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    Bitcoin mining?

    Hi Guys,

    I had an interesting conversation here in Portland this weekend with a couple of tech entrepreneurs. They are both making a modest profit with bitcoin mining.

    Has anyone on the board here gotten into bitcoin mining? What about any of the other digital currencies.
    james.c.hendrickson@gmail.com
    202.468.6043

    #2
    Yes, we've had this topic on here before. No, it remains a bad idea.

    You're still up against Asian miners who run giant warehouses of crap PCs doing nothing but mining 24/7.

    You still have exchanges out there that are neither reputable nor established.

    You still have an industry that is rocked by previous scandals that, among other things, included the massive theft from Mt. Gox.

    You still have very few conventional vendors that actually accept bitcoins at this time.

    And the coins are still getting harder and harder to find.

    I mean if you want to try it as a hobby, by all means. There are tons of of them out there, by the way, though bitcoin tend to be the only one that is still "in demand" though it is getting harder and harder to mine them. The rest may be much easier, but they don't seem to command much at all in exchange for old school fiat currency.

    However, all that being said, I still stand firm in my belief that cryptocurrency-- though not neccessarily Bitcoin or any other specific incarnations right now-- is the wave of the future. It is precisely the kind of uniquely hashed and decentralized system of value store that can be bring on a similar form of Currency and Banking Renaissance akin to what the internet itself has done to bring us to our current Information Renaissance.

    The only thing that's stopping it, really, is a meaningful catalyst similar to the one that brought on the internet.... One can also argue that perhaps there is little benefit and too much "cost" in the loss of monetary control for any formal government to adopt it as well. However, if carefully done, this technology can still be used to back existing paper currency similar to the way gold and silver used to do it as well.

    I think it's a provocative thought anyway. For now, there is little incentive, except for those who regularly wade deep into the darknet that may have any real use for it, and as such, it remains fringe.

    Edit: Here's a video I found interesting to watch about it. Just remember that this was years ago, and some groups have since moved on to more sophisticated methods, but these are big dogs that would-be miners are up against.
    Last edited by Tabs; 11-22-2016, 05:07 PM.

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      #3
      In 2016, the Bitcoin Mining equation changed completely. To mine using ASIC Computers, it will cost you more than $600/machine and the profit-per-machine will be not more than 0.4 BTC/month. This is why mining pools have become so popular.

      Your $600 (or more) machine simply cannot mine as much as big pools, and for this reason you will begin to hear more about BTC investment in Mining Pools from this moment onward.

      Comment


        #4
        May be better off just buying bitcoin via a reputable exchange like coinbase.com. Im up around 100% this year on my bitcoin investments via coinbase. Just buy and hold. I would be surprised if bitcoin doesnt hit $1000 by the end of 2017.

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          #5
          As other people have said it's not really profitable mining BTC anymore. You can still mine other cryptocurrencies in hopes that they skyrocket like BTC did some day.

          Comment


            #6
            Originally posted by Spiffster View Post
            May be better off just buying bitcoin via a reputable exchange like coinbase.com. Im up around 100% this year on my bitcoin investments via coinbase. Just buy and hold. I would be surprised if bitcoin doesnt hit $1000 by the end of 2017.
            It already hit $1000 at the start of 2017.

            Comment


              #7
              Theres no money to be made anymore in mining. Each time a coin is mined the next one takes significantly longer to mine. Early on you could have made a killing...very little processing power...little time, etc etc. Now it takes a super computer and you're competing with everyone else in the world who mines.

              Imagine running a marathon...you're halfway through and someone else finishes. You along with everyone else has to go back to the starting line and try to get to the finish line again...first. Rinse and repeat...thats mining for bitcoins.

              Comment


                #8
                Unless you aren't a computer expert, I wouldn't do it. Today's miners are extremely professional, running farms in places like Iceland (for the cooling). You need to be very good, to make a profit.

                Comment


                  #9
                  If you're into Bitcoin and wan't want to gamble with the mining itself there are web services where you can trade in Bitcoin, just as in any other real or virtual currency.

                  Then you can buy and sell Bitcoin without actually getting in touch with the currency itself...

                  I know, it's not what you want, but at least, better than nothing! :-)
                  One source: en.bitcoin.it/wiki/Mining

                  ****
                  Edit: Excuse me! An old thread! I now noticed...
                  Last edited by angelicac; 06-08-2017, 01:47 PM.

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                    #10
                    I got a buddy dabbling in virtual money, been selling off his silver stash and getting into it. I don't know enough about it to get into it and I'm not looking to make large gains, at this time in life I'm looking for preservation rather than gains.
                    retired in 2009 at the age of 39 with less than 300K total net worth

                    Comment


                      #11
                      I've never mined it, but 3 years ago I had a coworker that did. He bought a fancy graphics card and did the math to make sure the mining would return enough coins to justify the electricity cost and that the card would pay itself off in a few months.

                      In the end, he lost money at the going rate (probably made it back because of the price jump since then). One morning he didn't hear his alarm clock because the computer was so loud. He missed his carpool. With his 1.5 hr commute (one way) and a gas guzzling truck, it ate all of the profits he'd gotten in the few months. He then started turning the computer off at night, but he missed quite a few days forgetting to turn it back on. Then, his roommates started complaining. He finally decided to scrap the project and sell back his graphics card. It was worth almost nothing because a new version came out while he was mining.

                      Us good coworkers laughed at his pain. Good thing he made plenty of money at work and it was just for fun.

                      No clue how things are nowadays or if he just chose a particularly loud card.
                      -Milly
                      Personal Finance Blogger, Mechanical Engineer, and Mother of 3 Toddlers
                      milly.savingadvice.com

                      Comment


                        #12
                        Only people making money from it now are in china. Those mines there are insane - no one can compete with their costs.

                        Some US power could be cheap enough - think it was Washington who had some large centres.

                        Also Nordic countries with large geo-thermic powered farms and cool temperatures had a decent output.

                        Comment


                          #13
                          Hello

                          Bitcoin mining is profitable but it totally depends on how much you are willing to spend. Each person asking himself this, will get a slightly different answer, since Bitcoin Mining profitability depends on many different factors.

                          Comment


                            #14
                            Bitcoin is a theoretical and practical breakthrough that makes it possible to decentralize services we previously weren't able to decentralize.

                            To elaborate: Bitcoin isn't just a currency but an elegant universal solution to the Byzantine Generals' Problem[1] in computing, one of the core challenges in reaching consensus in distributed systems. Until recently the problem was thought not to be solvable at all, much less on a global scale. Regardless of its currency aspects, many experts believe Bitcoin is brilliant, in that it technically makes possible what was previously thought to be impossible.

                            Comment


                              #15
                              Originally posted by CHH1023
                              I have tried it before but stopped after talking to a couple family members about this. My cousin is in the computer tech field and he said that you actually end up paying more money on electricity than the amount of Bitcoin you make in the end. Bitcoin is also very volatile and it could lose its value just like that.
                              I heard that notion, too. That you end up losing more than you gain in SOME countries. In China, however, electricity is apparently way cheaper than in the US. It's a legit business down there and they have these "bitcoin farms". Basically, a huge building that that rent that "farms" bitcoins on a daily basis. They make their living off of it.

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