Anyone ever mine for bit coins ??? - AVS Forum | Home Theater Discussions And Reviews
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post #1 of 27 Old 05-24-2013, 04:28 PM - Thread Starter
 
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Friend of mine keeps talking about it. Seems silly to me but honestly I don't know much about it.

Aware me please.
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post #2 of 27 Old 05-24-2013, 05:17 PM
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Bitcoins....where to start. I've mined for them about 2yrs ago when the difficulty rate was low and I could get 2 coins a day but now unless your getting/have an ASIC miner GPU's and FPGA's really ain't worth it. Plus with the US government getting involved its getting harder to convert to actual currency. Yes its kinda silly to have a computer (or multiply) with 4 or 5 AMD video cards blowing breakers or people getting busted because the police think they have a marijuana growing operation when all the power is being used to mine.

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post #3 of 27 Old 05-24-2013, 05:38 PM
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The Gold rush, when it happened, was even more frenzied, except they used pickaxes instead of computers. The concept and the scarcity was/is the same. The difference is that the "gubmint" is a lot more powerful now vs then. In the last two or three decades we essentially gave them that power by using electronic money more than physical money. Now, they can track literally any financial transaction.

Gold or bitcoins both attempt to remove the powers that be from meddling with your "money" or more importantly, "store of wealth". Anytime the govt realizes that it may get sidelined from that purpose, it will go after that medium with a vengeance.

Just as Gordon Gecko once said, "Greed....is good", what he didn't say/imply was that the govt is greedier than everybody else.
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post #4 of 27 Old 05-24-2013, 05:49 PM - Thread Starter
 
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So what's a decent rig going to produce in actual money value ?
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post #5 of 27 Old 05-24-2013, 05:56 PM
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Quote:
Originally Posted by Mfusick View Post

So what's a decent rig going to produce in actual money value ?

Mining with one's personal rig, no matter how powerful it may be, is not worth it anymore. CPU mining has been long dead. GPU mining has also died since. Don't bother unless you are looking to buy an ASIC.
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post #6 of 27 Old 05-24-2013, 06:07 PM
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You've already missed the boat, period.

If you don't already, at this exact moment, have an ASIC miner purchased, or pre-ordered from either Avalon or Butterfly Labs, you don't have any chance of making any kind of money at all from Bitcoins. You might want to wait for the next huge Bitcoin crash and then buy a bunch of them and wait for them to increase in value again.

I pre-ordered a Jalapeno Bitcoin Miner from Butterfly Labs almost a year ago, and I finally received it in the mail a few days ago. Its hashing at about 5.35 Gigahashes per second, generating 0.2405 BTC (Bitcoins) a day. At the current exchange rate of $128.88, that works out to about $31.00 per day in revenue, less power costs of 14 cents a day. To generate 5.35 gigahashes, you would need to spend about $8000 for multiple AMD video cards, if you went with GPU mining. I didn't buy an FGPA miner, so I have no idea, but I know some of the best FPGA miners barely reach 1 gigahash per second.

I also started mining Bitcoins about 3 years ago, when you could do it with a CPU, but I had nothing to spend them on. Nowadays, I have many thousands of them... and still nothing to spend them on. I haven't decided if I should cash out while I can, or hold them to see where the market goes. The Jalapeno is the first bit of dedicated Bitcoin hardware I've ever purchased. I only mined coins when I wasn't playing games or using my computers. However, it only cost me $308.00 with shipping. At the current difficulty rate, I will "break even" in 11 days, should I choose to sell the 3 Bitcoins the machine generates by then.

At any rate, sorry buddy, you missed the train.
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post #7 of 27 Old 05-24-2013, 08:14 PM - Thread Starter
 
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Quote:
Originally Posted by amarshonarbangla View Post

Quote:
Originally Posted by Mfusick View Post

So what's a decent rig going to produce in actual money value ?

Mining with one's personal rig, no matter how powerful it may be, is not worth it anymore. CPU mining has been long dead. GPU mining has also died since. Don't bother unless you are looking to buy an ASIC.

WTF is ASIC ?
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post #8 of 27 Old 05-24-2013, 08:18 PM - Thread Starter
 
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How is a $308 machine so good and so cheap ?

Why can't that be replicated ?
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post #9 of 27 Old 05-24-2013, 08:30 PM
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A simple Google search will yield all the answers you're looking for. This is far from the proper community to get information regarding BC from (though many members are familiar with it). Here's a solid article regarding the new mining hardware:
http://www.theverge.com/2012/11/16/3649784/bitcoin-mining-asics-block-reward-change
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post #10 of 27 Old 05-24-2013, 10:32 PM
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Quote:
Originally Posted by Mfusick View Post

How is a $308 machine so good and so cheap ?

