Omnimaga
General Discussion => Other Discussions => Miscellaneous => Topic started by: Snake X on May 29, 2011, 10:28:30 pm
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That's right. I recently found this out on pc world on how to make money. You are appearantly able to make money by generating bitcoins. This is achieved via a bitcoin miner. There is an informational video here:
Also http://www.weusecoins.com/
So check it out! :D
Here is a list of sites that you can buy products.. with bitcoins!
https://en.bitcoin.it/wiki/Trade
Also be sure to check this out as well for questions: https://en.bitcoin.it/wiki/FAQ
edit: The main site is located at bitcoin.org
edit 2: just for fun it seems like you can buy a snes unit for 7.05 bitcoins over at JJgames :P
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This looks awesome I'll have to start mining now.
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First thing you want to note is when you download the application, you will see in the bottom right hand corner 'blocks'. You will want to wait until it gets to 127571 at the moment (subject to increase every 10 mins or so). Then you can start generating. However, you might want to think about mining with your GPU instead of your cpu. If you have a powerful gpu, this might be a good alternative.
https://en.bitcoin.it/wiki/Why_a_GPU_mines_faster_than_a_CPU
edit: http://www.newslobster.com/random/how-to-get-started-using-your-gpu-to-mine-for-bitcoins-on-windows
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How do I get this working for ubuntu(well mint but same thing for this purpose)?
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Bitcoin is a pyramid scheme. It is intended to create a very few, very wealthy people by ripping off everyone else who participates.
The way it works is that the total rate of bitcoins that can be produced over time is controlled so that the more people are mining, the fewer bitcoins they each will get. The handful of people who knew about it in 2009 were able to mine millions of coins using very little computational power. Once they had enough, they started advertising bitcoin on Slashdot and other places. Now that everyone knows about it, the mining difficulty has increased a millionfold, making coins rarer and thus more value (as long as enough people can be duped into buying and selling with them).
Humanity already has plenty of undeserving, parasitic elites on Wall Street, we don't need to create them on the internet too. The ethical thing to do is to avoid bitcoin transactions to prevent it from rising in value further.
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Now that you explain it that way it does seem much worse.
EDIT: I guess things like this always are too good to be true. It sounds like a nice idea though. How exactly does this create monetary value?
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The handful of people who knew about it in 2009 were able to mine millions of coins using very little computational power.
But wasn't it made in 2010?
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The handful of people who knew about it in 2009 were able to mine millions of coins using very little computational power.
But wasn't it made in 2010?
That's what they'd like us to think, I'm sure ;)
There is a graph at http://bitcoin.sipa.be/speed-ever.png that shows on a logarithmic scale, the amount of computation, and the difficulty (which is periodically adjusted to the amount of computation). Mining was super easy all throughout 2009; notice that the difficulty is now almost a million times higher.
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According to that it started in '09. I wonder if something like this could ever work.
Could someone please explain why this makes the coins of monetary value?
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x.x so I will probably be waiting how long you think for 1 bitcoin?
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A very long time
EDIT: I wondered what happened when it hit 0 difficulty?
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Ugh, I've heard about these before. I have no plans getting my hands dirty with them, and I hope that you do the same... for your own good, too.
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Could someone please explain why this makes the coins of monetary value?
The way any currency has value is that you can buy things with it. The value is basically proportional to the amount of trade that takes place with the currency, divided by the amount of the currency in existence.
Bitcoin has a tightly controlled rate of creation (more people getting into it does not mean more bitcoins will be created), so the more people involved, the more valuable it gets. Once that gets as high as it's going to get, the 2009ers will cash out, making themselves rich, but causing a large drop in bitcoin value (due to the millions of "new" bitcoins entering circulation), which will very quickly turn into an outright crash (nobody wants to be stuck holding a currency that's rapidly dropping in value, so people will try to get out while they still can, causing a positive-feedback loop) - so everyone else is stuck holding now-worthless imaginary money.
A very long time
EDIT: I wondered what happened when it hit 0 difficulty?
Actually that wasn't the difficulty that hit 0 briefly, only the amount of mining.
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I've heard of this before, but never gotten involved, and now Goplat's given me excellent reason not to.
It seems that mining would be fair as long as the difficulty remains constant, but that remains ignorant of increasing computing power.
