Bitcoins - anyone else mining? (3 Viewers)

[Jojo the circus boy]

www.bitminter.com is much better and easier to use.

The graphics card on my IBM machine must be crappy because I can only get ~1.5 Mhps whereas on my iMac I get ~56Mhps. My MBP only gets ~6Mhps.

All of it is laughable though. At ~56Mhp, your expected Bitcoin yield/day is 0.0037 which is worth about $0.26. 1 Bitcoin is worth about $70.

The money is made by the guys taking little pieces from everyone and will be made by the exchanges IMO. That's assuming Bitcoin doesn't implode.

With my 7970 I was getting between 500-600 MHash/s and the payout was about $2.83 overnight. I stopped running it though since I didn't want to burn out my card.There's definitely potential for money to be made as the hardware technology improves in the near future.

As more coins are mined, the algorithms become harder taking away any gains that your technology makes.

Show me the math.

I'll pass on the math thanks. The system is designed to make it more difficult for coins to be mined as more are produced. Basic logic then tell us that as technology advances, so will the number of coins being mined and so the algorithms will get tougher. Provided that the system was setup properly, mining speeds should stay fairly linear with hardware speeds. And in a year or two when there are tens of thousands of more people mining them, productions rates will most likely fall.But hey, knock yourself out. Might want to give this a read.

The Butterfly site already linked in this thread and mentioned in your article sells a 1500GHz/s system (is shipping end of this month). The math is really not that difficult for you to understand that your statement:

>As more coins are mined, the algorithms become harder taking away any gains that your technology makes.<

/span>

does not hold water. Hell even do the math on the 50 GH/s going for $2500, I already told you what the return on my 500MH/s video card was ($2.83/day). If you really need help, the yield of 50 GH/s compared to 500 MH/s is 100:1.

Way to miss point.

Yes, if you jack up all your hardware, you will see an increase in production. As time wears on, you are going to be producing less and less with that same equipment; not the same, not more. So you go buy some fancy new gear to get back to what you were previously producing. Rinse, repeat.

Keep running your card that is making $2.63 a night and watch how you gradually produce less and less each night.

But you said all gains would be taken away? That's not true, in 1 month you regain the cost of the hardware upgrade, everything after that is gravy, who cares if your profit goes down over time, you are playing with house money. You make it sound like it is impossible to make any money since the horsepower required to crack the hash negates the profit. Over time your profit goes down, thanks for pointing out the obvious!

 

[Cliff Clavin]

www.bitminter.com is much better and easier to use.

The graphics card on my IBM machine must be crappy because I can only get ~1.5 Mhps whereas on my iMac I get ~56Mhps. My MBP only gets ~6Mhps.

All of it is laughable though. At ~56Mhp, your expected Bitcoin yield/day is 0.0037 which is worth about $0.26. 1 Bitcoin is worth about $70.

The money is made by the guys taking little pieces from everyone and will be made by the exchanges IMO. That's assuming Bitcoin doesn't implode.

With my 7970 I was getting between 500-600 MHash/s and the payout was about $2.83 overnight. I stopped running it though since I didn't want to burn out my card.There's definitely potential for money to be made as the hardware technology improves in the near future.

As more coins are mined, the algorithms become harder taking away any gains that your technology makes.

Show me the math.

I'll pass on the math thanks. The system is designed to make it more difficult for coins to be mined as more are produced. Basic logic then tell us that as technology advances, so will the number of coins being mined and so the algorithms will get tougher. Provided that the system was setup properly, mining speeds should stay fairly linear with hardware speeds. And in a year or two when there are tens of thousands of more people mining them, productions rates will most likely fall.But hey, knock yourself out. Might want to give this a read.

