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BITCOIN - mining 4 a year now

Discussion in 'CryptoCurrency' started by nappy-headed, Jun 11, 2011.

  1. nappy-headed

    nappy-headed Newbie

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    Anyone else doing Bitcoin mining?
    I make about 8 blocks(50) a week with my computer(s). USING HYPER-V as one new platforms now. the others are linux

    The market seems great.
    bitcoincharts*c*m/markets

    dwolla.c*m

    I am looking for others??


    Bitcoins Basics

    Bitcoins is a new virtual or electronic currency created in 2009 by Satoshi Nakamoto. It was developed on a peer to peer network so that rather then have a government or central bank look over all the transactions the network polices itself based on its members. The larger the network the more secure it is. The transactions become common knowledge to the system. You are assigned a encryption code and which you then use to send and receive money. Once money has been sent or received, the networks sends you multiple confirmations to show the network has recorded the transaction.


    This virtual currency may be a new concept to you, but to those mining bitcoins all over the world, it is more than just a passing fad


    Any donations are greatly appreciated
    1GbQCjofwhAAVCq57WMKkXZmbqhBf9ZvSH
     
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    Last edited: Jun 11, 2011
  2. ContentCreation

    ContentCreation BANNED BANNED

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    Iv been reading a lot about this .. what exactly is mining? :S
     
  3. nappy-headed

    nappy-headed Newbie

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    Bitcoins Mining

    Initially Bitcoins mining was done by your cpu when you downloaded the initial Bitcoins software. The whole purpose was to reward you every time you finished a block. You recieve 50 coins for every block. The blocks are encryption to ad security to Bitcoins so you are being paid in Bitcoins to build the system. as the complexity goes up the bounty goes down as adding to an already very complex system is not as valuable. Bitcoins mining has made the largest peer to peer network in the world with more computing power then the largest super computer. The average CPU is now too small to make an effect on the system in your lifetime so the effect of just downloading the Bitcoins software and to begin mining is minimal at best.

    Bitcoins Mining Evolution


    Bitcoin mining has changed as the power of the average CPU is too small to effect the system or "mine". So software has been developed to use the Graphics Processing Unit or GPU. The specialized software allows the peer to peer network to use your GPU to add the encryption. You are then rewarded with Bitcoins. Do to how they are made ATI's graphics cards are much preferred over Nvidia's. Miners have setups that link many graphics cards together in order to increase the value of their mining operation. The more computing power, the more they are rewarded. Eventually mining Bitcoins will cost more in hardware and electricity then it is worth. But the sheer volume of people in the peer to peer network will make up for the lack of a true commercial "miner".

    Bitcoins Mining Pools


    Bitcoins mining was started as a solo endeavor but the rewards were then spread out a period time with a single miner lucky if he hit a Bitcoins cache every few weeks on average. So again software developers came up with an idea. Pool the miners together so that they would be rewarded more often and in equal shares to the computing power that they added to the pool. Some pools take a small fee for setting it up and others are free. For a while one large pool was over 50% of the total mining capacity. This was not considered a good thing by many as they would have the data of half the blocks and thus a possible security leak (See Bitcoins Security). This has since been resolved. There are several strategies and ideas behind different Bitcoins mining pool.

    Any donations are greatly appreciated
    1GbQCjofwhAAVCq57WMKkXZmbqhBf9ZvSH
     
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    Last edited: Jun 11, 2011
  4. GrizzlyAdams

    GrizzlyAdams Regular Member

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    Do you have any faith that the people who own a lot of the market aren't just going to eventually dump all their bitcoins once it gets to a high enough price?
     
  5. scriptomania

    scriptomania Junior Member

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    Oh man, this bring back old memories...
    Used to do that, not any more though.
    Bitcoins rule
     
  6. ContentCreation

    ContentCreation BANNED BANNED

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    Sounds good, but how would i go about doing this? It sounds fun :D If you are looking for more people, im always up for new things, hit me up!
     
  7. GrizzlyAdams

    GrizzlyAdams Regular Member

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    http://forum.bitcoin.org/
     
  8. nappy-headed

    nappy-headed Newbie

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    supply and demand - see the market url.
    bitcoincharts*c*m/markets


    NO ONE can laugh this off - only fools.

    This new offering is like Google Stock and has been around for some time, many did not know about BTC

    I found it funny to read on this forum how many are running "projects" on CL and other sites "fiverr" and have not spoken about BTC (bitcoins) for months now.

    yes do read the forum
    forum*bitcoin*org

    unlike this forum, I can not post links here....lol
     
    Last edited: Jun 11, 2011
  9. ContentCreation

    ContentCreation BANNED BANNED

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    It all looks over complicated and very game like, is there actually any money in this?
     
  10. nappy-headed

    nappy-headed Newbie

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    This is HUGE, I paid off my mining computers in a month and the 4 system were $6k.