How badly could things go if the system was open-ended, that is, if there was no fixed limit on the amount of coins in the system? (It's probably a bad idea. If so, please state this outright and say why. ;)) This would make it necessary to mine all the time and consistently upgrade one's hardware to protect oneself from the ongoing hyperinflation, but at least it prevents early adopters from creating a vast store of easy money...
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YOu could just increase the difficulty with how computing power increases instead of by people. SO liek every 18 months it doubles
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The way any currency has value is that you can buy things with it. The value is basically proportional to the amount of trade that takes place with the currency, divided by the amount of the currency in existence.
Bitcoin has a tightly controlled rate of creation (more people getting into it does not mean more bitcoins will be created), so the more people involved, the more valuable it gets. Once that gets as high as it's going to get, the 2009ers will cash out, making themselves rich, but causing a large drop in bitcoin value (due to the millions of "new" bitcoins entering circulation), which will very quickly turn into an outright crash (nobody wants to be stuck holding a currency that's rapidly dropping in value, so people will try to get out while they still can, causing a positive-feedback loop) - so everyone else is stuck holding now-worthless imaginary money.
I just thought os something.. You said it'd be worthless once millions of coins are generated. You also forgot what backs up the value in the bitcoin. As new coins are generated, the difficulty increases. This is what will keep the vue once they are starting to near the 21 million coins, the work and power it takes to generate them in the firs place.
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Could someone please explain why this makes the coins of monetary value?
Think about it: Why are U.S. dollars of monetary value? Because the people who you pay them to are gonna use them. That's all that's behind modern currency -- all you really "receive" is a promise that you'll be able to use it in the future.
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So ow does inflation happen. I don't understand economics at all currently
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Inflation happens when the symbolic money cannot be physically backed up. The US treasury maintains an enormous sum of gold used to back up the dollar. When the symbolic paper dollar is produced in mass quantities each dollar then represents a smaller portion of that gold, therefore decreasing its value.
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So it is more than just belief that soemone will give you something for that dollar that makes it worth something
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So it is more than just belief that soemone will give you something for that dollar that makes it worth something
If there's something to back it up, like gold, that definitely makes it worth more because you know that even if you can't get anything else (thanks to inflation), you can always get gold, which can never depreciate much in real value since there's a limited amount of it in the world.
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yeah. Actually the thing that backs it up is confidence. By the way, how would the 2009'ers cashing out lead to a spiral of doom?
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Inflation happens when the symbolic money cannot be physically backed up. The US treasury maintains an enormous sum of gold used to back up the dollar. When the symbolic paper dollar is produced in mass quantities each dollar then represents a smaller portion of that gold, therefore decreasing its value.
But Nixon took us off the gold standard. The whole point of that was so we wouldn't have to rely on having an equivalent amount of gold.
yeah. Actually the thing that backs it up is confidence. By the way, how would the 2009'ers cashing out lead to a spiral of doom?
Remember that value is based on the amount of trade using that currency divided by the amount of that currency in circulation. By people caching in and therefore adding their bitcoins back into circulation, this is now increasing the amount of currency, but not increasing the amount of trade. Basically, you're now dividing by a much larger number, so the value will plummet.
Once the bitcoin's value has decreased, prices will skyrocket, but people won't have enough bitcoins to afford any of it. It's basically the same thing that happened in the Great Depression, and also similar to what's happening now in this recession. Value of currency decreases, so prices increase.
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We should use ByteCoins since we measure things in bytes still.
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We should use ByteCoins since we measure things in bytes still.
I think they were just getting a generic computer term to use
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We should use ByteCoins since we measure things in bytes still.
I think they were just getting a generic computer term to use
Trading hats is more addictive though.
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They are trying to make money not addictions
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By people caching in and therefore adding their bitcoins back into circulation, this is now increasing the amount of currency, but not increasing the amount of trade.
Ah but arn't you trading though to some company that has money that will give you money for your coins?
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I kinda read through this, and while I may not know everything behind it, it looks unfair, it seems to be a waste of time and computational power, and I think it would be more beneficial to actually work for real money.
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its an easy way for a few people to get really rich
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its an easy way for a few people to get really rich
All of the people getting really rich should probably get off their computer and do actual work, instead of making money through hocus-pocus. Plus, anyone who joins in now will most likely make nothing, and therefore it would be a waste of time to jump in at the moment, if at all.
