Bitcoin Mining
- Thread starter ABenz99
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G80FTW
Active Member
Except in any physical store in the usa. Its only good on select sites online.
One thing that interest me is that it does say that the bitcoin will stop at just under 21 million. However:
This does not appear to be the case at all according to this:
https://blockchain.info/charts/tota...ageString=1&show_header=true&scale=0&address=
09-10 = +1.6 million ~
10-11 = +3.4 million ~
11-12 = +3 million ~
12-13 = +2.5 million ~
13-14 = +2 million ~
The bitcoins "created" each year are not halved at all. If it continues this trend, which I dont see why it wouldnt, then it will theoretically stop in 3 years. Not 2140 like this site claims:
http://bitcoinfaq.com/
Its hard not to be skeptical of something that has such a vague definition of what its actually doing. Solving math problems tells me absolutely nothing. And none of the numbers given seem to add up. I still smell a scam.
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TrainTrackHack
VIP Member
Which link? The only one I saw mentioning ANY successful hacking attempt was the wikipedia article, which finishes with "This was the only major security flaw found and exploited in Bitcoin's history." It was a flaw and it was corrected. And if you look at the actual vulnerability summary, you'll find that it was a programming flaw; the problem was not the mathematics or theory behind bitcoin.
They are limited because blocks are hashed, and acceptable hashes follow a certain format (they need to have a set number of leading zeroes, and the number increases with time, thus increasing difficulty.) Since the hashes have fixed length, there's obviously a limit to the number of distinct, valid hashes that can exist.
What do you mean by a "vague definition"? It's very well defined, you can read the source of any bitcoin client/miner, you could read the actual protocol specification, Getwork protocol, or you could read the paper I linked to before.
G80FTW
Active Member
I guess only the good people of 2140 will know for sure. Or the next person who hacks it. Or in the next 3 years.
TrainTrackHack
VIP Member
...know what for sure?
G80FTW
Active Member
When the bitcoin will stop, or if it even continues until it stops. Like I said, the governments would love to shut it down Im sure. And just because it currently has a "theoretical" limit does not mean that cannot be altered at some point in time. Its a computer program, computer programs are made to be modified.
My guess is the bitcoin will disappear LONG before 2140 when its scheduled to peak. I bet it reaches 20 million in the next couple years giving the rate that its going at right now. Of course, that also would strongly depend on the people investing into it.
G80FTW
Active Member
Client, application, all the same thing. Hash? In my day hash was something people smoked
PCunicorn
Active Member
You're 24 so chances are "you're day" wasn't long ago, but that's beside the point.
And for the way Bitcoin works, its not based on any client. You're wallet is. Its impossible to manipulate Bitcoin itself.
And slightly off topic, but another step forward for BTC: http://www.tigerdirect.com/bitcoin/
And for the way Bitcoin works, its not based on any client. You're wallet is. Its impossible to manipulate Bitcoin itself.
And slightly off topic, but another step forward for BTC: http://www.tigerdirect.com/bitcoin/
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G80FTW
Active Member
Well back on topic, we have established that there is no profit to be found in bitcoin mining and that its not an established currency in the usa (never will be).
So, i think the original question has been answered and then some.
TrainTrackHack
VIP Member
Oh, of course. Whether they will be successful is another thing,
No, of course it does not. But it does require that majority of the network upgrades to a modified client; under the current protocol it is impossible, however, and I don't see why the cap would be lifted.
Well, we don't know this yet.
G80FTW
Active Member
Actually we do, because in america along with many other countries its highly illegal to produce and distribute your own currency. Like i said, the only reason bitcoin gets around it is because its not a physical currency. It will never be able to be used in a physical store in america legally unless the law changes to allow it and i doubt that.
ABenz99
Member
Alright, I've concluded that there is little to no profit in bitcoin mining. Also, I don't have enough $ yet to buy the hardware, so by the time I save up enough, there will be even less profit than there is now. I don't really care if bitcoin can be used as a primary currency in the US because like I said, I am only interested in mining. My only other question is about other crypto-currencies. Would it be more profitable to mine litecoin, or something like that?
