do you think the bitcoin mining chip will become a reality? Is this http://asicminer.net a scam?
Bitcoin Miner does the math, calls it quits
71–80 of 101 posts
Re: Bitcoin Miner does the math, calls it quits
#72It seems like a shame that all that computational power is being wasted. I mean other than generating some hashes, what good does that really do? I think it'd be cool if somehow it tied into the folding@home type of stuff. Where the computations solved something meaningful, but there could also be some "monetary" incentive.
It seems a shame that all the effort that people put into making padlocks is being wasted, what good does that really do? Answer: padlocks, like bitcoin hashes, are a way of allowing people to collaborate without having to trust each other.
The rate of padlock production doesn't stay approximately the same when people double the amount of resources they put towards producing padlocks.
Re: Bitcoin Miner does the math, calls it quits
#73Earlier quoted context omitted.
Likely it will be a little worse than break-even, because there are always some people out there willing to attempt to generate coins even if what they are doing doesn't financially make sense, breaking the market. I'd guess that the percentage of miners and speculators in the BTC market who are economically irrational in their activities is a lot higher than most of us think it is. Ergo, I don't place too much faith…
Not to mention the lack of proper regulation. Particularly at the exchanges: http://nerdr.com/bitcoin-exchange-scam-bitcoins-are-worthles... I was days away from entering the Bitcoin marketplace until I read that. Now I realize it's speculation propping up an artificial market price. Saying that, I would be open to hearing opinions on estimates of the true value of a Bitcoin, based on it's use cases and value proposi…
How is that a scam? He charges $1.05 for a BTC when everyone else is charging $1.00. That's not a scam, that's just setting your own prices. Unless I am missing something here.
Re: Bitcoin Miner does the math, calls it quits
#74To be honest, when I read the original idea behind the bitcoin, I was thrilled. I thought This Is It (TM).
The monetary system, as it exists today is based on debt as a lever for growth. Banks can get a deposit of 1$ and God/King/Char/President/Whatever gave them the right to lend 5$ with it, and hold the 5th person under obligation of debt, to pay back that one dollar which the bank that gave it to him DIDN'T HAVE in the first place. You have to give back that 1 dollar or you will lose what you bought with it. Proponents of this practice call it "value" of potential, they argue that banks can do this because if they lend 5$ for every 1$ they have, people who borrow these 5$ will really work their asses off and pay 5$ back, which means that banks valuate the "potential" of the market to create 5$ out of 1$. Then come investors, speculating the value of this "potential", buying the debt and selling it again for 12$ this time etc.
I thought that bitcoin was a chance to fight back the economy of debt. Every coin is 1BTC, no bank would be able to get it and magically transform it to 5BTCs any more. Potential would once again be expressed as ability to produce more or better of your products made for the same cost and EXCHANGE them for more or better products made by someone else, REAL things as assets against REAL things as liabilities exchanged through a non manipulatable medium.
Then, I woke up :) Bitcoin adopters and proponents are so unbelievably vested in the current status quo that they managed to create a caricature of the same, old monetary system replicated in the bitcoin world: exchanges that don't exchange bitcoins but integers, speculators, market crashes... like Wall Street No.2... and naturally "It is not profitable any more, sell"...
Re: Bitcoin Miner does the math, calls it quits
#75Earlier quoted context omitted.
Not to mention the lack of proper regulation. Particularly at the exchanges: http://nerdr.com/bitcoin-exchange-scam-bitcoins-are-worthles... I was days away from entering the Bitcoin marketplace until I read that. Now I realize it's speculation propping up an artificial market price. Saying that, I would be open to hearing opinions on estimates of the true value of a Bitcoin, based on it's use cases and value proposi…
The "true value" of a Bitcoin is zero -- it's just some bits on a computer. In the same way, the "true value" of paper currency is very close to zero -- I guess you could use it for note-taking. The market value of Bitcoin will depend on the demand to own Bitcoin, as opposed to any competing commodity or currency.
Common myth, but it's false. Paper currency's true value is that the issuer is obligated to do something in return for it. Since that's usually governments, paper currency's true value is that you can use it to pay debts to that government. Everybody in the world can stop using US Dollars for anything else, but they'll still be useful for that, because that is basically the definition of a US Dollar. Says so right on the bill.
You can set your philosophical bar of "real value" higher than that, but there's not much light of day between that and a standard so high that it's not even theoretically reachable, at which point I stop caring about your definition of "real value" since when nothing can meet the bar, it's not a useful concept anymore. (But I do mean "not much", not "zero".) In the end, all value stores are transient on a century timescale, and I don't see that changing. Even gold hasn't had anything like a constant value. But for a putative currency, BitCoin is distinctive in its total disconnection from a concrete value.
Re: Bitcoin Miner does the math, calls it quits
#76Re: Bitcoin Miner does the math, calls it quits
#77It seems like a shame that all that computational power is being wasted. I mean other than generating some hashes, what good does that really do? I think it'd be cool if somehow it tied into the folding@home type of stuff. Where the computations solved something meaningful, but there could also be some "monetary" incentive.
It seems a shame that all the effort that people put into making padlocks is being wasted, what good does that really do? Answer: padlocks, like bitcoin hashes, are a way of allowing people to collaborate without having to trust each other.
> It seems a shame that all the effort that people put into making padlocks is being wasted, what good does that really do?
Sure, but if you could make it so a byproduct of the padlock manufacturing process was ice cream, wouldn't that be worth doing?
Re: Bitcoin Miner does the math, calls it quits
#78To be honest, when I read the original idea behind the bitcoin, I was thrilled. I thought This Is It (TM). The monetary system, as it exists today is based on debt as a lever for growth. Banks can get a deposit of 1$ and God/King/Char/President/Whatever gave them the right to lend 5$ with it, and hold the 5th person under obligation of debt, to pay back that one dollar which the bank that gave it to him DIDN'T HAVE i…
unbelievably vested in the current status quoRe: Bitcoin Miner does the math, calls it quits
#79Earlier quoted context omitted.
I'm a programmer with some liquid cash and an interest in doing things exactly like this for fun. Can you recommend any resources for getting started?
Mt Gox has an API: https://mtgox.com/support/tradeAPI
I was looking for things more along the lines of the theory behind constructing an automated trader
Re: Bitcoin Miner does the math, calls it quits
#80This comes to mind: http://www.reddit.com/r/Bitcoin/comments/i0r4o/ready_for_a_l...