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It sucks for people now but it was a smart if very unfair idea to do this
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Yeah what i'm thinking about doing right now is just straight up buying bitcoins since they're like going up 50 cents a day :o
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Yeah what i'm thinking about doing right now is just straight up buying bitcoins since they're like going up 50 cents a day :o
Following the greater fool theory (http://en.wikipedia.org/wiki/Greater_fool_theory)? Dangerous. This bubble will pop, we just don't know when.
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It actually seems like a good idea currently just you'd have to be able to guess when the 2009's would cash out so you could do it slightly before them to maximize profits
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I kinda read through this, and while I may not know everything behind it, it looks unfair, it seems to be a waste of time and computational power, and I think it would be more beneficial to actually work for real money.
or run folding at home on their computer to put their CPU cycles to good use.
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Wooooooooo I'm a new bitcoin user!
1Gtug5i8g77A8p2udMwoybYSLm5Jcm7heY
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Yeah what i'm thinking about doing right now is just straight up buying bitcoins since they're like going up 50 cents a day :o
Following the greater fool theory (http://en.wikipedia.org/wiki/Greater_fool_theory)? Dangerous. This bubble will pop, we just don't know when.
Indeed. I don't know much on the matter of how currency works itself, but from stock market knowledge, you never, never, ever buy when it's going up, only when it's stagnant after a big fall (catch the dead cat bounce, pull out, get back in and generally hold it in there)
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I would ignore this. Yes, if you're really really lucky, you may come upon quite a few bitcoins, but... what else? You have an extremely low chance of getting anything.
MD Bonus Match 5: Match 5 Odds = 1:575,757
Killed by lightning: 1:1,603,250
Dying from venomous bite/sting: 1:1,159,364
Difficulty in getting a bitcoin: ~1:1,000,000
As you can see, they are VERY close to each other. You're playing the lottery here. Just because it's digital doesn't mean the odds aren't against you.
(This analogy/comparison is probably wrong... but who cares? :P)
What I would do is learn a programming language that a popular platform uses (if you don't know it already), and put it to use! :) Android Market is a great place to start! Create your own app, make it awesome, and sell it!
What I'm going to attempt this summer is to make a Facebook app. They have this new credit system (which is 100% guaranteed, otherwise major app publishers wouldn't be using it) that players and users can use to buy things. If I had a game that needed upgrades, people will buy such upgrades. 1 FB credit = $0.07. Sure, it's little, but if you do a good job, you're going to get quite a bit.
Basically, my point is that there's no such thing as a free lunch. Even in the virtual world. ;)
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<Necropost warning>
Yes, I'm waaay behind the latest fads here. Sorry about that. Wish I had found this thread sooner.
I independently discovered bitcoin a few months back, found the idea fascinating, and started experimenting just for fun. It would certainly be nice to be able to send money digitally without having to have stuff like credit cards, etc., which has been a difficulty in my position.
The previous posters raise some good points, I think, but here's my take on things. I'm also kind of disappointed that I joined in too late for things like mining to be as profitable as the really early adopters. However, it's still not too late to be an “early adopter”. Of course, you won't be as well off as people before you, but if this takes off, you'll have a head start over those joining in after you.
I certainly don't advise anyone to invest more than you're willing to lose into it. I personally won't be putting any physical money into this for now (other than what I pay indirectly in electricity usage, etc., which I'd probably just end up using on something else if I weren't doing this, anyway :P). So if Bitcoin takes on, I'll have a small head start, and if not, well, at least it was a fun experiment. :)
There are still some ways to accumulate a small amount of Bitcoins over time, though, if you don't mind spending some time and effort on it. You can still do pooled mining (p2pool looks the most inviting to me at the moment)—don't expect huge payouts, but you can gain some especially if you happen to have a decent graphics card. There are also sites like dailybitcoins (http://dailybitcoins.org/?ref=1GafkYLViGL99Mo5L5iuo7rKmpMUransrH) and Bitcoin Faucet (https://freebitcoins.appspot.com/) and others. You just have to look around.
Finally, there are a number of competing experimental currencies—LiteCoins, NameCoins, and more. These are younger than Bitcoin and claim to fix some preceived disadvantages, so you can be an even early adopter of these right now. Of course, they may fail, but they may overtake BitCoin eventually. It's a bit of a gamble, sort of like investing, I guess.
Anyway, if anyone here is still playing around with these cryptocurrencies, hopefully the above info may be helpful.
