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On December 02 2013 04:08 obesechicken13 wrote:
As someone who doesn't understand bitcoins, I initially thought you meant that you only needed to write down one passphrase and your wallet was safe in case you lost your laptop.
Now it sounds like you need a passphrase for every coin you have.
na na, if u generate a wallet it will have a secret key or for some services a passphrase or both.
Bitcoin is still a little rough around the edges in terms of user friendliness but u know so was the internet and email not that long ago.
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On December 02 2013 04:11 Chrono000 wrote:Show nested quote +On December 02 2013 04:08 obesechicken13 wrote:
As someone who doesn't understand bitcoins, I initially thought you meant that you only needed to write down one passphrase and your wallet was safe in case you lost your laptop.
Now it sounds like you need a passphrase for every coin you have. na na, if u generate a wallet it will have a secret key or for some services a passphrase or both. Bitcoin is still a little rough around the edges in terms of user friendliness but u know so was the internet and email not that long ago.
So you have one secret key and a passphrase, and your wallet is safe even if you lose your laptop? I just want to make sure I understand this.
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Pandemona
Charlie Sheens House51484 Posts
Huge crash on bitcoins today?
$1300 a coin last time i saw today its $784 a coin
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On December 02 2013 04:50 Pandemona wrote:
Huge crash on bitcoins today?
$1300 a coin last time i saw today its $784 a coin
There was a Darknet Market crash/scam that saw people lose nearly 5400BTC, lots of confidence was shattered. It will bounce back though. The guys behind the scam aren't doing it very stealthily, and there is a huge reddit thread with a few people tracking every move of the stolen coins.
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I forgot I have money in a US bank account. Hope this crash brings the price low. Might buy 1k in bitcoins and see how it goes.
edit: Also the price on Mt.gox is a lot higher than on BTC-E.
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On December 02 2013 05:06 obesechicken13 wrote:
I forgot I have money in a US bank account. Hope this crash brings the price low. Might buy 1k in bitcoins and see how it goes.
It won't go much lower I don't think, I'd set a couple of buy-in prices are particular intervals. Or watch it very closely.
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So I started to mine with GUIminer, accessing to a pool. I have few questions:
1) Is it safe for my hardware? Right now I'm mining, but I don't see my pc slowing down or anything. The 'cpu affinity' boxes don't seem to change the speed at which I'm mining. I just don't wanna wake up and find my CPU fried.
2) Do I just have to wait? This site needs me to create a 'worker' that than connects to the mining server. Does anything forbid me to create more than one?
3) Let's say I earn 1 bitcoin. How do I cash out?
These are noob questions, I know but it's difficult to find anything 
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On December 02 2013 05:24 SoSexy wrote:So I started to mine with GUIminer, accessing to a pool. I have few questions: 1) Is it safe for my hardware? Right now I'm mining, but I don't see my pc slowing down or anything. The 'cpu affinity' boxes don't seem to change the speed at which I'm mining. I just don't wanna wake up and find my CPU fried. 2) Do I just have to wait? This site needs me to create a 'worker' that than connects to the mining server. Does anything forbid me to create more than one? 3) Let's say I earn 1 bitcoin. How do I cash out? These are noob questions, I know but it's difficult to find anything
1) it shouldnt directly damage your hardware, as long as it is proper cooled. however, it should shorten the lifespan of it, it still should pass the waranty but should definitly die earlyer than it would have without mining bitcoins(as long as you mine bitcoins when the pc would normally where idle/ shutdown). I can go into detail about that if needed.
2) I dont know
3), as far as I know, the power consumption caused by the miningprocess per bitcoin outweighs the value of 1 bitcoin. Not by a huge amount, but it does. efficent bitcoin-mining as far as I know is only possible via machines that are build for this purpose.
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On December 02 2013 05:24 SoSexy wrote:So I started to mine with GUIminer, accessing to a pool. I have few questions: 1) Is it safe for my hardware? Right now I'm mining, but I don't see my pc slowing down or anything. The 'cpu affinity' boxes don't seem to change the speed at which I'm mining. I just don't wanna wake up and find my CPU fried. 2) Do I just have to wait? This site needs me to create a 'worker' that than connects to the mining server. Does anything forbid me to create more than one? 3) Let's say I earn 1 bitcoin. How do I cash out? These are noob questions, I know but it's difficult to find anything
1) Not enough info but you shouldn't be using your CPU anyway
2) One worker per GPU
3) You won't earn a bitcoin. In fact, if you're running a desktop PC you're actually losing money by mining because your electricity costs are greater than the value of the coins you get. I recommend stopping.
