Anyone here got into cryptocurrencies ?

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Anyone here got into cryptocurrencies ?

Post by zeuzzz » Fri Jan 17, 2014 1:24 am

I've made a good few grand over the last months mining cryptocurrencies.

I started with a simple 32-38gh/s ASICminer cube about 5 months ago. Within 3 months I made at least 0.9 BTC (£500), and then sold it for what I brought it for (£500+500).

Since then I've targeted my 7990 GPU at multipool mining urls and set up a really efficient autosell config for all the alt-coins based on a scrypt algorithm at cryptsy.com. So far I'm making at least £15 a day, simply due to the hashing power of my graphics card combined with my settings at multipool.us and cryptsy ... I mainly sell at http://www.bitbargain.co.uk/buy" onclick="window.open(this.href);return false;. That way it's straight into my bank account.

The only way is up as far as i'm concerned with these virtual cryptocurrencies ... Why the hell not, is my main question :D
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Re: Anyone here got into cryptocurrencies ?

Post by Kaepora Gaebora » Fri Jan 17, 2014 1:34 am

The reason being is the cryptocurrencies are behaving as speculative investments, meaning they have a wild and unpredictable value. Banks are unlikely to convert them, the return compared to the hardware purchased and electricity used is diminishing, and you don't really find many stores taking them.

In a way, I would only see it as merely a hobby. It's likely the speculative bubble will burst eventually.

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Re: Anyone here got into cryptocurrencies ?

Post by Kaepora Gaebora » Fri Jan 17, 2014 1:49 am

(But, 15 pounds a day is really good, don't get me wrong!)

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Re: Anyone here got into cryptocurrencies ?

Post by zeuzzz » Fri Jan 17, 2014 2:38 am

Boom shakalakala

http://coinmarketcap.com/" onclick="window.open(this.href);return false;

££££££

Ignore ripples, that is such a scumcoin it's unbelievable the let it on their site ...
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Re: Anyone here got into cryptocurrencies ?

Post by zeuzzz » Sat Jan 18, 2014 9:06 pm

My dogecoins have x10 in price in a week now :D 100 in, 1000 out. Thank god I stockpiled them, I knew the meme would draw an entirely new demographic.

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Re: Anyone here got into cryptocurrencies ?

Post by octopus1 » Sun Jan 19, 2014 3:54 am

Have you been able to cash them in?
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Re: Anyone here got into cryptocurrencies ?

Post by Lillyfee » Sun Jan 19, 2014 11:35 pm

I cannot believe that dogecoin actually got serious, I believe everything started in Reddit and now took off really well. I guess I have to ask somebody to explain the cryptocurrencies and how does one mine them like I'm five :D

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Re: Anyone here got into cryptocurrencies ?

Post by octopus1 » Mon Jan 20, 2014 9:46 am

Lillyfee wrote:I cannot believe that dogecoin actually got serious, I believe everything started in Reddit and now took off really well. I guess I have to ask somebody to explain the cryptocurrencies and how does one mine them like I'm five :D
Like any other currency system, they are subject to "boom" times and "bust" times. Because of the limited interest in them, and lack of regulation, one can simultaneously believe they've made a fortune whilst remaining (in real terms) piss poor...

A manipulative and intelligent person could, theoretically, make a lot of money by playing around with it. But, ya know, 'ethics' and such... :P
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Re: Anyone here got into cryptocurrencies ?

Post by zeuzzz » Tue Jan 21, 2014 4:53 pm

octopus1 wrote:Have you been able to cash them in?
Yeah I simply set an auto threshold at multipool to 10k dogecoins, and then it instantly gets transferred to my dogecoin address I enter there to my cryptsy account.

then I set up autoselling on my cryptsy account to immediately trade them for either bitcoins or litecoins (whichever one is doing best).

Then it takes about 20 minutes to xfer the BTC/LTC to bitbargain, and I just have to list them for sale there and wait for an order, and that way it's straight into my bank account, I can release the BTC/LTC from escrow, and done.
Lillyfee wrote:I cannot believe that dogecoin actually got serious, I believe everything started in Reddit and now took off really well. I guess I have to ask somebody to explain the cryptocurrencies and how does one mine them like I'm five :D
Erm I could write for pages but in a nutshell they are a decentralized virtual currency based on algorithms. Bitcoins use sha-256 (along with a few others) and litecoins use scrypt. There is a finite amount of both currencies to avoid inflation and debasing the currency (ie, when all are created you can not 'print more' fiat currency).