(By the way, just in case anyone is feeling generous and wants to donate to me: 12tLJDcw2TmgcHfyVWsJyYnYajjkgVxdxW ;D)
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TO me this is a bit like Google ads and stuff. Unless you get millions of hits per day, you're barely gonna get anything. Eg, on my Reverbnation account, I have made $0.05 since January 1st in ad revenues.
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Double necro
Bitcoins shouldn't be looked at as a method to get rich. It's supposed to be a currency first and foremost, and now 2 years since this thread has started it's crashed several times but recovered every time. The reason why they're harder and harder to mine (now impossible without several GPU's or an ASIC) is to control the flow of new currency thus making it a deflationary store of value (kind of like gold) backed by its own scarcity as opposed to an inflationary one backed by the word of a government (like the US dollar).
Bitcoin may eventually go to 0 but I doubt it will be because of panic selling. A lot of people have faith in the currency, as an open source codec flaws have been looked for and (almost) none found. In April this year they crashed from $266 down close to $50 but have been sitting comfortably around $120 for the past few weeks. If Bitcoin ever takes off, it would *not* be a smart idea to sell; you'd be losing money as the currency would begin experiencing massive growth. Right now the largest single holder of bitcoins are the Winklevoss twins, yet they only hold 1% of the total Bitcoin economy.
Thoughts, now we've had a couple years observation on the topic?
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Namecheap and the Humble Bundle both support Bitcoins now, it's starting to be pretty interesting.
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Bitcoins have been going crazy these days.
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I would ignore this. Yes, if you're really really lucky, you may come upon quite a few bitcoins, but... what else? You have an extremely low chance of getting anything.
I like this quote, from 2011, now (nov. 2013)... A few bitcoins is quite good x)
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Yeah it seems so. Now, actually making money out of it would be kinda hard. :/
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Well, with that much fluctuation you can make bits of money in only a matter of hours :P
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I was talking about mining. :P
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Oh, yeah, with mining you hold the truth - unless you want to get yourself some bitcoin farm... :P
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/me buys a ton of ASICS for mining
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Ok, what's up with the bitcoins today, they are like on a rollercoaster ride :P
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I heard that Bitcointalk was down earlier and some people feared that Bitcoin was on the verge of vanishing off the face of the earth, so it was total panic among a few people.
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Yeah, they went from 1200 down to 850, back up to 1010 and now they are at 980
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It would really suck if the owners of Bitcoin decided to just pull the plug with everyone's money. We never know who's hiding behind those keyboards. >.<
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Bitcoins are de-centralized, there is no owner ;)
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It's decentralized, so it's kinda hard to pull the plug on Bitcoin. The only way it could shut down is if every single user stopped using it.
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Oh ok, I thought that somebody just ran that as some sort of company, so I feared that if at one point, enough people bought bitcoins to invest for potential profit later, that they could just decide to disappear with everyone's money before they get to resell their bitcoins.
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Well, the decentrilization is actually one of the things that make the bitcoins so awesome IMO because there is no gouverment or anything behind it regulating it, its value is only based on what people think it is worth.
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I'm still a little confused about the whole bitcoin stuff :P How can it be regulated when anybody can edit the code and use it. What if a whole lot of people decided to use a modification that allows for more than the 21 million currently set as limit? Or am I completely misunderstanding it?
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Element, you could do that but you would be using a different currency, not bitcoin. Bitcoin has an agreed-upon protocol, and the chain of transactions always trace back to valid origins of the money.
You can't fake more money without spoofing the ENTIRE chain of transactions. Plus, to do so would require the same approach as mining, as far as getting resources to work with, and would take FAR more computing power. It earns more money to mine than to cheat, and the difficulty vs payoff scale is aimed at keeping it that way.
I would say bitcoin is more useful as a long term investment than a short term investment, given its growth pattern. Short term behavior is volatile.
Really, though, there are better investments.
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Basically, to change a fundamental part of the Bitcoin protocol, you'd need most people to switch to it. It requires more than half the entire hashing (computing) power of the entire Bitcoin network to invalidate the current block chain and replace it with something that works a bit differently. The larger the Bitcoin network grows and the more mining that's done, the less practical this becomes. Even right now, doing that would require an insanely huge amount of resources. Otherwise, the majority of clients run by everyone will simply reject and ignore foreign blocks.