Why can't that be replicated ?

ASICs are chips made specifically for mining bitcoins. So they are more efficient at doing what it does best than your average CPU or GPU.
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post #11 of 27 Old 05-25-2013, 12:28 AM
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ASIC = Application Specific Integrated Circuit, essentially software compiled directly to a dedicated chip, very efficient at one job and one job only.

And scl23enn4m3 is correct, bitcoins are about as far off topic from this forum's charter as one can get.

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post #12 of 27 Old 05-25-2013, 09:37 AM
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Quote:
Originally Posted by Mfusick View Post

How is a $308 machine so good and so cheap ?

Why can't that be replicated ?

This is actually an easy question to answer.

Development of an ASIC takes time. Anywhere from a few months to a year or longer in the case of major Bitcoin mining ASIC providers like Avalon and Butterfly Labs. Once the ASIC is developed, you need to have the chips produced. That also takes time, and no foundry is going to make your chips unless you're making in bulk. Minimum 10,000, but most foundries want 50,000+ to give your order any kind of serious consideration. This is the problem with Butterfly Labs right now. They've having chip supply issues (on top of power consumption issues). They have about 48,000 orders for their machines, which use multiple chips, but they apparently blew all their money they made with FGPA miners on other crap, so now they have to order 10,000 chips at a time and wait for their foundry to make them. At any rate, I digress.

Once your chip has been taped out and produced, then off they go to your assembly facility where you actually assemble them and the rest of the parts to produce your gadget, whatever it may be.

On top of this, you'd need knowledge of SHA-256 encryption, extensive knowledge of the Bitcoin source code, extensive knowledge of network protocols, and other areas of expertise to write yourself a Bitcoin mining program that could interface with your newly created ASIC chip as well.

To put it succinctly, all this device does is mine Bitcoins. That is all it will ever do. Unlike your CPU and GPU, it cannot be used to run Windows or play games or improve video output through processing. It is, quite literally, a Bitcoin miner, and that's all it is. That's why its cheap.
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post #13 of 27 Old 05-25-2013, 11:14 AM - Thread Starter
 
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Strong post^
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post #14 of 27 Old 05-25-2013, 11:20 AM
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If you already have an AMD 5XXX-7XXX GPU in a system running 24/7, its silly to NOT mine bitcoins. They are free money, but it's a lot of hassle to get it running. A 7950 can earn you about $2 per day at current rates, assuming 180 watts of additional power draw and $0.16/KWH power cost. The quickest way to get running is bitminter. Underclock your VGA memory as low as it will go, and overclock the CPU core as high as you're comfortable (watch the temps, they get very, very hot!).

My bedroom HTPC box (QUIETLY) runs a 7770 at 1080mhz/500mem at about 1.15v. It generates about $1/day of revenue, and a little less than that in net profit.
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post #15 of 27 Old 05-25-2013, 03:31 PM
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does it hog network ? or its all by processing power?

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post #16 of 27 Old 05-25-2013, 06:07 PM
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Processing power.
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post #17 of 27 Old 05-25-2013, 07:17 PM - Thread Starter
 
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Why is someone willing to pay for the processing ? Why are you rewarded ?
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post #18 of 27 Old 09-23-2014, 09:17 PM
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http://www.forbes.com/sites/kashmirh...y-labs-paypal/

Looks like some theories about what butterfly labs was doing were correct
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post #19 of 27 Old 09-30-2014, 02:59 PM
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if you dont want to invest in hardware, you could always hash by hand:

http://www.righto.com/2014/09/mining...and-paper.html

also a somewhat easy to understand explanation on how mining actually works.
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post #20 of 27 Old 09-27-2017, 07:13 AM
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Quote:
Originally Posted by Boze View Post
You've already missed the boat, period.

If you don't already, at this exact moment, have an ASIC miner purchased, or pre-ordered from either Avalon or Butterfly Labs, you don't have any chance of making any kind of money at all from Bitcoins. You might want to wait for the next huge Bitcoin crash and then buy a bunch of them and wait for them to increase in value again.

I pre-ordered a Jalapeno Bitcoin Miner from Butterfly Labs almost a year ago, and I finally received it in the mail a few days ago. Its hashing at about 5.35 Gigahashes per second, generating 0.2405 BTC (Bitcoins) a day. At the current exchange rate of $128.88, that works out to about $31.00 per day in revenue, less power costs of 14 cents a day. To generate 5.35 gigahashes, you would need to spend about $8000 for multiple AMD video cards, if you went with GPU mining. I didn't buy an FGPA miner, so I have no idea, but I know some of the best FPGA miners barely reach 1 gigahash per second.

