Bitcoin Discussion Thread Part 2

S

Stiletto

Supreme [H]ardness
Joined
Jul 13, 2008
Messages
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Since the last one got nuked thanks to a few jerks, let's try this again.

What is Bitcoin? How do I get started? Read this.

Useful links
Bitcoin Charts - Market data and conversion rates
Bitcoin Forums - Official forums, very active
Bitcoin.org - Official project site
BTC Guild - Popular mining pool (my primary)
Deepbit - Another popular mining pool (my backup)

Please do not use this thread to complain about the motivations behind Bitcoin mining, or to say how you think folding is somehow superior. We don't care. Thanks! :cool:
 
Shouldn't mtgox be back up? Maybe I'm not googling very well but I'm seeing 15gmt was 16 mins ago.
 
face palm @ self lol. Thanks

I'm at work and wont be able to transfer coins from my wallet until i get home tonight QQ. If for some crazy reason coins jump to $25 ill be pissed lol
 
I have a question, what is the processing power in bitcoin mining used for? Is it something where companies can buy supercomputing power and the end-user gets bitcoins?
 
LightningCrash said:
The power is used to create a "proof of work" for each bitcoin
https://en.bitcoin.it/wiki/Proof_of_work

Companies don't buy the CPU power... you may be thinking of the now-defunct CPUCoin.
Click to expand...

Ah, my confusion was what work the proof-of-work is for. It seems more like a random generation lottery system with a statistically predetermined payout over a time period according to that link. Thanks for the info.
 
Stiletto said:
Since the last one got nuked thanks to a few jerks, let's try this again.

What is Bitcoin? How do I get started? Read this.

Useful links
Bitcoin Charts - Market data and conversion rates
Bitcoin Forums - Official forums, very active
Bitcoin.org - Official project site
BTC Guild - Popular mining pool (my primary)
Deepbit - Another popular mining pool (my backup)

Please do not use this thread to complain about the motivations behind Bitcoin mining, or to say how you think folding is somehow superior. We don't care. Thanks! :cool:
Click to expand...

just an FYI, Deepbit charges a pretty hefty fee while BTC Guild charges no fee, your rewards show up quicker with Deepbit because for that 7% fee they basically loan you your rewards right away, while BTC Guild waits for the proof of work until they give you your rewards...
 
This thread needs the rule of:

No questioning the legitimacy of this thread being in the distributed computing subforum.

The 57% difficulty increase hurt a bit over last night, but at least the BTC remained strong against the USD.
 
wol-va-rine said:
just an FYI, Deepbit charges a pretty hefty fee while BTC Guild charges no fee, your rewards show up quicker with Deepbit because for that 7% fee they basically loan you your rewards right away, while BTC Guild waits for the proof of work until they give you your rewards...
Click to expand...

BTCGuilds donation fee for instant confirmations is only 2.5%. 7% is ridiculous!
 
charto.jpg
]

Code: 
Loading data file c:/SierraChart/data/mtgoxUSD.scid
Downloading historical data
Connection to mtgox open

I'm ready :)
 
MT.Gox has a huge problem. I just signed up. After you do, it brings you to the place were you add funds. Problem is once you log out you can't sign back in.

That's a good way to loose your funds.
 
traderj said:
MT.Gox has a huge problem. I just signed up. After you do, it brings you to the place were you add funds. Problem is once you log out you can't sign back in.

That's a good way to loose your funds.
Click to expand...

Signing in and out is working fine here.
 
traderj said:
MT.Gox has a huge problem. I just signed up. After you do, it brings you to the place were you add funds. Problem is once you log out you can't sign back in.

That's a good way to loose your funds.
Click to expand...

I'm unable to log into MtGox through Chrome for some reason (click login and the tab hangs for a few seconds without logging me in), however I am able to access my account just fine on Firefox 5.

Never had this issue before.
 
Taikero said:
I'm unable to log into MtGox through Chrome for some reason (click login and the tab hangs for a few seconds without logging me in), however I am able to access my account just fine on Firefox 5.

Never had this issue before.
Click to expand...

Like I said I just signed up today. I'm getting a "Invalid username or password, please try again" error. Their probably having database problems or something. I never received an email about my signing up. I'm just glad I didn't add any funds before I found this out.
 
A whole new definition of redoing your kitchen cabinets :D
img5590t.jpg


img5583a.jpg


img5587n.jpg


img5586x.jpg
 
Lorien said:
A whole new definition of redoing your kitchen cabinets :D
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Is this yours? Some more info would be great. What's that line pulling in? AC or outside air?

You have a PCI-e slot open. That's a no no for miners. haha
 
looks like a couple of 6990s. nice.

smart ducting of the hot air.
 
traderj said:
Is this yours? Some more info would be great. What's that line pulling in? AC or outside air?

You have a PCI-e slot open. That's a no no for miners. haha
Click to expand...
No, not mine. I'm not crazy enough to do something like that lol. Wish I could though.

jebo_4jc said:
looks like a couple of 6990s. nice.

smart ducting of the hot air.
Click to expand...