The former sha-256 algorithm could be mined on a CPU by cracking blocks until the network difficulty got ridiculous, and people started creating bespoke hardware to mine this algorithm (ASICminers). The latter scrypt can be mined on most GPUs, but now the mining difficulty is going up the more people are doing it you have to have a GPU that costs over about £250 to make a return on investment, and even then it's uncertain where the future price of these currencies will go, and how quickly the network difficulty will rise. I think I cottoned on just about in time to get an ROI on my GPU.

I duno why i'm telling you this, as the whole point of mining is the more people do it the harder it gets for other miners.

There currencies are basically an extremely easy way to send any amount of any currency to anywhere in the world and negate bank fees and other centralized money transfer schemes. You could send £1,000,000 in bitcoins to india in about 10 minutes and pay (nearly) no fees. Previously that would take weeks and cost you thousands upon thousands.
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Re: Anyone here got into cryptocurrencies ?

Post by zeuzzz » Fri Jan 24, 2014 12:56 am

Mined 200k mooncoin in 4 days. Cost me nothing, sold them for £875 :D

LMFAO
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Re: Anyone here got into cryptocurrencies ?

Post by zeuzzz » Fri Jan 24, 2014 1:07 am

A pm here will not go unnoticed.
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Re: Anyone here got into cryptocurrencies ?

Post by octopus1 » Fri Jan 24, 2014 9:27 am

zeuzzz wrote:A pm here will not go unnoticed.
I would feel quite ill at ease, making money from people who didn't know better. There's a part of me thinking "Ooh, money for kitchen gadgets!". Then there's the part that says "Hang on, deception by any other name would smell as rotten..." ;)
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Re: Anyone here got into cryptocurrencies ?

Post by Matthew Ellard » Wed Jan 29, 2014 12:19 am

zeuzzz wrote:Mined 200k mooncoin in 4 days. Cost me nothing, sold them for £875 :D
I hoped you complete your IRS Form 1099-B.
Proceeds From Broker and Barter Exchange Transactions
http://www.irs.gov/pub/irs-pdf/f1099b.pdf" onclick="window.open(this.href);return false;

I am waiting for the first big "scams" when cryto-currency" users attempt to redress trading inflows as capital to obtain the lower marginal tax rate. The law is already well established. It is the enforcement on traders that needs work.

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Re: Anyone here got into cryptocurrencies ?

Post by SweetPea » Wed Jan 29, 2014 12:29 am

octopus1 wrote:
zeuzzz wrote:A pm here will not go unnoticed.
I would feel quite ill at ease, making money from people who didn't know better. There's a part of me thinking "Ooh, money for kitchen gadgets!". Then there's the part that says "Hang on, deception by any other name would smell as rotten..." ;)
I'm curious now. How is this different from other speculative enterprises? By that, I'm not thinking of collapse of the currencies, but on how it could be considered deceptive wrt people who aren't knowingly speculating.

BTW, Zeuzzz, which graphics cards did you stockpile?
How do the Deniers get so lucky?
http://www.skepticforum.com/viewtopic.php?f=16&t=24129" onclick="window.open(this.href);return false;

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Re: Anyone here got into cryptocurrencies ?

Post by octopus1 » Wed Jan 29, 2014 12:47 am

SweetPea wrote:
octopus1 wrote:
zeuzzz wrote:A pm here will not go unnoticed.
I would feel quite ill at ease, making money from people who didn't know better. There's a part of me thinking "Ooh, money for kitchen gadgets!". Then there's the part that says "Hang on, deception by any other name would smell as rotten..." ;)
I'm curious now. How is this different from other speculative enterprises? By that, I'm not thinking of collapse of the currencies, but on how it could be considered deceptive wrt people who aren't knowingly speculating.

BTW, Zeuzzz, which graphics cards did you stockpile?
From what I can glean, the online currencies available are a game between the "greedy" and the "gullible". Although perhaps the terms I'm using there are too harsh.