    Do the math your self

    hxxp://i55.tinypic.com/90ycfl.jpg


    Thanks this is my last post ...this forum is locked down..thanks
     
    Last edited: Jun 11, 2011
  11. JFoulds

    JFoulds Power Member

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    Ask anyone with a degree in economics and they will explain in great detail why Bitcoin is doomed to fail, even if it isn't made illegal in most of the world before then.

    And please, nobody quote my post and be like 'ZOMG SHUTUP NOOBZ BITCOIN IS 4 LYFE!!!1!1!1!one!1!haxbbq!1!' because it's honestly not worth my bandwidth responding.

    However, if you genuinely think otherwise and have a solid argument worth posing, I'm gladly up for a debate!
     
  12. nappy-headed

    nappy-headed Newbie

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    Let me promise you. NO game... IM is the game !!!!! :|
     
  13. GrizzlyAdams

    GrizzlyAdams Regular Member

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    I'm really on the fence about the whole thing. I think the idea of peer to peer currency is fantastic. Taking control away from government is simpy amazing and should be pursused. I don't see how it will fail really. The only reason things are valuable is because people have faith in them. You can't eat gold, you can't hunt with gold. But people have faith in it and it is scare and so it has value. The same thing is true with bitcoin. All it needs is a large community (which it has) to continually support it and make it better (which they are) to keep it going and gaining value everyday (which it is).
     
  14. JFoulds

    JFoulds Power Member

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    Obviously, my lack of knowledge is demonstrated by stating a simple fact - widely accepted by anyone with a background in genuine economics.

    Hell, even ignoring these aspects, once/if Bitcoin ever becomes powerful enough as a currency to warrant attention from any serious corporations or companies with enough monetary power and wanted to destablise the economy, cluster mining and mass selling utilising any of the NUDT YH Cluster/TC3600 Blade/Cray XT5(/XE6)/whole host of others would cause panic buying and basically torpedo the market in the space of a few days.

    And likewise, thanks for the laugh my friend :)

    EDIT: Can't help but wonder why someone with such a strong economic background is requesting donations either...

    EDIT2: Also like to point out that I think the Bitcoin concept is a brilliant concept - but while it is theoretically excellent, with many, many benefits - this does not mean that it is destined to replace our currently severely flawed world currency system...
     
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    Last edited: Jun 11, 2011
  15. nappy-headed

    nappy-headed Newbie

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    Sir I respect your comments... and they are all very valid comments.

    spend some time researching this one ... please for your own good ... I promise you will become very interested.. No insult and my comments were sincere (passionate) the time I hva spent on this subject.

    Regards,

    ***EDIT: Can't help but wonder why someone with such a strong economic background is requesting donations either...


    donations are greatly appreciated
    1GbQCjofwhAAVCq57WMKkXZmbqhBf9ZvSH
     
    Last edited: Jun 11, 2011
  16. JFoulds

    JFoulds Power Member

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    I've already researched quite heavily into this subject, as I'm sure you have too.

    As your thread is about Bitcoin mining rather than starting a debate over the future of the currency I'll stop hijacking your thread and leave it here.

    Genuinely, I would love Bitcoin to succeed, as it would be a much better theoretical currency system than what we rely on at the moment, however, my personal views is that it will not work in practice when used longitudinally.

    Never the less, I actively encourage anyone with an interest in the currency to accept it and encourage it's trade, as this is one factor which will ensure it's stablisation as a genuine market economy.

    All the best,
    ~ JFoulds
     
  17. Mises

    Mises Junior Member

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    Bitcoin is an interesting concept and it will be interesting to see how it fairs. There are two big worries that any investor or user must account for in dealing with bitcoins at this point. The first being a potential speculative bubble that might be forming in the short term due to all of the media attention it is receiving. The second is potential long term deflation (since there is a cap on supply) that could potentially hurt it should it ever get to a large enough scale to be a competitive currency.
     
  18. GrizzlyAdams

    GrizzlyAdams Regular Member

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    I really doubt anyone actually believes bitcoin would take over global currency. Since there is a set limit on how many bitcoins can be created, which is the reason they have value. I think it was 270,000,000 that can be created? I'm not sure. But the great thing about this open source type of currency is that it will pave the way for other genius ideas which will eventually enable peer to peer currency to take over the world. Let us hope this becomes reality. So everyone should support that aspect of what this is accomplishing, even if they don't like what bitcoin does or is doing.
     
  19. bookmarc

    bookmarc Senior Member

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    so i downloaded bitcoin and have it running. currently it say 30 connections 43k blocks. now what?
     
  20. nappy-headed

    nappy-headed Newbie

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    start thinking about a bank to deposit your money into after you send a donation, that is if you have a mining setup config. :)

    I started this post to find other miners, however it seems new to most.