The Butterfly site already linked in this thread and mentioned in your article sells a 1500GHz/s system (is shipping end of this month). The math is really not that difficult for you to understand that your statement:

<blockquote>

>As more coins are mined, the algorithms become harder taking away any gains that your technology makes.<

>/span>

does not hold water. Hell even do the math on the 50 GH/s going for $2500, I already told you what the return on my 500MH/s video card was ($2.83/day). If you really need help, the yield of 50 GH/s compared to 500 MH/s is 100:1.

Way to miss point.

Yes, if you jack up all your hardware, you will see an increase in production. As time wears on, you are going to be producing less and less with that same equipment; not the same, not more. So you go buy some fancy new gear to get back to what you were previously producing. Rinse, repeat.

Keep running your card that is making $2.63 a night and watch how you gradually produce less and less each night.

But you said all gains would be taken away? That's not true, in 1 month you regain the cost of the hardware upgrade, everything after that is gravy, who cares if your profit goes down over time, you are playing with house money. You make it sound like it is impossible to make any money since the horsepower required to crack the hash negates the profit. Over time your profit goes down, thanks for pointing out the obvious!

 

[Jojo the circus boy]

This is what you objected to and now you are pulling a 180.

There's definitely potential for money to be made as the hardware technology improves in the near future.

 

[Cliff Clavin]

This is what you objected to and now you are making a 180.

>There's definitely potential for money to be made as the hardware technology improves in the near future.

 

[Jojo the circus boy]

This is what you objected to and now you are making a 180.

>There's definitely potential for money to be made as the hardware technology improves in the near future.

trong>

Fixed that for you

 

[Whitetail Hunter]

From the article:

The Butterfly Labs BitForce Mini Rig SC, a 1,500 GHz/s machine. It's about 30 times more powerful than then current Avalon ASICs, or would be if it ever exists; its shipdate continues to be delayed. With every passing month, that higher hashrate becomes less and less of an advantage, especially considering the machine's unlisted but doubtless obscene pricetag.

Bitcoin has always favored early adopters, bold ones especially. Because mining difficulty increases to compensate for increased power, all advantages are temporary. But it doesn't increase dynamically. Instead it hops up once every 14 days, so advantages can be leveraged. The first Avalon ASIC to be put to use paid for itself in a mere nine days, but every additional unit follows will have more and more ground to make up.

 

[moderated]

too late to the game to really make much money at all, especially calculating in the electricity needed to make anything worthwhile.

 

[Whitetail Hunter]

too late to the game to really make much money at all, especially calculating in the electricity needed to make anything worthwhile.

Right. Like I said above, a cursory investigation tells me the easy money in mining is gone.

Now you have to decide if they're a buy or sell at $70.

 

[Jojo the circus boy]

From the article:

The Butterfly Labs BitForce Mini Rig SC, a 1,500 GHz/s machine. It's about 30 times more powerful than then current Avalon ASICs, or would be if it ever exists; its shipdate continues to be delayed. With every passing month, that higher hashrate becomes less and less of an advantage, especially considering the machine's unlisted but doubtless obscene pricetag.

Bitcoin has always favored early adopters, bold ones especially. Because mining difficulty increases to compensate for increased power, all advantages are temporary. But it doesn't increase dynamically. Instead it hops up once every 14 days, so advantages can be leveraged. The first Avalon ASIC to be put to use paid for itself in a mere nine days, but every additional unit follows will have more and more ground to make up.

Yep I figured it would take about 10 days for the 50 GHz/s to make up the cost of the unit, the big problem is butterfly's ship estimates are anywhere from 3-6 months so you have that to contend with. Hey if making money was easy everyone would be doing it.

The difficulty would have to hop-up 100-fold every 14 days to negate the advantage in this first major bump in technology.

 

[Whitetail Hunter]

From the article:

The Butterfly Labs BitForce Mini Rig SC, a 1,500 GHz/s machine. It's about 30 times more powerful than then current Avalon ASICs, or would be if it ever exists; its shipdate continues to be delayed. With every passing month, that higher hashrate becomes less and less of an advantage, especially considering the machine's unlisted but doubtless obscene pricetag.