No worse than credit cards. Just newer, and ripe for scrutiny ;)

After the feeding frenzy is over, perhaps the systems can normalize. Into a valid and acceptable currency exchange mechanism. Until then, I for one am bound to abstain...
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Re: Anyone here got into cryptocurrencies ?

Post by SweetPea » Wed Jan 29, 2014 1:17 am

If people commit to do work for "X" amount and the currency dives it could be trouble for them, I guess.
How do the Deniers get so lucky?
http://www.skepticforum.com/viewtopic.php?f=16&t=24129" onclick="window.open(this.href);return false;

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Re: Anyone here got into cryptocurrencies ?

Post by octopus1 » Wed Jan 29, 2014 1:28 am

SweetPea wrote:If people commit to do work for "X" amount and the currency dives it could be trouble for them, I guess.
If I offer to renovate your house, pay in cash. I'll apologize for not being able to do it properly, later on :lol:
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Re: Anyone here got into cryptocurrencies ?

Post by SweetPea » Wed Jan 29, 2014 1:40 am

We'll call that the "ceiling debt".
How do the Deniers get so lucky?
http://www.skepticforum.com/viewtopic.php?f=16&t=24129" onclick="window.open(this.href);return false;

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Re: Anyone here got into cryptocurrencies ?

Post by octopus1 » Wed Jan 29, 2014 1:48 am

SweetPea wrote:We'll call that the "ceiling debt".
:P

Be careful of the flooring too, The rough finish was my attempt at "adding character" ;)
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Re: Anyone here got into cryptocurrencies ?

Post by Matthew Ellard » Thu Jan 30, 2014 2:58 am

octopus1 wrote: From what I can glean, the online currencies available are a game between the "greedy" and the "gullible". Although perhaps the terms I'm using there are too harsh.
The USA had over 1650 different currencies until 1866.
Delaware_Bridge_Company_Dollar.jpg
In the 20th century it still has BerkShares, LETS, Time dollars and so on.

The Tax Equity and Fiscal Responsibility Act of 1982 allows the IRS to assess barter exchanges (crypto currencies) under their monetary equivalent. [/color]

"Barter exchanges are considered taxable revenue by the IRS and must be reported on a 1099-B form"

What happens is that the bartered "currency" grows to a certain size and then it becomes financially viable to justify taxation enforcement, generally through a series of "showcase" taxation cases in superior courts. As "Bit coins" has no owner it seems that there will not be any financial contribution to the "taxpayer defendant" who first suffers indictment. It's just a matter of time.
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Re: Anyone here got into cryptocurrencies ?

Post by zeuzzz » Sun Feb 02, 2014 3:05 am

SweetPea wrote:If people commit to do work for "X" amount and the currency dives it could be trouble for them, I guess.
If you make bad choice on the coin you choose to mine based on all the available data, then you loose. The trick is knowing which ones will work based on the code and various code forks, if you get it right and can pre-empt the market, then you win. All it really takes is a brief analysis of their source code and their creativity.

I stockpiled mainly 7950's.
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Re: Anyone here got into cryptocurrencies ?

Post by zeuzzz » Thu Feb 06, 2014 7:02 pm

Some coins are crazy, a 20x increase in profit in 2-3 days for this one: http://coinmarketcap.com/vtc_30.html" onclick="window.open(this.href);return false;

graph

Image
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Re: Anyone here got into cryptocurrencies ?

Post by SweetPea » Mon Feb 10, 2014 2:52 am

http://www.extremetech.com/computing/17 ... ithdrawals" onclick="window.open(this.href);return false;

Zeuzzz,
Is it THE END?
How do the Deniers get so lucky?
http://www.skepticforum.com/viewtopic.php?f=16&t=24129" onclick="window.open(this.href);return false;

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Re: Anyone here got into cryptocurrencies ?

Post by octopus1 » Mon Feb 10, 2014 3:05 am

[ytube][/ytube]
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Re: Anyone here got into cryptocurrencies ?

