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Bitcoin

2 Years Later

Fork


Quite an informative and pretty video on what Bitcoins are, how they work and what's in store for us.

Since some of the big checkout services have pulled out of allowing visa/mastercard transactions with nzb services and communities, many of them only accept Bitcoins as payment for VIP account.

Every time i've looked into it, it seems such a convoluted way to get one/any and every service that provides them charges a crazy surcharge.

Has anyone got any?
Spoon
Thank you for this, I've seen mention of Bitcoins showing up here and there and had no idea what they actually were.

As an added bonus it's even narrated by Marc Fennell.

Now that I've watched it, I want to look into how the mining thing works since it just sounds like some sort of distributed computing. Which would mean you just let your computer run this crap in the background and you eventually end up with free money?

Very interesting indeed. Once they're all "mined" then I guess their value goes up...indefinitely?
Wiing
Yea I use Walletbit, and use http://www.spendbitcoins.com to purchase bitcoins.

In Australia it is quite hard to get bitcoins as you need to physically go to a bank and transfer money. Spendbitcoins is really fast, I got them within an hour.

I used them to buy VIP status, I haven't bought anything yet from bitcoin ebay yet.

I have been thinking about investing a few hundred in it, but it could be a bubble, and I don't have much liquid funds atm.

The mining idea seems cool, I'll have to look into it.
Spoon
This is the first google result and it does sound quite a bit like most distributed computing programs.

http://techcrunch.com/2013/04/08/how-to-mine-bitcoins/

Sounds like working in groups for a percentage of the results is the only way to get anywhere with it at this stage too.

You work for shares in a block and when complete you get a percentage of the block based on the number of workers alongside you, less fees.
Neifelheim
So this story about a guy that got conned by a shady dude operating an "Australian Based Bitcoin Exchange" made it to mainstream media. - Yes It's CryptoXChange the company that collapsed/cashed in/shutdown late last year

http://www.abc.net.au/news/2013-04-...in-boom/4616992

TL:DR guy figures out he's been scammed months after the company runs with his bitcoins and involves the media.

Best quote from Leo Treasure (Victim) - "I trusted him because he had an Australian Company Number, I thought he was legit".



Has anyone got any?


No - it seems like a revolutionary idea ...but everything screams gimmicky ponzi to me.

There is a large following of Bitcoiners on Reddit and Something awful … I know SA has 3 massive threads on alone on it.

http://forums.somethingawful.com/showth … id=3537995
http://www.reddit.com/r/Bitcoin/

Seems bitcoin prices have gone through the fucking roof atm and I'm hearing some people yelling 'sell,sell' while you still can.

I admit I don't understand the full process but mining bitcoins goes something like this -

1. Get software and run on your computer.
2. Computer goes into overload and 'mines' bitcoins. make sure to setup your mining setup so that you can do something with all that extra heat - ie. heating your large home, dehyrdating fruit, drying your clothes.

http://siliconangle.com/blog/2011/11/22 … ining-rig/
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3. Profit - congrats you just mined a bitcoin worth x amount of whatever conversion rate is.
4. Cost - Congrats your energy provider sends you an energy bill that makes your eyes water and your overtime hours soar.

People who are into 'serious' bitcoin mining have specialised rigs dedicated to it -

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Fork
Spoon wrote:
Now that I've watched it, I want to look into how the mining thing works since it just sounds like some sort of distributed computing. Which would mean you just let your computer run this crap in the background and you eventually end up with free money?


A link from the "Getting Started" link on /r/Bitcoin

Can I generate Free Money on my computer? - TL;DR - Not really.
Neifelheim
So according to the test client my cpu and gpu will mine approx .0032 bitcoins per day.

I think I'm going to have to sit the bitcoin revolution out guys.

Further reading on those pre-orders.

Apparently there is only 1600 confirmed 'paid' orders for that rig so far. Still thats crazy.
Neifelheim
http://mtgoxlive.com/orders

So bitcoins are sitting at $191 US atm.

Who wants to play the game of 'speculate' and throw $1000 in and see how high they can ride it before it comes crashing down?

This is pretty exciting (probably a helluva lot more exciting for people that actually own bitcoins) How high can it go? It is a bubble or is the awakening of a giant as this thing goes viral?

Wiing wrote:

I have been thinking about investing a few hundred in it, but it could be a bubble, and I don't have much liquid funds atm.



A few hundred will buy you approximately 1 - 2 bitcoins. I think they were worth like $30 a few weeks ago.
Last edited by Neifelheim on Apr 9th, 2013, 4:54 pm, edited 1 time in total.
Neifelheim
Fork wrote:
I really wish I got some when they were around AU$15each a few months ago =/


Looking at some graphs now.….this thing looks a fucking challenger 7 space launch....it has to crash.

When it does buy a couple hundred $ worth and sit on it till the next bubble.

Buying now just seems very speculative.

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Jiminy
I know it started going a bit crazy on reddit over the last week. That may have helped. Anyway, it all sounds like some weird techno babble to me.

What's protecting the mine? What's stopping the algorithm from being changed and releasing more or less bitcoins? Who controls this algorithm?
Neifelheim
Jiminy wrote:
I know it started going a bit crazy on reddit over the last week. That may have helped. Anyway, it all sounds like some weird techno babble to me.

What's protecting the mine? What's stopping the algorithm from being changed and releasing more or less bitcoins? Who controls this algorithm?


I'm still trying to work all this shit out myself.

In neif layman terms (and I really don't know what I am talking about) -

Bitcoin - is an individual bit of encrypted code?hashcode? As time goes on and more get mined there are less bitcoins to actually 'mine'. Hence why they are rising in value? What I 'think' is an uncrackable piece of code.

Mining - The process of a gpu? running through data cycle/computational shit/running algorithms to actually 'find' a bitcoin.

No one controls the bitcoin but the owner of the bitcoin itself. No higher central authority like a central bank or government can interfere or has access to the transaction. Thats why bitcoins are gaining popularity with the crime world - Its a fantastic way to launder money.

From what I can gather Reddit seems very receptive to bitcoins - where as SA bitcoins are treated with derision and deep doubt.
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