Decentralized Virtual Currency AKA Bitcoins

[Xanderyum]

I am not the end all on knowledge for this topic, I am going to paraphrase things into a method I understand, and I offer no financial advise for this. I am involved only as I have interest in economical things.

So, I'll try to give links to what I have learned and since it's my thread I'll throw around my $0.02 as well.

Long and short is this, Bitcoins are a form of currency that is created with hardware "hacking" security type algorithyms. The reason it has value, is because people like you and me give it value.  It's basically non hackable, it has a limit on the amount that will ever be available, it's decentralized.

Gizmodo http://www.gizmodo.co.uk/2013/04/what-is-bitcoin/

Wiki http://en.wikipedia.org/wiki/Bitcoin

Bitcoin Mining is using your hardware, CPU, and GFX cards to crunch these algorithyms. 

A side note, there are a few manufacturers of some new hardware called ASIC chips that is designed to only bitcoin mine, and do it very well.  However there is a lot being said negatively about these companies scamming and being a hoax.

https://bitcointalk.org/index.php?topic=114329.0

Here is the site that is one of the GOTO exchanges, and will give you an up to date on the value of the bitcoin

https://mtgox.com/

And here is a site that can help you in speculating the profitability of your mining rig.

http://www.bitcoinx.com/profit

Cpu's don't process fast enough to be worth it, and Nvidia Gfx cards are generally under powered, as the more Shader Processors (SP) you have the more you can crunch.  Nvidia uses other math and tech to do the same job as SP. ATI is the place to look for high SP count.

Here is a site that shows the crunching ability of a large amount of ATI cards, as well as rough estimates on cost and electricity used.

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

I know this little write up doesn't offer a ton of answers to the questions that this idea creates, and Google  and Bitcoin forums can take care of that.

My setup is a HD 6950 with the 6970 shaders unlocked, and for 200 watts i get about 400M/Hash

I'm also in negotiations for a couple of HD 5870's
which all said and done should put me at 1200-1100 M/Hash for under 600 watts.

Leave questions, and your opinions here and discuss as you feel the need to.

I keep no secrets and will share what I know.

As of this write up the Bitcoin was crashing. It was at $266 this morning and now down to $149.

I strongly recomend you not try to make this a retirement plan, but a hobby.


Cheers!
   Xander

P.S. The spelling and grammar police can piss off.

[Insideout]

Okay so what are you using for a wallet and such.

[Xanderyum]

Good question, I use guiminer for my HD 6950(70) -v -w256 -f1 for the flags (from what I remember)

I can't recall what wallet i have.  Currently the computer is down, as i took the GFX card apart to replace the thermal paste, and didn't realise i was out. But I'll look on the comp tonight If I remember.  I have a backup GTX 275 that i can throw in there. (which sucks a lot of juice for not much mining)

Cheers!
  Xander

P.S. I have the official bitcoin.org wallet, but haven't used it.  And i work in Slush's Pool, as the rewards are best for long term miners, and that's my plan.

[Neo]

This looks interesting. Will look into it a little when I find the time!

Thanks for sharing!

[Xanderyum]

Here is an interesting article on the bitcoin crash.
http://www.cnbc.com/id/100633793

I have read that mtgox.com says the crash was from hackers, as well as I read they claimed it was from a flood of new users. Either way there was a fire sale mentality that happened yesterday, that helped bring the bitcoin down from $266 to as low as $105. Today last I checked, the bitcoin hovered around $120 ish.

Cheers!
   Xander.

[NObama]

Sorry, but you'll never convince me that a decentralized virtual currency isn't safe from duping.  You do play UO, right?

[Paulonius]

Its an interesting topic and I have some questions still ruminating around. The one that I have fully formed is:

Is there a secondary market that allows you to make money betting bitcoin futures (straight or short)?

[NObama]

Its an interesting topic and I have some questions still ruminating around. The one that I have fully formed is:

Is there a secondary market that allows you to make money betting bitcoin futures (straight or short)?

If there is, that just reinforces my need to avoid this stuff.

Decentralized market options on a decentralized currency?  Do you answer Nigerian e-mails, too - or are you looking to manipulate the market?

Now THAT I could get behind...

[Xanderyum]

Howdy!

Yeah, currently I treat the Bitcoin as a stock.  This stock, you can use to buy things with directly, such as computer parts, and from what I have read, untraceable guns and illicit drugs too.  I'm mining, because, I might be ably to get a new GFX card, or a new cooling setup for my current GFX card.

Maybe I'll save them up for a little bit, and use them for a new trigger on my 1911..... Who knows what the range of function is for them.  Time will tell. 

Currently there isn't tech out that can dupe them, as everyone's mining software and wallets is aware of the amount of Bicoins in the world.

Someday maybe, but not for a long time...

Cheers!
   Xander

[Xanderyum]

A lil' update here.

Mining Litecoins, and then exchanging them for bitcoins, has more potential profit then mining straight bitcoins.
Crazy stuff!

I just ordered 2 HD 5850's made by ASUS from Ebay. wich will put around $10-11 dollars profit per 24 hours. Electricity is $0.06 Kwh where I live. so about a $1 a day for power. And the auction was a good deal, so I can atleast sell the GFX cards on craigslist  for a small profit, if in a month or so I get bored with the whole idea.

Cheers!
  Xander

[Insideout]

Okay so do you need a different wallet for litecoins lol

[Xanderyum]

Yeah, I haven't found a wallet that does both, that'd be nice though.....

[Endless Night]

Hey finalyl getting around to looking at this but probably missed the boat already.. give us an update on how it went for you

[Xanderyum]

I stopped mining bitcoins and switched to litecoins, was fun, should have stuck with it.  I stopped altogether now, but the Bitcoin is doing well for now.  Currently my passion and hobby is shooting and reloading.  So, On to new things.  I'm trying to sell a couple of my vid cards to buy my reloading equipment.  After all bitcoins won't help my family survive in a SHTF scenario, and really, prepping for that is one of my bigger agendas, and has been for awhile.......Zombies! Shoot!

[Tidus]

I know alot of people are using litecoin mining right now.  It is a smaller currency than Bitcoin, but is on the rise. I could never get my system to properly run guiminer even with my NVIDIA 7770.  Any advise on how i might be able to get that oging?