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Oh right, so I also assume that this would make hacking bitcoin pretty much impossible (fortunately)?
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Yes, the more people mine bitcoins, the more secure it gets :)
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If you just want a different bitcoin-like system, though, without replacing bitcoin, you just have to start a new block chain. That process is only necessary for major bitcoin-specific changes.
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http://feedas.com/uk-man-tries-to-retrieve-7-5-million-in-bitcoins-from-dump/
O.O
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Oh, that was in the UK? I thought that was in the US, read about it a few days ago :P
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O.O I'd be so pissed of if it happened to me.
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I guess you became crazy :P * WWWHHHHHYYYYYYY I'VE DONE THAT *
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is this the crash? They went below 600 and are right now at like 730, but stilll..... :P
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The prices are starting to go back up(which my wallet is really appreciating)
Do any of you do altcoins? I mine anoncoin with my GPU/CPU when I'm not playing games on my desktop(currently get about 470-520kH/s). I have earned about 4.1 coins with it so far though fees will take .3 of those off.
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Wow anoncoin are just $6 each at the moment. If these get as popular as bitcoin it might be a good idea to invest now!
http://coinplorer.com/ANC
On the other hand. It peaked 4 december at $12, so it's quite unstable. You need to sell fast if you think the time is right!
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if we just knew in adnaved which coins will turn out good :P
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(http://garrigusrealestate.net/wp-content/uploads/2013/01/2013-real-estate-crystal-ball.jpg)
Stock photo of someone with a crystal ball. Looks more like a soapbubble. Maybe it is symbolic and he is analyzing the global economy.
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I'm mining Litecoin and holding onto some Peercoins. PPC seems like it has a lot of promise—it has some interesting concepts that are much different from Bitcoin's. Instead of having to mine it, you can gain extra by holding on to coins for a long time. It's like keeping them in a bank and accumulating interest.
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Wow anoncoin are just $6 each at the moment. If these get as popular as bitcoin it might be a good idea to invest now!
http://coinplorer.com/ANC
On the other hand. It peaked 4 december at $12, so it's quite unstable. You need to sell fast if you think the time is right!
Page doesn't load. Good idea to invest indeed. ::)
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Value went up from 6 to 7,5USD/ANC in less than a day!
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Yeah, but I don't see the point in investing into something when I can't even access to the website >.<
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Anoncoin was $16 a while back. The price fluctuates a lot along with bitcoin(buy some bitcoins and buy anoncoin with it when it goes down and you could make some money)
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Problem: Who will buy your anoncoin when they are expensive?
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Anyone hoping the value increses even further, like bitcoins. Which will clearly (hopefully) not happen again.
I'm just leaving this here: http://www.pidjin.net/2013/12/09/bitcoined/
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lol, that was actually funny :P
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The coffee shop in front of my school accepts bitcoin payments.
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Doge coin is a good alt coin to try with. There is no exchange that carries it but you can trade it on there forum. I have made $58 and 0.02BTC in ~36 hours
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Wait, doge coin?
That meme is everywhere D:
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It is a great coin. has random block reward and is valued at a wide range, but I usually get about $11 per 10k
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Interesting how much Bitcoin's come to be accepted since the OP... Now I wish I'd gotten into that sooner :P
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Who doesn't? :) You just have to think of it in terms of how well off you'll be compared to everyone who joins the party later than you. :P
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Seems like Mt Gox got hacked
http://www.smh.com.au/business/world-business/bitcoin-giant-mt-gox-files-for-bankruptcy-after-possible-us500m-lost-to-hacking-20140301-33s39.html
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Mt Gox messed up a lot and is pretty much gone now.
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To be honest, this is a bit why I didn't trust those digital currencies. I always worried that either my money would disappear somewhere or that bitcoin value would drop right after I acquired some.
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On the other hand, if we'd invested in Bitcoins when Snake X made the original post we'd be rich >.>
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On the other hand, if we'd invested in Bitcoins when Snake X made the original post we'd be rich >.>
Yeah, but if we set the correct crosses on the lottery card we'd be rich, too ;)
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Indeed. Sadly Bitcoin was a pretty obscure thing back then and some of us thought it was a scam like every other "make money with no effort" or "get Microsoft Points for free!" things on the Internet. By the time we realized what it is, it was too late.
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I wanted to get a few for fun but didn't have funds to play with then :(