Bitcoin has always favored early adopters, bold ones especially. Because mining difficulty increases to compensate for increased power, all advantages are temporary. But it doesn't increase dynamically. Instead it hops up once every 14 days, so advantages can be leveraged. The first Avalon ASIC to be put to use paid for itself in a mere nine days, but every additional unit follows will have more and more ground to make up.

Yep I figured it would take about 10 days for the 50 GHz/s to make up the cost of the unit, the big problem is butterfly's ship estimates are anywhere from 3-6 months so you have that to contend with. Hey if making money was easy everyone would be doing it.

It would have to hop-up 100-fold every 14 days to negate the advantage in this first major bump in technology.

I will be astounded if you make up the cost of the unit in 10 days (meaning you'd roughly have to earn $250/day).

How many units are out there approximately? Any idea how many come online every day or week?

Why wouldn't the manufacturer simply keep the units and use them himself if they're so profitable?

 

[Jojo the circus boy]

From the article:

The Butterfly Labs BitForce Mini Rig SC, a 1,500 GHz/s machine. It's about 30 times more powerful than then current Avalon ASICs, or would be if it ever exists; its shipdate continues to be delayed. With every passing month, that higher hashrate becomes less and less of an advantage, especially considering the machine's unlisted but doubtless obscene pricetag.

Bitcoin has always favored early adopters, bold ones especially. Because mining difficulty increases to compensate for increased power, all advantages are temporary. But it doesn't increase dynamically. Instead it hops up once every 14 days, so advantages can be leveraged. The first Avalon ASIC to be put to use paid for itself in a mere nine days, but every additional unit follows will have more and more ground to make up.

Yep I figured it would take about 10 days for the 50 GHz/s to make up the cost of the unit, the big problem is butterfly's ship estimates are anywhere from 3-6 months so you have that to contend with. Hey if making money was easy everyone would be doing it.

It would have to hop-up 100-fold every 14 days to negate the advantage in this first major bump in technology.

I will be astounded if you make up the cost of the unit in 10 days (meaning you'd roughly have to earn $250/day).

How many units are out there approximately? Any idea how many come online every day or week?

Why wouldn't the manufacturer simply keep the units and use them himself if they're so profitable?

Maybe that's why the $30k Mini Rig SC is "sold out" right now.

There could be more risk-free money to be made selling the hardware without having to worry about the value of a speculative currency that you do not instantly obtain by making the hardware? Nobody said it isn't a gamble.

 

[Kool-Aid Larry]

From the article:

The Butterfly Labs BitForce Mini Rig SC, a 1,500 GHz/s machine. It's about 30 times more powerful than then current Avalon ASICs, or would be if it ever exists; its shipdate continues to be delayed. With every passing month, that higher hashrate becomes less and less of an advantage, especially considering the machine's unlisted but doubtless obscene pricetag.

Bitcoin has always favored early adopters, bold ones especially. Because mining difficulty increases to compensate for increased power, all advantages are temporary. But it doesn't increase dynamically. Instead it hops up once every 14 days, so advantages can be leveraged. The first Avalon ASIC to be put to use paid for itself in a mere nine days, but every additional unit follows will have more and more ground to make up.

Yep I figured it would take about 10 days for the 50 GHz/s to make up the cost of the unit, the big problem is butterfly's ship estimates are anywhere from 3-6 months so you have that to contend with. Hey if making money was easy everyone would be doing it.It would have to hop-up 100-fold every 14 days to negate the advantage in this first major bump in technology.

I will be astounded if you make up the cost of the unit in 10 days (meaning you'd roughly have to earn $250/day).

How many units are out there approximately? Any idea how many come online every day or week?

Why wouldn't the manufacturer simply keep the units and use them himself if they're so profitable?