G80FTW
Active Member
From what I am seeing, there is really only profit to be made at the start of these things. After that, its just a waste. Im still puzzled at HOW there is a profit from this. The world just doesnt make sense anymore.
Okedokey
Well-Known Member
That is because you don't get it.
bomberboysk
Active Member
Where, exactly, do these laws exist within the United States Code? Disregarding "virtual" currencies, there's a number of private currencies in circulation within the United States. U.S. laws only prohibit counterfeiting of U.S. Currency AFAIK.
And bitcoin transactions are allowed in thousands of stores across the U.S, with a fair number of retailers accepting various other virtual currencies.
There actually is potential for profit in bitcoin mining. Specialized mining IC's such as FPGA's and ASICs can generate enough BTC than how much they cost to operate on power, but as difficulty increases, they may never be able to pay for themselves. On the other hand, it's entirely possible that bitcoin could go up enough in value that even though it appears you're running at a loss right now, you potentially profit. It's not guaranteed by any means though. And a US Federal judge has ruled that BTC is a "Currency or form of money", so at least in the Eastern District of Texas, it's a form of Currency.
http://arstechnica.com/tech-policy/...currency-can-be-regulated-under-american-law/
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G80FTW
Active Member
Your right. I will never understand why people value things that are not real.
http://codes.lp.findlaw.com/uscode/18/I/25/486
"Whoever, except as authorized by law, makes or utters or passes, or attempts to utter or pass, any coins of gold or silver or other metal, or alloys of metals, intended for use as current money, whether in the resemblance of coins of the United States or of foreign countries, or of original design, shall be fined under this title (!1) or imprisoned not more than five years, or both."
http://blogs.findlaw.com/legally_weird/2012/01/make-your-own-currency-spend-5-years-in-jail.html
"This prohibition arguably applies to paper money as well. Article 1, section 8, clause 5 of the U.S. Constitution gives Congress the power to coin money and regulate its value. The Justice Department believes this gives the federal government the "concurrent power to restrain the circulation of [private] money."
The Liberty Dollar as an example:
http://www.nytimes.com/2012/10/25/u...his-fate-behind-bars.html?pagewanted=all&_r=0
Also, your link does not state that a federal judge actually RULED that the BitCoin was a currency in the USA, it said:
"In a four-page memorandum opinion issued on Tuesday, Judge Amos Mazzant wrote (PDF) to determine whether his court has jurisdiction in the case." Meaning he did not over-ride the government but is trying to.
"a US federal agency, the Financial Crimes Enforcement Network (FinCEN), published new guidelines stipulating that Bitcoin-related businesses should be considered as Money Services Businesses under US law." Simply states that it SHOULD be considered as an MSB, not that it IS. Originally, the BitCoin has been able to get around the first law that I provided you with because it is not "money" and does not exist in physical form. Nor is it accepted anywhere in the USA but online.
Basically what I am getting from that article is that the founder of BitCoin was charged with running a ponzi scheme (which it really is) and that the courts are trying to regulate the BitCoin under US law. Which COULD make the BitCoin a legal currency in the US but would still have the same regulations as the Dollar defeating the purpose of BitCoin entirely.
Also, maybe take a look at the civil war. You may have missed this in history class but the civil war was mainly about the government getting rid of the confederate currency.
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TrainTrackHack
VIP Member
lol
It is real. It just doesn't (generally) exist in physical form, and has little intrinsic value. But it is real, just as real as the pieces of paper and metal people buy stuff with.
No.
G80FTW
Active Member
Its real? I didnt realize that when a computer solves a "math problem" its result becomes real and in physical form. Real involves having 3 dimensions. The bitcoin does not.
Oh, and you meant "has no value". Not little. None. Zero.
Its real in the same sense that GTAV money is real. Its the EXACT same concept.
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