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Seerejai, I'm not doing solo mining. I'm mining in a pool with 1k users, so I think I contribute suuuuuper slow but my pc doesn't seem overloaded.
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On December 02 2013 05:08 zachMEISTER wrote:Show nested quote +On December 02 2013 05:06 obesechicken13 wrote:
I forgot I have money in a US bank account. Hope this crash brings the price low. Might buy 1k in bitcoins and see how it goes. It won't go much lower I don't think, I'd set a couple of buy-in prices are particular intervals. Or watch it very closely.
arbitrage heaven lol
it's quite an exciting thing to have been part of what is essentially the same bubble for 3 times in a row. It honestly makes trading it and picking tops and bottoms much easier since the signals are exactly the same all three times
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On December 02 2013 05:54 SoSexy wrote:
Seerejai, I'm not doing solo mining. I'm mining in a pool with 1k users, so I think I contribute suuuuuper slow but my pc doesn't seem overloaded.
Pool doesn't matter at all. Whether you mine solo or in a pool you end up with the exact same amount of coins. You need to plug your hardware into a calculator.
I 100% guarantee you are losing money unless you have free electricity, in which case you're making profit but it's still only pennies a day and simply isn't worth it. You might get a single coin after a few years of mining.
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I don't think it's a good idea to discourage people from mining. I do think it's a good idea to inform people that if they're GPU mining they'll hardly see any BTC returns-- really, almost none-- and if they're CPU mining they probably won't see any, at all, so people jumping into things without doing their research get upset when they're holding on to like ten bucks in BTC after spending thousands on electricity costs.
Basically, mining isn't a good idea right now if you're looking to make money. If you've got other motivations, though, go for it!
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I'm having trouble wrapping my mind around the appeal of bitcoins. Often, lately, you'll hear that the price of bitcoins is skyrocketing, but who is buying them at such high prices? Seems like a scam to trade "real" money for bitcoins, especially with the hassle of attempting to barter with them for goods and services. If the goal of the people who got in early is to cash out and make a ton of "real" money.... doesn't that seem shady to anybody else?
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On December 02 2013 07:43 Serejai wrote:Show nested quote +On December 02 2013 05:54 SoSexy wrote:
Seerejai, I'm not doing solo mining. I'm mining in a pool with 1k users, so I think I contribute suuuuuper slow but my pc doesn't seem overloaded. Pool doesn't matter at all. Whether you mine solo or in a pool you end up with the exact same amount of coins. You need to plug your hardware into a calculator. I 100% guarantee you are losing money unless you have free electricity, in which case you're making profit but it's still only pennies a day and simply isn't worth it. You might get a single coin after a few years of mining.
Not true. Maybe as time goes to infinity you do, but realistically if you mine by yourself right now with your GPU you have a 99.9% chance of not getting a bitcoin for a year, while if you pool then you will get 0.0001 of a bitcoin once a week or so depending on what kind of setup you have for mining.
However yes, electricity costs right now outweigh the cost of mining with anything actually (assuming 6 cent / kWh), not just GPU's. People looked at how many coins they could get with a bit-coin miner, and it turned out to be a lot, but then many many people bought one, and now the supply of bitcoin miners has driven the price below average total costs, but above average variable costs, so most people are still running their miner's to make back some of the money spent on bitcoin miners, and some just because they don't exactly realize how much running their miner is costing them, and so they run it anyway.
Now to answer what so many people have been asking... Why would someone buy a bitcoin when it costs 1000? Think guys, it's a very simple concept. If you invest your money in Canada with a safe investment, you will likely get a 3-4% annual return. If you buy a bitcoin for 1000, and it goes to 1200 in a week, which is pretty much what happened in the last 3 days, you will get a return of 20% a week, or if you do an investment like this once a week for a year, you will gain a return of over 1,310,000% in a year. Very volatile prices is like high-stakes gambling, except assuming everyone is as skilled as you, you have a 50% chance of making money, and a 50% chance of losing, which unlike gambling, where the gambling favours the casino, therefore this is a legitimate area in where to invest your money. It's much like poker really, with the closest resemblance to penny stocks.
It does not matter what the price of the bitcoin is, that doesn't effect whether people will buy it or not, what matters is whether people will think it will go higher, or lower. That's what determines the price.
On December 01 2013 01:17 DannyJ wrote:
And I mocked one of my coworkers for spending 300 dollars on a miner last year...
Good thing you did, they were way too late to the party, haha.
On December 01 2013 08:44 Azide wrote:
It's hard to buy any damn coin. Sucks. But seems those who go through with it paid off.
Also regarding your $700k, make sure you talk to an accountant or someone about paying tax on it. Don't want the government to rape you. Technically it'll be considered income. Maybe capital gains? Definitely make sure you look into that.
