Bitcoin Mining - My new job/hobby

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MrRogers
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Bitcoin Mining - My new job/hobby

Post by MrRogers »

Hey guys it's been a while since I've posted, just wanted to say what's up and to see a few familiar faces here. I have been getting my feet wet lately over the last 7 months in to Bitcoin and mining for bitcoins, as some of you may be aware of this new crypto/digital currency, it has grown faster and more popular than a lot of the worlds currencies that we have today. Recently Microsoft, DishNET, Newegg, and many many more retailers and places around the world have started to accept and adopt Bitcoin. Since it is the most sound, decentralized, secure type of currency available many major companies have taken interest in this because of these reasons. It is something that I now am proud to call myself a miner because that is where the fun begins.

I would like to say that I would be doing this site a disservice if I kept quiet about this, anyone that is is into BTC at all should get into mining for them, at least 2 TH/s on a pool would be a good start. It is still in it's infancy so the currency is volatile, but as more and more companies adopt this new currency it will skyrocket in value. As of right now the currency is worth $233.80USD per 1 bitcoin. If anyone is interested in to looking in to it please let me know, I would be glad to help you in setting up or helping you better understand everything if there is any questions that you might have. Keep in mind that mining is highly competitive and a lot of fun. It will in essence be like mining for gold. And you have control over what you mine for, you can sell it, trade it for goods or services, sell it for a profit, or hold on to it until the price goes through the roof and you are literally sitting on a winning lottery ticket.

To make things more understandable to a bitcoin newbie, I currently have 2 x Antminer S2 hashing at 1100 GH/s 1TH/s per second, each. Totaling roughly 2TH/s. I will be upgrading to the newer Antminer S4 units after I sell these, the S4 is twice as fast so I will be able to do 4TH/s. Right now the difficulty has remained the same so the only thing that affects me getting lower payouts per block is if more people join in mining, in which case the block when found is divided up between all the miners in the pool. On ebay, 1 Antminer S2 will run between $300-$500 depending on where you get it. It is very economically friendly if you have a setup with free electricity or if you pay less than $.11 cents or less per kWh.
I JTAGGED your mom.
I was told that there is no such thing as a free lunch, I then learned through personal experience that the best things in life ARE FREE - Me

WE ARE ANONYMOUS, EXPECT US.

All posts/topics that I post in are completely hypothetical in real life and should not be taken seriously.
MrRogers
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Post by MrRogers »

3:36 pm today
Bitcoin—which saw levels above $400 in November and topped out at $1,150 in 2013—briefly fell as low as $170 in Wednesday morning trading before edging back a few dollars. Bitcoin is notoriously volatile, but its swings are often linked to news about the technological ecosystem that supports it. This time, however, the source of the day's 22 percent drop is less obvious.

What do you think?

My response:


I know in the last week Bitcoin has been dropping in price, down now to $174.71 +/- 15%. I believe the two primary reasons behind this weeks drops are due to that of BitStamp being hacked for $5million worth of Bitcoins, as well as the short sale trading of Bitcoin.

Although the price has been steadily dropping, the actual value of bitcoin is going up. It is a paradox, I know. The reason is because as more and more places throughout the world adopt bitcoin as a method of payment, the world economy is getting use to the currency, slowly. As the price drops the value of bitcoin goes up because more people are selling/trading them. There is alot of well known big businesses that has recently adopted bitcoin as method of payment, Microsoft is a prime example, same thing with DishNET, Overstock.com, Newegg.com, etc.

I predict that bitcoin will not fall below $115.00, and that the actual fair market value of bitcoin will steady out at about $120-$160 as the bitcoin stabilizes. THe main reason why I believe that bitcoin is not a waste of time is that it is currently the worlds most viable, easy to use, and secure currency in the world. Now keep in mind that while some of the trading sites like Mt. Gox, and BitStamp being hacked is a reflection of those companies and their security protocol being that they are protecting the bitcoins, this is a flaw only in the design of the companies that watch over the bitcoins themselves and not a reflection of the integrity of the blockchain. Bitcoins are completely safe to keep in cold storage, or on a wallet on your computer, with the exception of malware or viruses on your PC, or a family member using the computer you have the wallet on. An offline paper wallet is as safe as you make it, and is ideal if you have more than 1 bitcoin. Besides that, there really isn't much else to say about it haha.
I JTAGGED your mom.
I was told that there is no such thing as a free lunch, I then learned through personal experience that the best things in life ARE FREE - Me

WE ARE ANONYMOUS, EXPECT US.

