bitcoin mining (Do not offer items for sale in this thread)

Discussion in 'Blockchain & Cryptocurrency Mining' started by jurasofish, Jun 5, 2011.

  1. jurasofish

    jurasofish Member

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    what do you guys think of bitcoin mining? I've just set it up on my machine (dual5770) and am getting 180Mhash/s x 2. in a pool this has gotten me .5 bitcoin in about 1 day, which is equal to about ~$9usd.

    http://www.bitcoin.org/

    I thought this was the most appropriate section for this. mods feel free to move it if it's not
     
  2. Little Man

    Little Man Member

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    By the looks of things it looks like you cash these 'coins' in for real money:confused:


    Huh:confused:
     
  3. OP
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    jurasofish

    jurasofish Member

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    pretty much. I thought it was too good to be true but it seems legit so far
     
  4. EvilGenius

    EvilGenius Member

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    I don't get it.

    Is mining used for some useful computation?

    The computations done when mining are internal to Bitcoin and not related to any other distributed computing projects. They serve the purpose of securing the Bitcoin network, which is useful.

    Why don't we use calculations that are also useful for some other purpose?

    To provide security for the Bitcoin network, the calculations involved need to have some very specific features. These features are incompatible with leveraging the computation for other purposes.



    So it's basically using your computer to calculate ways of keeping the network secure, while generating free money.. Right. WTF?
     
  5. Embercide

    Embercide Member

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    I've just gotten into this also, using a 5850 i'm getting 270M hashes. I'm part of a pool but would be keen to start our own, if viable :thumbup:
     
    Last edited: Jun 6, 2011
  6. Little Man

    Little Man Member

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    Show me the money and maybe i'll hop on board.

    It can pay for this quarters power bill increase from folding :Paranoid:
     
    Last edited: Jun 5, 2011
  7. OP
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    jurasofish

    jurasofish Member

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    it's confusing at first, but trust me it will make sense if you look around for some basic guides
     
  8. Embercide

    Embercide Member

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    People have started using it to pay for goods/services already. And being completely anonymous and a limited number of bitcoins, the potential for future value is there :thumbup:
     
  9. Little Man

    Little Man Member

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    Is there anywhere that pays directly into paypal money?
     
  10. d1ng0d4n

    d1ng0d4n Member

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    Not that I've found yet. I go through an American service. Running at 1002 MHash/s :D
     
  11. Embercide

    Embercide Member

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  12. rush

    rush Member

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    Remember seeing something like this a while ago. The basic premise was along the lines of being used to test networks (they onsold their testing service)

    I never really got going with it, as my home PC was too feeble. But I read some people claiming that you could set up several virtual machines all doing the same thing and make some ok dollars.

    I'll be interested to see if this one can actually generate any money - and if so, does it offset the costs involved (electricity and data consumption etc)
     
  13. OP
    OP
    jurasofish

    jurasofish Member

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    that's a real problem actually, as paypal sees buying/selling bitcoins as currency exchange (which it is), so it doesn't allow it. you can, however, organise to sell bitcoins to people directly, but that requires a bit of trust :)
    http://www.bitcoin-otc.com/
     
  14. -Ace-

    -Ace- (Banned or Deleted)

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    Have you been able to actually convert any of this work into real money yet?
     
  15. Little Man

    Little Man Member

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    How exactly do they find out if you just call it a what ever and send as a gift?
     
  16. Little Man

    Little Man Member

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    Can someone sum it up for me and my exam-fried brain?

    > Do calculations
    > Get coins (How? To a username/account? Wheres the account?)
    > Go to VirWox or what ever and 'sell them' to some real person on this website
    > Person from said website deposits money into my paypal?
    ????


    If this does generate some money, we could create a pool (like a folding subteam?) to generate money for the folding farm fund run by RETARD.
     
  17. Amran

    Amran Member

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    edit - just playing a little devil's advocate here guys

    I guess the ideal scenario that people would want out of this is a distributed computing system that is self supporting in terms of running costs (namely power) and would eventually give a net financial gain. I'm going to go out on a limb here and guess that wouldn't be the case here.

    Having said that, every DC project is asking for our hardware, power and time to do work for them. In return we get something...around here that usualy equates to "a good feeling" about being part of our folding team or helping to cure disease. But I'm sure there are many, many people out there for whom that is not enough of a reason to do a DC project. I'm sure the number 1 thing holding most people back from doing more DC stuff is power costs. Maybe in time the balance can be found where our CPU/GPU cycles can actually be used to make money for us from organisations/companies who are unable to have a supercomputer or their own farms...until quantum computing gets up at least!

    Which begs the question...if a self supporting system existed, how many of us Folders would be willing to turn a quarterly financial loss (power bills) into a gain at the cost of abandoning our beloved folding for another DC project?!?!? *ducks* Hey!? :Paranoid: :confused:

    ...or just abandon Folding alltogether, setup a OCAU bitcoin team and donate all the proceeds to Stanford? It all comes down to how much money you get for your power/CPU cycles and what the cost of a WU is to Stanford to complete.
     
    Last edited: Jun 6, 2011
  18. Narcoticx2

    Narcoticx2 Member

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    From my reading, it only really works out as profitable if you
    1. get cheap or free power, or
    2. hold hope that it will increase in value.

    The difficulty of finding bitcoins increases over time, too, so something else to consider.

    Regardless, it's not a bad idea to get a few under your belt now so in 10 years time when 1BTC is worth $100, you're sitting on a couple thousand dollars.

    Unlikely scenario but of course entirely possible.
     
  19. magicrat80

    magicrat80 Member

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    I started out investigating Bitcoins around 2 weeks ago. Was using all my CPU's and a crappy 9800GT to mine and managed to get AU$7 from a site called Bitpiggy. At the end of the second week I decided to invest into a GPU for mining. Picked up a ATI 5830 on Friday afternoon. Spent almost all night setting it up and getting the overclocking levels stable (managed to get it good at 990/800, 80% fan, 66c, 287M/hashs). Let it run the course over the weekend and this morning did a transfer for Paypal and got a return of just over AU$20 for 1.66 BTC. in 2.5 days I had generated 1.9 BTC using the GPU and a couple of CPU's.

    It is possible to generate a profit, but it is getting a lot harder. It also depends on what Bitcoins are trading at. Since I started they've gone from US$7 ea to US$18 ea. And Yes, once the difficulty goes up (every week to 2 weeks), it gets harder to find coins. This week at $18 per BTC, mining my one GPU will net US$90. Once the difficulty rises (either today or tomorrow), that figure drops to US$69 if it's still $18 per BTC. And none of that includes electricity.
     
  20. OP
    OP
    jurasofish

    jurasofish Member

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    yep yep
    you download the program and it makes a wallet on your computer, which can only be accessed on your computer. it's stored on your hard drive, not online or anything (so you'd want to back it up). the program gives you an address so people can send you money through the p2p network. you give the pool you address so they can give you money.
    that's on way
    yep pretty much

    you could do that, but i think it's pretty difficult to set up a pool, but there are some clever on ocau :D
     

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