I'm pretty sure we had this discussion in the other bitcoin thread.

btw, here is the avalon unit that is currently shipping.(sans ps)

hashrate: greater than 63 Gh/s speed guaranteed.

power consumption: ~ 600w @ 120v AC

From: ฿72.36 = ~$5k at time of posting

the mfr might very well be using a unit(s) to mine bitcoins as we speak, but selling them would be a much safer way to make money, as the bc production will inevitably drop off as a dozen other companies flood the market with even faster machines, and there is no guarantee bitcoins will even be worth a dollar next year.

what was the bitcoin exchange rate to arrive at the 3 bux/day figure?

if it was the current price, and that price holds up, I'd guess you could pay for the avalon unit in ~2 weeks.

the question really becomes the price of bitcoins going fwd.

to take it a little further -- I just mentioned that the price of this unit was roughly equal to 2 weeks of bc mining time, and one article mentioned a few hundred had been sold.

which would you rather do, if you were that guy --- mfr hundreds of these things to mine bitcoins for 2 weeks, then sit on hundreds of obsolete units, or mfr hundreds of units and sell them for the bc, letting your customers sit on obsolete units?

 

[McGarnicle]

Here's what I'm curious about -- right now Silk Road is the main avenue where bitcoins are accepted as currency, right? And supposedly you can buy everything from handjobs to sacks of heroin on there? So, what is the exchange rate of dollars to bitcoins and are the prices about right for these items if one were to procure them from a local provider? And even if the answer is yes, considering you are buying something illegal, I'm guessing there is not something like Square Trade or Ebay's buyer protection on Silk Road, so any sketchball can get on there and rip you off and there is no recourse? I really don't understand how this can be a viable enterprise.

 

[Whitetail Hunter]

http://www.economist.com/news/finance-and-economics/21576149-even-if-it-crashes-bitcoin-may-make-dent-financial-world-mining-digital?fsrc=scn/tw/te/pe/miningdigitalgold

Great article in the Economist about Bitcoin.

 

[Kool-Aid Larry]

Here's what I'm curious about -- right now Silk Road is the main avenue where bitcoins are accepted as currency, right? And supposedly you can buy everything from handjobs to sacks of heroin on there? So, what is the exchange rate of dollars to bitcoins and are the prices about right for these items if one were to procure them from a local provider? And even if the answer is yes, considering you are buying something illegal, I'm guessing there is not something like Square Trade or Ebay's buyer protection on Silk Road, so any sketchball can get on there and rip you off and there is no recourse? I really don't understand how this can be a viable enterprise.

bitcoins, or illegal ####?

 

[McGarnicle]

And another thing -- PayPal works really well and it's trustworthy and it's linked to your bank account and it uses actual currency. Why would I use bitcoins unless I wanted to buy some illegal drugs or a handjob? Why would I maintain a virtual wallet with this virtual currency that could fluctuate wildly because it's not based on anything real? It's a bunch of crap. You people need to get real. Also I'm drunk but I'd feel this way anyway.

 

[Kool-Aid Larry]

http://www.economist.com/news/finance-and-economics/21576149-even-if-it-crashes-bitcoin-may-make-dent-financial-world-mining-digital?fsrc=scn/tw/te/pe/miningdigitalgold

Great article in the Economist about Bitcoin.

yeah, and litecoins are just one of many.

early in the thread I commented that people should have really just bought in at 7 cents/bc, which I guess one guy took particular offense to, but as you can see, there are quite a few virtual currencies that may be the bc of tomorrow going for 7 cents today.

I think it's a legit question as to the timing of jumping on the bc bandwagon.

 

[Kool-Aid Larry]

And another thing -- PayPal works really well and it's trustworthy and it's linked to your bank account and it uses actual currency. Why would I use bitcoins unless I wanted to buy some illegal drugs or a handjob? Why would I maintain a virtual wallet with this virtual currency that could fluctuate wildly because it's not based on anything real? It's a bunch of crap. You people need to get real. Also I'm drunk but I'd feel this way anyway.