All posts/topics that I post in are completely hypothetical in real life and should not be taken seriously.
gone
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Post by gone »

Have you seen/read the following piece from the Washington Post?

Code: Select all

http://tinyurl.com/lfuowtf
Right now I see BTC valued @ $208.39. Assuming that remained stable, what would it take to be a profitable miner with electric rates @ 20¢/kWh
MrRogers
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Post by MrRogers »

gone wrote:Have you seen/read the following piece from the Washington Post?

Code: Select all

http://tinyurl.com/lfuowtf
Right now I see BTC valued @ $208.39. Assuming that remained stable, what would it take to be a profitable miner with electric rates @ 20¢/kWh

At that rate let's say for the purposes of enlightenment that you have 1 x 590w Antminer S5 running 24/7 on a pool, you will pay $43.00/monthly for it to run. For the sake of argument let's say that bitcoin price remains about the same, the blocks solved are not predictable so 10 blocks a day can be solved on a single pool, and your contribution to a pool with about 10 Petahashes/s, you can expect to earn about 0.0026btc per block. That value will fluctuate depending on the number of contributions to the pool but it is safe to assume you will get that if the PH/s stays around the same for a while.

You can expect to earn at least 0.50 btc per month on 1/Ths at 590w x $0.20 kWh, 0.50btc equals about $100.00 right now so at that rate you can expect to make about $57.00/monthly. Also $0.20 for kWh is kind of expensive.

That article is most likely backed by government or corporations that stand to lose if bitcoin become the main currency standard. A lot of powerful companies are backing bitcoin and it's future. The actual value of bitcoin to be comparable to that of gold since they are both scarce. The main factor behind bitcoin having value at all stems from the blockchain itself and the integrity with it. It is impossible to centralize or regulate and the term totally secure doesn't even hit the tip of the iceberg. There are many things going on about bitcoin in terms of speculation but the bottom line is that everyday the bitcoin concept grows and as that happens more people will use it making it highly valuable. The bitcoin itself is just one application to the protocol, as time passes I am certain there will be more developments surrounding it transforming the entire concept in to something we can't even comprehend right now. The facts are that bitcoin is being accepted by major companies as a form of payment, which should say a lot all on it's own. Also, the IRS is now making you claim if you have bitcoin on your taxes, so this currency has value even to our government, to them it is treated as property asset with monetary value. You can look at all the things said about bitcoin positive and negative and at the end of the day we know that with any new up and comer there are always those who stand to lose, in this case the world governments and world bank, no more middlemen, decentralization is something that humanity wants but companies don't because they can't make a profit that way. The USD has flaws, it can be duplicated to bubble the economy, forgery, wall st, saving it in a bank and the worst of all, it is controlled by government and world bank.. Bitcoin in itself has no flaws, you hear about places being hacked and bitcoins being stolen but that again has nothing to do with bitcoin integrity. I wish I wrote this better but hopefully you understand my wording and the points made.
I JTAGGED your mom.
I was told that there is no such thing as a free lunch, I then learned through personal experience that the best things in life ARE FREE - Me

WE ARE ANONYMOUS, EXPECT US.

All posts/topics that I post in are completely hypothetical in real life and should not be taken seriously.
gone
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Post by gone »

So about a year to recoup on the Antminer S5 of current valuation remain stable. What about the other crypto-currencies?
MrRogers
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Post by MrRogers »

gone wrote:So about a year to recoup on the Antminer S5 of current valuation remain stable. What about the other crypto-currencies?
That is correct, assuming that the price of bitcoin stays at what it is, however I don't see that being the case for an extended period of time. I firmly believe that since bitcoin in itself has not died off in value that the currency will slowly climb up in value with periodic spikes here and there. But that is based on my own personal opinion of the currency and where it is headed.

As far as other crypto-currencies, I just recently purchased a Zeus Lightning Scrypt miner (40-42 Mh/s). I will be focused on Litecoin, Dogecoin, Peercoin. Litecoin's price goes up when bitcoin goes up, and since the world is adapting to bitcoin, it is safe to assume that Litecoin will be the secondary currency as long as the bitcoin stays in the race Litecoin will also. It is amaxing how much the price of Litecoin has changed, a year ago Litecoin was pretty worthless for pennies to the dollar, but it also went all the way up to $48, then fell back down. Picture if you bought 200,000 for say $50, then wait a year, you would have made out with $9,600,000.00 if you sold them on coinbase, or BTC-e. It would be foolish to not mine what you can while people are still in the dark when it comes to mining.