Post by SweetPea » Mon Feb 10, 2014 2:11 pm

Zeuzzz, what kind of return could one currently expect from using an ordinary mid range intel CPU and graphics card but not investing in anything (electric bill not included)?
How do the Deniers get so lucky?
http://www.skepticforum.com/viewtopic.php?f=16&t=24129" onclick="window.open(this.href);return false;

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Re: Anyone here got into cryptocurrencies ?

Post by zeuzzz » Fri Feb 14, 2014 4:00 am

SweetPea wrote:http://www.extremetech.com/computing/17 ... ithdrawals

Zeuzzz,
Is it THE END?
No.

My.Gox is only about 10% of the market share. The amazing thing about these crypocurrencies is that even if half of the major exchanges get legall shut down it's now impossible to stop people having bitcoins on their hard-drive or trading them with each other. This is what happened a month or three ago when china banned some bitcoin exchanges, price crashed from $1200 to $400. Then people started buying again due to the price drop, and bitcoin bounced back in terms of paper money value within a few weeks.

Also to respond to the bubble comment bitcoin and similar currencies are not a bubble as they have intrinsic value not based on debts, or the mis-spending of various institutions.
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Re: Anyone here got into cryptocurrencies ?

Post by zeuzzz » Fri Feb 14, 2014 4:04 am

SweetPea wrote:Zeuzzz, what kind of return could one currently expect from using an ordinary mid range intel CPU and graphics card but not investing in anything (electric bill not included)?
With a CPU you are not going to make anything in BTC directly, your best bet is to research and choose a CPU mining only coin (quarkcoin, maxcoin, etc) then trade them for BTC at an exchange.

Also unless you can get anything above 500mh/s with a GPU then it's not really worth your time, you might get £20 a month or so depending on your choice of pool. With 3000mh/s and the right coins chosen you can make as much as £200 a month. I made about £300 last month, due to a good choice in coins.

Gowever if you have trust in the long term value of these virtual currencies then that £300 could end up being £3000 in a year, or £30. A crystal ball would be helpful.
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Re: Anyone here got into cryptocurrencies ?

Post by SweetPea » Fri Feb 14, 2014 4:25 am

Thanks Zeuzzz. I see the new machines are sold in advance and are getting hugely over manufacturer selling price! Interesting.
How do the Deniers get so lucky?
http://www.skepticforum.com/viewtopic.php?f=16&t=24129" onclick="window.open(this.href);return false;

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Re: Anyone here got into cryptocurrencies ?

Post by zeuzzz » Fri Feb 14, 2014 5:01 am

SweetPea wrote:Thanks Zeuzzz. I see the new machines are sold in advance and are getting hugely over manufacturer selling price! Interesting.
You mean pre-built mining rigs?
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Re: Anyone here got into cryptocurrencies ?

Post by SweetPea » Fri Feb 14, 2014 5:45 am

Yeah, though I might have been looking at an older report. In the $20,000 range for an Avalon smaller than you're talking about.
How do the Deniers get so lucky?
http://www.skepticforum.com/viewtopic.php?f=16&t=24129" onclick="window.open(this.href);return false;

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Re: Anyone here got into cryptocurrencies ?

Post by zeuzzz » Fri Apr 04, 2014 9:01 am

Have a few grands worth of BTC if anyone wants to buy now while they are cheap. Can cut them into whatever denomination you want.

China has just moved to ban all the main big trades in their country, even though since Bitcoin is simply a protocol like the internet was 15 years ago and is therefore pretty much impossible to ban (unless you nuke everyone hard-drives somehow). They can't place a firewall on this protocol as easily as they did the internet luckily.

What essentially Bitcoin did was solve the attribution problem of fiat currencies. Which have always been historically banned as the people in power with the most money and time invested in the current systems could always sue the person who produced it and take them down under money laundering laws. Yet since Bitcoin is inherently decentralized by design and based on mathematical principles at every usual point of failure there is no one to sue for making money from it (just like when the scientists at cern tried to put royalties on their version of darpa net (the original internet) by design, Tim Bernards Lee later invented the http protocol and gave it out for free by design, which is when it took off), and therefore BTC will simply grow and grow, just like the internet did 20 years or so back.