I also started mining Bitcoins about 3 years ago, when you could do it with a CPU, but I had nothing to spend them on. Nowadays, I have many thousands of them... and still nothing to spend them on. I haven't decided if I should cash out while I can, or hold them to see where the market goes. The Jalapeno is the first bit of dedicated Bitcoin hardware I've ever purchased. I only mined coins when I wasn't playing games or using my computers. However, it only cost me $308.00 with shipping. At the current difficulty rate, I will "break even" in 11 days, should I choose to sell the 3 Bitcoins the machine generates by then.

At any rate, sorry buddy, you missed the train.
GAWD, looking back the train was still more than open to new passengers. Can't believe I ever opted out of the pool I was in based on the low exchange rate back then

@Boze if you held onto those you are now a millionaire (if you weren't already) congrats
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post #21 of 27 Old 09-27-2017, 07:30 AM
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GAWD, looking back the train was still more than open to new passengers. Can't believe I ever opted out of the pool I was in based on the low exchange rate back then

@Boze if you held onto those you are now a millionaire (if you weren't already) congrats
At under $200 at the time I'm sure they were not held onto for their current high. They were probably sold before $400. Who wouldn't have cashed out during any of the past gains?

The same could be said for many stocks as well.

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post #22 of 27 Old 09-27-2017, 09:22 AM
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At under $200 at the time I'm sure they were not held onto for their current high. They were probably sold before $400. Who wouldn't have cashed out during any of the past gains?
I never cashed anything out due to low volume and low price then ignored everything BTC for the past couple years. I'm sitting on 0.2 BTC that I obtained from running my gaming computer in a pool for about 2.5 months

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The same could be said for many stocks as well.
Yes indeed, hindsight is always a huge win. Just that many of us in these forums had rigs that we left on all the time anyway. Wondering if anyone came out like a bandit
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post #23 of 27 Old 09-27-2017, 10:18 AM
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Being left running is a bit different than left running at 100%.

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post #24 of 27 Old 09-27-2017, 01:20 PM
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GAWD, looking back the train was still more than open to new passengers. Can't believe I ever opted out of the pool I was in based on the low exchange rate back then

@Boze if you held onto those you are now a millionaire (if you weren't already) congrats
Thanks bud. I did actually hold onto about half of them. I sold half of the coins I had mined, about 1150 (I mined about 2300 at that point), at $800. I still have 1630.4 BTC. In the past, I seriously considered selling again, especially when Bitcoin broke $2000 a coin... but I suspected when the reward value dropped from 25 to 12.5, value would double (and it has). Now I think the smartest move is to hold... if they drop to $1500, I'll sell and be done with them without any regrets. At this point, it would be like selling Microsoft stock in the late 90s versus now. Yes, you'd be richer today, but you'd still have made a tidy profit if you got in MSFT in the early-to-mid 80s, and that's how I look at it. I got into Bitcoin early, but not really enough early to be one of the true "Bitcoin millionaires".

I still run several miners, even though they don't produce nearly as many BTC as the early days. I'm currently using 3 Bitmain AntMiner S9s, which are hashing at about 14 TH/s each, +/- 5%, and they consume around 1380 watts each. Electricity bill for these is around $360 per month, but they generate around 0.29 BTC each month, which is about $1200, so a net profit of around $800 each month. They were ordered for $1195 each, and by the end of next month, they'll have paid themselves off for BTC generation + electricity usage.

I didn't foresee network difficulty going down, which is the reason I posted what I did about people missing the train. Truth be told, even if you buy the new batch of AntMiner S9s for $2000 a pop, you'll still be making money because more and more people are getting out of mining due to electricity costs.
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post #25 of 27 Old 09-27-2017, 05:29 PM
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I know Fry's stopped taking video cards back because of bitcoins. I guess some were returning shopping carts full of cards...

I think it comes down to what your electrical costs are... based on your location.

Last edited by Charles R; 09-27-2017 at 06:02 PM.
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post #26 of 27 Old 09-27-2017, 05:33 PM
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bitcoin was in back about 8 years ago...day late now

oh mine...I thought invest...sry idk
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post #27 of 27 Old 09-28-2017, 05:56 AM
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Quote:
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selling Microsoft stock in the late 90s versus now. Yes, you'd be richer today

Errrrr

Yea stick to bitcoins.
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