I think the question you're asking is basically why are paris hilton and kim kardashian celebrities.

well, you might not like it, but somehow they are.

it's entirely possible that bitcoins might just be a beanie baby bubble, but it's also possible they're the earliest high profile inroad towards virtual currency.

unless you count wow gold, or stuff like that, but that's a bit different.

 

[Jojo the circus boy]

Here's what I'm curious about -- right now Silk Road is the main avenue where bitcoins are accepted as currency, right? And supposedly you can buy everything from handjobs to sacks of heroin on there? So, what is the exchange rate of dollars to bitcoins and are the prices about right for these items if one were to procure them from a local provider? And even if the answer is yes, considering you are buying something illegal, I'm guessing there is not something like Square Trade or Ebay's buyer protection on Silk Road, so any sketchball can get on there and rip you off and there is no recourse? I really don't understand how this can be a viable enterprise.

You don't understand how Silk Road works.

And another thing -- PayPal works really well and it's trustworthy and it's linked to your bank account and it uses actual currency. Why would I use bitcoins unless I wanted to buy some illegal drugs or a handjob? Why would I maintain a virtual wallet with this virtual currency that could fluctuate wildly because it's not based on anything real? It's a bunch of crap. You people need to get real. Also I'm drunk but I'd feel this way anyway.

Keep using PayPal, nobody is forcing you to use BitCoins.

 

[Jojo the circus boy]

Well, no business or nation could handle blowing up overnight. But as long as merchants can save 5% on sales using bitcoin vs plastic cards, they will continue to adopt it.

The 5% comes from avoiding credit card fraud, chargebacks, and bank fees from using cards. If your profit margin is normally 5%, saving 5% on costs would double your profits, which is a heck of an incentive. Using bitcoin has it's own overhead costs, of course, but they have the potential to be a lot lower.

 

[McGarnicle]

And another thing -- PayPal works really well and it's trustworthy and it's linked to your bank account and it uses actual currency. Why would I use bitcoins unless I wanted to buy some illegal drugs or a handjob? Why would I maintain a virtual wallet with this virtual currency that could fluctuate wildly because it's not based on anything real? It's a bunch of crap. You people need to get real. Also I'm drunk but I'd feel this way anyway.

I think the question you're asking is basically why are paris hilton and kim kardashian celebrities.

well, you might not like it, but somehow they are.

it's entirely possible that bitcoins might just be a beanie baby bubble, but it's also possible they're the earliest high profile inroad towards virtual currency.

unless you count wow gold, or stuff like that, but that's a bit different.

I just can't see being an early adopter of this until they work out the kinks, at least not on any kind of large scale. Interesting that some legit vendors are starting to accept bitcoins, but I don't see any benefit to me as a consumer when my credit cards and PayPal account work just fine and have been proven secure for hundreds if not thousands of transactions since I started buying things online.

 

[McGarnicle]

Here's what I'm curious about -- right now Silk Road is the main avenue where bitcoins are accepted as currency, right? And supposedly you can buy everything from handjobs to sacks of heroin on there? So, what is the exchange rate of dollars to bitcoins and are the prices about right for these items if one were to procure them from a local provider? And even if the answer is yes, considering you are buying something illegal, I'm guessing there is not something like Square Trade or Ebay's buyer protection on Silk Road, so any sketchball can get on there and rip you off and there is no recourse? I really don't understand how this can be a viable enterprise.

You don't understand how Silk Road works.

Clearly. I bought a handjob like three weeks ago and I gave her my address six times.

 

[Whitetail Hunter]

Well, no business or nation could handle blowing up overnight. But as long as merchants can save 5% on sales using bitcoin vs plastic cards, they will continue to adopt it.

The 5% comes from avoiding credit card fraud, chargebacks, and bank fees from using cards. If your profit margin is normally 5%, saving 5% on costs would double your profits, which is a heck of an incentive. Using bitcoin has it's own overhead costs, of course, but they have the potential to be a lot lower.

