their password, traded USD for BTC, withdrew all the BTC). Considering we have now over 60000 accounts (2 months ago we had 10 times less), this seems to be a problem coming mainly from users."

Others report over 61,000 accounts, That's a LOT of people buying and selling bitcoins. And those are just people on THAT exchange, not all the bitcoin users. This bitcoin stuff is bigger than we think...

 

[florflor]

Nothing major, someone hacked a $8,000,000 worth account and sold all its bitcoins (about 500,000). Then cashed out with $1000. Shit happens, life moves on.

Nothing major?

Apparently a great deal of those hashed passwords are easily decoded.

The biggest exchange for bitcoin was seriously compromised. Sure, the guy left his mark on one account as he left but many more were compromised already and people lost money.

Now you have a situation where the biggest and most trusted exchange is totally untrusted. Could be the end of bitcoin.

 

[niy12]

Will be following, GL!