I am aware, they are capital gains ): I am in the 39% tax bracket now (lol), and capital gains are taxed at 50%, so that is a 19.5% tax rate, although after tax exemptions, tax-free savings accounts, and other student benefits, it should be a 14-15% tax rate.
On December 02 2013 07:28 BrTarolg wrote:Show nested quote +On December 02 2013 05:08 zachMEISTER wrote:On December 02 2013 05:06 obesechicken13 wrote:
I forgot I have money in a US bank account. Hope this crash brings the price low. Might buy 1k in bitcoins and see how it goes. It won't go much lower I don't think, I'd set a couple of buy-in prices are particular intervals. Or watch it very closely. arbitrage heaven lol it's quite an exciting thing to have been part of what is essentially the same bubble for 3 times in a row. It honestly makes trading it and picking tops and bottoms much easier since the signals are exactly the same all three times
Very wrong. See, the first time it crashed people were all selling because they were all thinking, "this is it, end of the bitcoin", the second time it happened, it was still something oh shit oh shit, but now it's very unlikely the price will drop anywhere as much as before because once the price drops, most people will just say "oh, I'll buy because obviously it'll go back up", but because this will be such a wide-spread thought the way the bitcoin will react is going to be interesting. I am 99% sure though it will differ quite a lot from the last two crashes though. The interesting thing about bitcoin, is even now that the price is so high, quite a lot of folks with little education are investing in bitcoins opposed to investors (unlike in the stock market or any other investment tool), that the market behaves in a much more predictable pattern for someone that does their research to understand.
For the average person bitcoins used to be an exceptional investment, but I do think that time has run out, and now corporations and investment firms will begin to take over the market because they are seeing it's not as risky as initially thought. And once the market is taken over by people that do this for a living, the average joe will be losing money. Just like how it happened with the stock market.
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On December 02 2013 09:35 FiWiFaKi wrote:Show nested quote +On December 02 2013 07:28 BrTarolg wrote:
arbitrage heaven lol
it's quite an exciting thing to have been part of what is essentially the same bubble for 3 times in a row. It honestly makes trading it and picking tops and bottoms much easier since the signals are exactly the same all three times Very wrong. See, the first time it crashed people were all selling because they were all thinking, "this is it, end of the bitcoin", the second time it happened, it was still something oh shit oh shit, but now it's very unlikely the price will drop anywhere as much as before because once the price drops, most people will just say "oh, I'll buy because obviously it'll go back up", but because this will be such a wide-spread thought the way the bitcoin will react is going to be interesting. I am 99% sure though it will differ quite a lot from the last two crashes though. The interesting thing about bitcoin, is even now that the price is so high, quite a lot of folks with little education are investing in bitcoins opposed to investors (unlike in the stock market or any other investment tool), that the market behaves in a much more predictable pattern for someone that does their research to understand. For the average person bitcoins used to be an exceptional investment, but I do think that time has run out, and now corporations and investment firms will begin to take over the market because they are seeing it's not as risky as initially thought. And once the market is taken over by people that do this for a living, the average joe will be losing money. Just like how it happened with the stock market.
*shrug* could be. I trade professionally in futures, but i guess you could say it's kind of fun since this is the first actual "bubble" that i've had the opportunity to partake in
If you include the first mini bubble, all 3 (and now this 4th one) all have extremely similar technical movements. A few things like measuring vol over short time periods show almost the exact same kinds of moves as it has had all previous times
What's interesting perhaps is that bitcoin even though it provides the biggest opportunity is still not a market makers market as the volatility just craps anyone trying to take that edge out so hard. So i think there will be a ton of technical inefficiencies still that can be capitalised on until this situation reverses (for sure it's waay to far to the other extreme in more competitive markets)
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Bitcoins feel like one of those "too good to be true" things.
Usually things that are too good to be true, are just that.
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Pandemona
Charlie Sheens House51484 Posts
Would you say that Litecoins is not worth it now either? Due to the same reasons as Bitcoins? Litecoin mining is supposedly better for numerous reasons, but if like Bitcoins it is not outweighing the cost of Electricity then i would probably stop..lol
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Other problem I have (apart from the localbitcoins not really making much sense) is that it seems really easy to defraud someone. Pretty mcuh every other post on there is about someone getting ripped off.
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On December 02 2013 12:14 Butterednuts wrote:
Bitcoins feel like one of those "too good to be true" things.
Usually things that are too good to be true, are just that.
To me, they feel more like a 'startup' thing. Like when a company first goes to the stock market. After a while, it stabilizes and acts like a normal share. But in the beginning, some lucky people can make huge profits or losses.
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EPT
