Bitcoin Discussion Thread Part 2

If I had an extra 2000 dollars sitting around doing nothing... I might bite, but i don't so I won't

I'll continue to mine on my two 7970's on free electricity. It's going to start getting warm here in Texas soon so that won't last much longer anyways.

Butterfly labs - they have promised things for months and months, and months, it always gets pushed back. I'd love to get me a few jalapenos, but I don't feel like giving them an interest free loan for a year, at the same time anyone who's not on the first shipment of units will be screwed when it comes to making a rapid return on their investment.
 
it's been climbing for a month now, it may correct or it may continue
 
I wouldn't mind seeing it crash back to $3 so I could buy a crap ton of coins and then have it rise back to 15 or 20 dollars :)
 
jeez, I'd be happy with $13 again

I got cute with a bunch of mine and missed the train
 
With people starting to use this for on-line gambling and such, I'm don't see it going back down drastically any time soon.
 
Im confused as to why the value is going up when the ability to create them (currently) is getting easier.
 
If you're referring to the ASICS, they account for almost 1% of the miners currently and will for a little while longer. It's not getting easier, if anything it's just now coming profit wise as right before halving day.
 
USMCGrunt said:
Im confused as to why the value is going up when the ability to create them (currently) is getting easier.
Click to expand...

difficulty is static at this time, not sure what trend you are referring to

speed-small-lin-10k.png
 
USMCGrunt said:
Im confused as to why the value is going up when the ability to create them (currently) is getting easier.
Click to expand...

Value is going up because the mining reward halved from 50btc a block to 25btc. Mining was less profitable for a while, but since the value has nearly doubled to what it was, the block reward halving barely matters.
 
jojo69 said:
difficulty is static at this time, not sure what trend you are referring to
Click to expand...

What I mean is, wasn't it Oct. 2012 that the vale of bitcoins was like 2-3 dollars and now its up to 20. That's pretty damn huge...makes me wish I had invested a paycheck or two in bitcoins.
 
USMCGrunt said:
What I mean is, wasn't it Oct. 2012 that the vale of bitcoins was like 2-3 dollars and now its up to 20. That's pretty damn huge...makes me wish I had invested a paycheck or two in bitcoins.
Click to expand...

sorry, I misunderstood you, yes, investment in bitcoin has almost always been a very good move

remember, the block reward recently halved, so from a miner's perspective $12 = $24
 
I've been looking at an investment of sorts and these new asic boxes seem like it. The profit at the current bitcoin rate seems astronomical. Too good to be true. Is it?

My wife is almost on board, I could take out a loan and get that $30k box from butterfly labs. I'm just concerned that once I receive the thing it wouldn't be as profitable as it is now.

Worth the risk? Do you have to pay taxes on the money you make once you exchange it?(in the US).
 
from here difficulty will go up exponentially

There are too many variables, among the bitcoin price, but I think the ROI on ASIC rigs ordered at this late date will be slow going
 
Archer75 said:
I've been looking at an investment of sorts and these new asic boxes seem like it. The profit at the current bitcoin rate seems astronomical. Too good to be true. Is it?

My wife is almost on board, I could take out a loan and get that $30k box from butterfly labs. I'm just concerned that once I receive the thing it wouldn't be as profitable as it is now.
Click to expand...

Well, as soon as a handful of these get online, the difficulty is going to spike big time. Unless it was going to pay itself off in relatively short order at ~20% of what it would make right now, I'd consider it pretty risky.

Worth the risk? Do you have to pay taxes on the money you make once you exchange it?(in the US).
Click to expand...

Technically, you should, yes, since it's income. But then again, if you sell a used lawn mower to your neighbor, you're supposed to claim that as well. Once you start getting into dealing with this kind of money, though, it might be a good idea to pay taxes on that money since your large, regular deposits are definitely going to set off some red flags.
 
I say we pool in our bitcoins and order one. I'd happily throw some BTC to get one.
 
EdGaRRRRR said:
I say we pool in our bitcoins and order one. I'd happily throw some BTC to get one.
Click to expand...

A BFL Jalapeno is only like 6 BTC now - do you really need to pool BTCs for that?