5% is a drop in the bucket compared to the volatility Bitcoin has been experiencing. Bid/Ask spread is over $10 i.e 70/80 and it moves $10 or more every hour.

 

[Jojo the circus boy]

Well, no business or nation could handle blowing up overnight. But as long as merchants can save 5% on sales using bitcoin vs plastic cards, they will continue to adopt it.

The 5% comes from avoiding credit card fraud, chargebacks, and bank fees from using cards. If your profit margin is normally 5%, saving 5% on costs would double your profits, which is a heck of an incentive. Using bitcoin has it's own overhead costs, of course, but they have the potential to be a lot lower.

5% is a drop in the bucket compared to the volatility Bitcoin has been experiencing. Bid/Ask spread is over $10 i.e 70/80 and it moves $10 or more every hour.

bid/ask is less than a $1 stop spreading FUD

too volatile for you? Don't use it. Amazing how angry people are at bitcoin.

 

[Kool-Aid Larry]

Well, no business or nation could handle blowing up overnight. But as long as merchants can save 5% on sales using bitcoin vs plastic cards, they will continue to adopt it.

The 5% comes from avoiding credit card fraud, chargebacks, and bank fees from using cards. If your profit margin is normally 5%, saving 5% on costs would double your profits, which is a heck of an incentive. Using bitcoin has it's own overhead costs, of course, but they have the potential to be a lot lower.

5% is a drop in the bucket compared to the volatility Bitcoin has been experiencing. Bid/Ask spread is over $10 i.e 70/80 and it moves $10 or more every hour.

bid/ask is less than a $1 stop spreading FUD

too volatile for you? Don't use it. Amazing how angry people are at bitcoin.

well, you seem to be reading into a lot of posts ---- weren't you the guy pissed when I mentioned 7 cents early in the thread?

when you say

But as long as merchants can save 5% on sales using bitcoin vs plastic cards, they will continue to adopt it.

which mainstream merchants are currently adopting it, so that they can 'continue'?

 

[Jojo the circus boy]

Economist Pete Surda explains why Litecoin and other Bitcoin competitors may not be able to compete long-term

 

[Jojo the circus boy]

Well, no business or nation could handle blowing up overnight. But as long as merchants can save 5% on sales using bitcoin vs plastic cards, they will continue to adopt it.

The 5% comes from avoiding credit card fraud, chargebacks, and bank fees from using cards. If your profit margin is normally 5%, saving 5% on costs would double your profits, which is a heck of an incentive. Using bitcoin has it's own overhead costs, of course, but they have the potential to be a lot lower.

5% is a drop in the bucket compared to the volatility Bitcoin has been experiencing. Bid/Ask spread is over $10 i.e 70/80 and it moves $10 or more every hour.

bid/ask is less than a $1 stop spreading FUD

too volatile for you? Don't use it. Amazing how angry people are at bitcoin.

well, you seem to be reading into a lot of posts ---- weren't you the guy pissed when I mentioned 7 cents early in the thread?

when you say

>But as long as merchants can save 5% on sales using bitcoin vs plastic cards, they will continue to adopt it.

which mainstream merchants are currently adopting it, so that they can 'continue'?

What you posted was "WATER IS WET" and I called you out on it, you said people should have bought bitcoin when it was 7 cents, it was not one of your brightest moments.

 

[Whitetail Hunter]

Well, no business or nation could handle blowing up overnight. But as long as merchants can save 5% on sales using bitcoin vs plastic cards, they will continue to adopt it.

The 5% comes from avoiding credit card fraud, chargebacks, and bank fees from using cards. If your profit margin is normally 5%, saving 5% on costs would double your profits, which is a heck of an incentive. Using bitcoin has it's own overhead costs, of course, but they have the potential to be a lot lower.

5% is a drop in the bucket compared to the volatility Bitcoin has been experiencing. Bid/Ask spread is over $10 i.e 70/80 and it moves $10 or more every hour.

bid/ask is less than a $1 stop spreading FUD

too volatile for you? Don't use it. Amazing how angry people are at bitcoin.