Also, the great thing about mining scrypt based currencies is that is is very easy, in comparison to bitcoin which as each day passes the difficulty is getting harder, in turn it is harder to mine for them without the need to upgrade equipment, etc. Bitcoin is ASIC based so you can only use an ASIC miner to mine them, and for scrypt, such as Litecoin, Dogecoin, Peercoin you can only use scrypt miners. With the unit I am getting here in the next few days I will be in the top 1% of the mining pool, meaning I will be getting ALOT more than just about everyone else mining. Most people are using their graphics cards to mine scrypt (right now), so being at the front line with a beast machine to mine is a smart idea.

Now if you were to ask me what I believe would be the best currency to mine for, I'd say whatever one has value, is currently being accepted to a degree, and can ultimately be used by society. In this case it varies alot because we both know that bitcoin is at the front of the line as far as value and acceptance, however it is harder to mine than scrypt based currencies (right now). On the other hand, scrypt based currency is also alot less valuable in terms of wide scale acceptance.. But it has picked up alot more traction now that it is becoming more well known. So in essence, I would go with mining for both Litecoin & bitcoin. If money prohibits you doing both then I would suggest going with Litecoin to start and then use the Litecoins that you mine to purchase ASIC mining hardware. You can easily mine between 5-10 Litecoins a day with the right hardware.

It is definitely a smart move in the right direction to take an interest in this new technology, it can't be ignored and the world is starting to understand that the current economic state we are in is a result of a corrupted monetary system. This is taking us all on the right track to remedy that problem. Hopefully this helped you out a bit :)

If you are interested in purchasing hardware look on ebay first, and make sure you know what your looking for! :D
I JTAGGED your mom.
I was told that there is no such thing as a free lunch, I then learned through personal experience that the best things in life ARE FREE - Me

WE ARE ANONYMOUS, EXPECT US.

All posts/topics that I post in are completely hypothetical in real life and should not be taken seriously.
MrRogers
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Post by MrRogers »

Just to provide a little more info, you might also want to install Electrum on your computer if you want to store bitcoins (it's free & open source). Before installing, make sure you have Avast Premier (can be found easily on torrents), and also install Malwarebytes and set it to do a daily scan that way you can keep your bitcoins safe with peace of mind knowing that you have your computer fully protected against bs.

If that doesn't give you peace of mind, for say reasons like you have family members that you don't trust, you can keep your bitcoins in cold storage on a USB/flash drive or a paper wallet. Paper wallet is the absolute safest way of knowing that your bitcoins are offline, and in a safe place that only you can find them. There are programs out there for storing Litecoins, as well as the rest. Enjoy :)

I'm not sure where you check your bitcoin prices but you might want to try coindesk if you haven't already, if you check it from your computer it gives you the price every few seconds with a nice chart to show you the trend over the last month, etc. As well as the chart at the top which shows the daily value fluctuation. It is very useful.
I JTAGGED your mom.
I was told that there is no such thing as a free lunch, I then learned through personal experience that the best things in life ARE FREE - Me

WE ARE ANONYMOUS, EXPECT US.

All posts/topics that I post in are completely hypothetical in real life and should not be taken seriously.
gone
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Joined: Wed Jul 19, 2006 9:59 am

Post by gone »

Thanks for the very informative posts. Can ASIC-based miners be used for Litecoin and other others? Right now I'm seeing S2s & S3s that on eB that are within my budget
marthypaul
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Post by marthypaul »

bit coin is not anonymous.
It is traceable.
What you have to do it, is wash it.
It cost about 5% to wash bitcoins, and only then when paying, it is not traceable to the payer. It also depends who wash it for you that currency and by what method.

Investing in bitcoins??? --> it is better chance to win in lotto.
Mining ????? --> just another waisting time, u never gonna get rich with it, and return on investment ????doubtful at least.

Hey Mr Roger, you are again too late in this game, way way too late.

He he he, we see another Kolumb discovering America, 500 years after initial or fought to be initial...
Killswitch
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Post by Killswitch »

Dude, you must be Polish. Definitely from Krakow.
MrRogers
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Post by MrRogers »

gone wrote:Thanks for the very informative posts. Can ASIC-based miners be used for Litecoin and other others? Right now I'm seeing S2s & S3s that on eB that are within my budget
ASIC's can only be used for mining SHA-256, Scrypt is only for Scrypt.