I have 6 Single SCs on order, although I am not one of the early orders. I'll post details once I get them, but I am probably looking at April before I see my units.

As for a pools versus solo - I'd love to have that problem right now. I'd most likely stay in a pool because I suspect that without Stratum support or something similar on a solo mining operation, you are going to be wasting a lot of your hashing power - this is actually something I wanted to play with prior to getting my ASICs. By the time I get my units, I expect the difficulty to be high enough that the 360 GH/s I will have will be not produce much more than the 5 GH/s I have now. I hope to be wrong, though.
 
I only have 3 btc to work with. I cannot purchase more. Or mine anymore. I'm just trying to turn my 3 into more. Basically invest my 3 into something that turn them into more. Then I can invest in one of the asic's.
 
Paying taxes on money you get from mining... fuck that.

If you spent 30K and then somehow manage to make that 30K back in 10 or 12 months... *and* you had to pay taxes on it? Where the hell is the incentive? You just come out worse in the long run.

If you were cashing in large amounts of BTC - I hold mine in my Dwolla account and dispense as needed to my checking or savings. I'm not big time guy though - we are talking maybe 100/month I get from mining.

Taking out a loan -- especially for something HUGE like 30K on a venture that could dry up in a matter of days. Risky... very risky. You could make it big or you could be in the poor house for that loan.

If I did have the money or the balls to do something like that - the only way I'd pay for a rig like that to the tune of 30K is if flew out and took delivery personally and paid cash upon delivery.

the way BFL has been running their show - they would take your 30K and sit on it for months... all while you get to pay interest+principle on the loan and not have jack to show for it.
 
collegeboy69us said:
Paying taxes on money you get from mining... fuck that.

If you spent 30K and then somehow manage to make that 30K back in 10 or 12 months... *and* you had to pay taxes on it? Where the hell is the incentive? You just come out worse in the long run.

If you were cashing in large amounts of BTC - I hold mine in my Dwolla account and dispense as needed to my checking or savings. I'm not big time guy though - we are talking maybe 100/month I get from mining.

Taking out a loan -- especially for something HUGE like 30K on a venture that could dry up in a matter of days. Risky... very risky. You could make it big or you could be in the poor house for that loan.

If I did have the money or the balls to do something like that - the only way I'd pay for a rig like that to the tune of 30K is if flew out and took delivery personally and paid cash upon delivery.

the way BFL has been running their show - they would take your 30K and sit on it for months... all while you get to pay interest+principle on the loan and not have jack to show for it.
Click to expand...

Taxes are only due on the net profit of your business venture. So if you spent 30k to make 30k, there's not much to see....
 
David_Schroth said:
Taxes are only due on the net profit of your business venture. So if you spent 30k to make 30k, there's not much to see....
Click to expand...

Well, that would be the case if it was a legit business venture. This whole Bitcoin thing is a pretty gray area, so I think you would have a hard time justifying the initial $30k as a "business investment", if it were to come to that.
 
Omegas said:
I'm sorry but at 500w it wouldn't make that big of a difference if the other ran off 10w, it's not enough lost in power costs to justify shutting one down.
Click to expand...

There is an algorithm for that:

(bitcoins earned per day * current value of Bitcoin) – (cost of electricity per kilowatt hour * (watts of electricity consumed/1000)).

Comes out negative, your losing money, positive your making money.
 
Last edited:
T3rr0rByte13 said:
There is an algorithm for that:

(bitcoins earned per day * current value of Bitcoin) – (cost of electricity per kilowatt hour * (watts of electricity consumed/1000)).

Comes out negative, your losing money, positive your making money.
Click to expand...

Is the result that comes from that formula the actual dollar amount?
 
So uh, bitcoins are at $26 and terahash capable custom asics have entered the field. I think I'm getting the bug again lol.
 
Started to read/research about them. From what I've seen it looks like if you didn't get in on the ground floor by ordering early, you are gonna get screwed because by the time you get delivery of the asic difficulty will have increased to a point beyond profitability. I gotta find some free time do run the numbers right.
 
You must log in or register to reply here.
Back
Top