It's actually sucking cold air from the outside using a crazy 260CFM fan

41036543.jpg

img5579t.jpg


More pics here: http://forum.bitcoin.org/index.php?topic=7216.msg283831#msg283831
 
Lorien said:
It's actually sucking cold air from the outside using a crazy 260CFM fan
Click to expand...
no i was referring to the cardboard ducts that let out the hot air from the sides of the cards
 
Remember that a good portion of those people already had the hardware or already paid for it with their mining profits. Even if the value of coins drops to 0, that extra hardware will always have a value > 0. But for the people who just started mining after the peak and spent loads of money on mining rigs, yes, you are absolutely right to pity them.
 
That is one crazy setup. I just wish the market would surge. I'm going to a gun show tomorrow and some extra money would be great. :D
 
Lorien said:
Remember that a good portion of those people already had the hardware or already paid for it with their mining profits. Even if the value of coins drops to 0, that extra hardware will always have a value > 0. But for the people who just started mining after the peak and spent loads of money on mining rigs, yes, you are absolutely right to pity them.
Click to expand...

the pic in the other thread with the guy with 100+ 5770s in his garage was insane, and it had to have been recent, because there would be no reason to get that many 5770s unless the 5800 series cards were OOS, which wasn't the case early on in mining...

that guy had at least $10,000 invested in video cards alone...

:eek:
 
I wonder how many coins he would need to mine to break even at the current market rate to pay for all that stuff. Its an insane amount of hardware.
 
So I'm curious as to what pools you guys that are mining use and why? I decided to play around with this a bit using my current aging 4850 and I have been mining for bitcoin mining pool. I chose that because it's in the US, proportional payments and doesn't charge a fee. It seemed like a good pool to start with until I became more learned about everything. I'm thinking of maybe researching pools a bit more again, maybe a score based pool will be better. Anyways, where are you guys mining for?
 
I'm on BTCGuild. I chose it because there are no fees, and at the time I was getting started, they were one of the few pools that weren't being DDoSed.
 
Vediovus said:
I wonder how many coins he would need to mine to break even at the current market rate to pay for all that stuff. Its an insane amount of hardware.
Click to expand...

Lets say average market rate right now is 15$ for 1 BTC, I assumed a 20,000 cost for hardware. That would be 1333.33 BTC needed to break even. With 100 5770's though, I figured he would be getting at least 180 MHash/s (5770 can range from 160-240 Mhash/s according to Mining hardware comparison. So with 18,000 MHash/s at 15$ per BTC he would see a profit in the 4th month. According to this calculator I used. Keep in mind this is very generalized and I didn't factor in the difficulty rises. Just used the current difficulty.
 
If anyone is interested in this, I've been watching Mtgox's bitcoin accounts usng Blockexplorer, and they've dropped by 17,000 bitcoins since the ability to withdraw coins was put back about 10 hours ago. Of course, they still have at least 474,000 left. But as most people are only able to withdraw 60 bitcoins per day (or $1000, not both!), it looks like a lot of people have withdrawn as much as they could.
 
Samson4EiT said:
Lets say average market rate right now is 15$ for 1 BTC, I assumed a 20,000 cost for hardware. That would be 1333.33 BTC needed to break even. With 100 5770's though, I figured he would be getting at least 180 MHash/s (5770 can range from 160-240 Mhash/s according to Mining hardware comparison. So with 18,000 MHash/s at 15$ per BTC he would see a profit in the 4th month. According to this calculator I used. Keep in mind this is very generalized and I didn't factor in the difficulty rises. Just used the current difficulty.
Click to expand...

That calculator is VERY misleading. It makes the wrong assumption that difficulty is flat and does not change which is false. Difficulty changes (up or down) every 2016 blocks, the faster the network chews through those 2016 blocks the greater the increase in difficulty. The current average rate of difficulty increase has been 45%. Here is a much better calculator that lets you enter difficulty as a progressive value: http://striketeam.ath.cx/btccalc/btccalc.php

Notice how income drops off very dramatically after the first month if difficulty increases are sustained regardless of hashing power. On top of that you have to subtract energy consumption costs from those estimates.

meme said:
If anyone is interested in this, I've been watching Mtgox's bitcoin accounts usng Blockexplorer, and they've dropped by 17,000 bitcoins since the ability to withdraw coins was put back about 10 hours ago. Of course, they still have at least 474,000 left. But as most people are only able to withdraw 60 bitcoins per day (or $1000, not both!), it looks like a lot of people have withdrawn as much as they could.
Click to expand...
OK, you have shown you can type a link in block explorer. Is there a point you are trying to make?

P.S: In fact let me make a point for you. All those coins that have been withdrawn have had no effect on the value of bitcoins. People have been trading them and they've been holding around the same level that mtgox left them. Let me know if you need help reading the graph I'll gladly explain it to you.

chartd.jpg
 
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Samson4EiT said:
So I'm curious as to what pools you guys that are mining use and why? I decided to play around with this a bit using my current aging 4850 and I have been mining for bitcoin mining pool. I chose that because it's in the US, proportional payments and doesn't charge a fee. It seemed like a good pool to start with until I became more learned about everything. I'm thinking of maybe researching pools a bit more again, maybe a score based pool will be better. Anyways, where are you guys mining for?
Click to expand...

I switch between Slush's pool and BTCGuild. Going back to Bitparking or Namebit when Namecoins go up a bit in price.
 
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