Here is a good list of what ASIC's can mine for (SHA-256):

- bitcoin
- devcoin
- namecoin
- ASICcoin
- zetacoin
- fireflycoin
- TEKcoin
- continuumcoin
- freicoin
- opensourcescoin
- betacoin
- terracoin
- battlecoin
- emark
- teacoin
- joulecoin
- peercoin
- galaxycoin
I JTAGGED your mom.
I was told that there is no such thing as a free lunch, I then learned through personal experience that the best things in life ARE FREE - Me

WE ARE ANONYMOUS, EXPECT US.

All posts/topics that I post in are completely hypothetical in real life and should not be taken seriously.
MrRogers
Junior Member
Posts: 775
Joined: Mon Jan 19, 2009 9:25 pm
Location: 127.0.0.1>localhost

Post by MrRogers »

marthypaul wrote:bit coin is not anonymous.
It is traceable.
What you have to do it, is wash it.
It cost about 5% to wash bitcoins, and only then when paying, it is not traceable to the payer. It also depends who wash it for you that currency and by what method.

Investing in bitcoins??? --> it is better chance to win in lotto.
Mining ????? --> just another waisting time, u never gonna get rich with it, and return on investment ????doubtful at least.

Hey Mr Roger, you are again too late in this game, way way too late.

He he he, we see another Kolumb discovering America, 500 years after initial or fought to be initial...

Bitcoin is anonymous to a point, depending on how it is used and what precautions you take to making it untraceable back to your name. It is on the public ledger but the name of the person making the transaction is not known. If I mine for bitcoins then it can't be traced back to me since there is no identifiable way to track who is mining the coins.

As far as "washing" bitcoins, I am not aware of that... Nor have I ever had any need to wash them since I am mining them directly from the blocks, and not purchasing or being traded them, they are as anonymous as they will get when taken directly from the block...

Mining is a waste of time and money? Clearly you must have recently fell on your head. If it was not worthwhile or profitable then many people would not still be investing in them, and the hardware or capital to start a mining business. Maybe you can explain why some of the most successful companies are accepting what you call to be a waste of time as a method of payment, or maybe you can share with us all why the IRS makes individuals claim cryptocurrency on taxes?? If it had no value then it would be brushed off...

Please tell me how I am late?? I have been mining for over a year now, so not really late at all.... Bitcoin was introduced in 2010, I started mining mid 2013... 2 years later major companies start accepting bitcoins as payment. Maybe you and I have very differing opinions on what late is.. And FYI I was learning about bitcoin in 2011, I did not take the time of day to mine because it was just a concept at the time... Maybe your time would be better spent on working as a fortune teller since you seem to be so sure that bitcoin is worthless. :)
I JTAGGED your mom.
I was told that there is no such thing as a free lunch, I then learned through personal experience that the best things in life ARE FREE - Me

WE ARE ANONYMOUS, EXPECT US.

All posts/topics that I post in are completely hypothetical in real life and should not be taken seriously.
gone
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Joined: Wed Jul 19, 2006 9:59 am

Post by gone »

MrRogers wrote:ASIC's can only be used for mining SHA-256, Scrypt is only for Scrypt.

Here is a good list of what ASIC's can mine for (SHA-256):

- bitcoin
- devcoin
- namecoin
- ASICcoin
- zetacoin
- fireflycoin
- TEKcoin
- continuumcoin
- freicoin
- opensourcescoin
- betacoin
- terracoin
- battlecoin
- emark
- teacoin
- joulecoin
- peercoin
- galaxycoin
Thanks. BTW, I never heard of any of the above, aside from btc that is.
MrRogers
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Post by MrRogers »

gone wrote:Thanks. BTW, I never heard of any of the above, aside from btc that is.
Yeah there are a lot of different crypto currencies now.. It can be confusing to understand the bs ones from the ones with inherent worth. For the purposes of simplicity I would stick with bitcoin and litecoin.
I JTAGGED your mom.
I was told that there is no such thing as a free lunch, I then learned through personal experience that the best things in life ARE FREE - Me

WE ARE ANONYMOUS, EXPECT US.

All posts/topics that I post in are completely hypothetical in real life and should not be taken seriously.
MrRogers
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Joined: Mon Jan 19, 2009 9:25 pm
Location: 127.0.0.1>localhost

Post by MrRogers »

Bitcoin price has stabilized around $205.00, and slowly trending upward.
I JTAGGED your mom.
I was told that there is no such thing as a free lunch, I then learned through personal experience that the best things in life ARE FREE - Me

WE ARE ANONYMOUS, EXPECT US.

All posts/topics that I post in are completely hypothetical in real life and should not be taken seriously.
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