Whether or not the first iteration of cryptocurrencies will be the main standard used for all future ones or another crypto will overtake it is an interesting area, but bitcoin is already by far the most used and valuable. It's become the gold standard of online currencies.

lil surpsied with current BTC price, but given what china did with the internet always thought this was an inevitable set back we would had to put up with at some point.

https://bitcoinwisdom.com/" onclick="window.open(this.href);return false;
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Re: Anyone here got into cryptocurrencies ?

Post by zeuzzz » Fri Apr 04, 2014 8:02 pm

For those interested in the actual science of this here is the seminal scientific paper that lead to the creation of the system by an anonymous author under a pseudonym. Here is a video of someone reading it:

[ytube][/ytube]
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Re: Anyone here got into cryptocurrencies ?

Post by zeuzzz » Fri Apr 04, 2014 8:11 pm

Please don't take this as sales pitch :D And you all just missed out I've already sold them at bitbargain and gotten the money. So no pms please.
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Re: Anyone here got into cryptocurrencies ?

Post by SweetPea » Fri Apr 04, 2014 8:43 pm

Do you see the graphics cards price dropping yet?
How do the Deniers get so lucky?
http://www.skepticforum.com/viewtopic.php?f=16&t=24129" onclick="window.open(this.href);return false;

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Re: Anyone here got into cryptocurrencies ?

Post by zeuzzz » Fri Apr 04, 2014 8:48 pm

SweetPea wrote:Do you see the graphics cards price dropping yet?
I don't think that high hash rate GPU's prices will ever drop now this protocol has been created.
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Re: Anyone here got into cryptocurrencies ?

Post by SweetPea » Sat Apr 05, 2014 3:22 pm

I'm gonna buy up a half dozen or so Asus 7850's people buy/bought which don't fit into the small cases.
It's really a perfect, quiet, cool, big little card, low power, only six pin.
How do the Deniers get so lucky?
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Re: Anyone here got into cryptocurrencies ?

Post by Kaepora Gaebora » Sun Apr 06, 2014 2:43 am

Thing is, you and everyone else mining it are treating it like the US Treasury defined it as: a commodity. You invest in it and sell it for money. It's not used as a form of debt or currency to purchase something as much as investments for free money. A business could take bitcoins as payment but they will transfer it to local currency for bigger returns, not use it to barter with other companies or people.

Bitcoins would need to face a sudden shift to actual currency exchange to be successful as a currency. So far it is a speculative investment that is highly unstable. Losing half its value in a month is indicative of such. If it doesn't and bitcoins supply is exhausted, it will face the bottom being pulled out and bitcoins will lose their value because nobody wants to barter with them. People who invested actual money into cryptocurrency and don't sell them will be the losers in such a situation.

Don't get me wrong, cryptocurrency is not a bad idea by itself. The way it is being handled and the equipment needed for such currency, though, is ridiculous, and favors those with specialized mining equipment and cash. That means there is a limited market for this currency from the get go.

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Re: Anyone here got into cryptocurrencies ?

Post by zeuzzz » Sun Apr 06, 2014 5:52 am

People starting to mine now are joining the curve at just about the point it's leveling off, yea, but choose your coin wisely (luck plays a part now) and you could still make a fair amount.
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Re: Anyone here got into cryptocurrencies ?

Post by octopus1 » Sun Apr 06, 2014 12:27 pm

zeuzzz wrote:People starting to mine now are joining the curve at just about the point it's leveling off, yea, but choose your coin wisely (luck plays a part now) and you could still make a fair amount.
I'm sure that the luck element gives you a sense of excitement, and that's worth something. But the entire system has "crash" written all over it.

As a popular currency market place for "home users", it sounds like fun. When larger companies start engaging in it with gusto (And they will, because the corporates will do anything to stay ahead of the trend...) then it will probably become a dangerous place.

If you can say "easy come, easy go" without developing a chip on your shoulder, or bankrupting yourself, enjoy! Otherwise, be fair warned...!
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Re: Anyone here got into cryptocurrencies ?

Post by zeuzzz » Sun Apr 06, 2014 12:31 pm

octopus1 wrote:But the entire system has "crash" written all over it.
Why do you say this, can you actually give a reason why?

Researching the actual architecture of this protocol and how stable it is (bitcointalk forum is a good start) is reather interesting. I don't think these things now created will ever go away now or crash.
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