Huh?

Just quoting a tweet:

BitcoinWatch ‏@BitcoinWatch5h
Current BTC value: USD: 79.49/91.71, EUR: 62.06/71.31, GBP: 54.49/62.89, CHF: 72.14/84.77, SLL: 20603/23396 http://bit.ly/Bitcoin #bitcoin


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[Jojo the circus boy]

Well, no business or nation could handle blowing up overnight. But as long as merchants can save 5% on sales using bitcoin vs plastic cards, they will continue to adopt it.

The 5% comes from avoiding credit card fraud, chargebacks, and bank fees from using cards. If your profit margin is normally 5%, saving 5% on costs would double your profits, which is a heck of an incentive. Using bitcoin has it's own overhead costs, of course, but they have the potential to be a lot lower.

5% is a drop in the bucket compared to the volatility Bitcoin has been experiencing. Bid/Ask spread is over $10 i.e 70/80 and it moves $10 or more every hour.

bid/ask is less than a $1 stop spreading FUD

too volatile for you? Don't use it. Amazing how angry people are at bitcoin.

Huh?

Just quoting a tweet:

BitcoinWatch ‏@BitcoinWatch5h
Current BTC value: USD: 79.49/91.71, EUR: 62.06/71.31, GBP: 54.49/62.89, CHF: 72.14/84.77, SLL: 20603/23396 http://bit.ly/Bitcoin #bitcoin


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https://mtgox.com/

 

[Whitetail Hunter]

I've signed up for a Mt. Gox account.

I will try to fund it in the next couple days and mess around with Bitcoin trading.

Anyone know if you can short and then cover later that day?

 

[Whitetail Hunter]

Your wallet:

0.00000000 BTC
[*]P $0.00000

Your Position in the Verification Queue 28940

 

[Maelstrom]

For most consumers, particularly after accounting for the electricity used to run a couple of GPUs all night, bitcoin mining is not a generally profitable enterprise.

 

[Whitetail Hunter]

For most consumers, particularly after accounting for the electricity used to run a couple of GPUs all night, bitcoin mining is not a generally profitable enterprise.

yes

easy money's been made

 

[grateful zed]

i remember when magic the gathering pulled this sort of thing.

 

[pittstownkiller]

i remember when magic the gathering pulled this sort of thing.

Yeah, this has a feel to it like the run up in sports card collecting, or better yet cereal/lunch box collecting.

 

[Jojo the circus boy]

For most consumers, particularly after accounting for the electricity used to run a couple of GPUs all night, bitcoin mining is not a generally profitable enterprise.

Depends where you live.

http://www.electricchoice.com/electricity-prices-by-state.php

plus I assume the ASIC's would return significantly more bitcoins per KWh which is what we were discussing.

System idle for a 7970 = 270 Watts

System mining for a 7970 = 388 Watts

# of hours in a month (30 days) = 720

Excess # of KWh used over 30 days = 85

$0.112 per KWh = $9.52

Approximate return on mining for 30 days straight = $85.5

Profit = $75.98

% cut taken out for electricity = 11%

I'm sure the ASIC's efficiency make the electrical costs a non-factor.

Simplified math: by mining you are making $1 per KWh and paying the electric company $0.11 for that KWh.

 

[grateful zed]

i remember when magic the gathering pulled this sort of thing.

Yeah, this has a feel to it like the run up in sports card collecting, or better yet cereal/lunch box collecting.

or wacky packages.

 

[Maelstrom]

For most consumers, particularly after accounting for the electricity used to run a couple of GPUs all night, bitcoin mining is not a generally profitable enterprise.

Depends where you live.

http://www.electricchoice.com/electricity-prices-by-state.php

plus I assume the ASIC's would return significantly more bitcoins per KWh which is what we were discussing.

System idle for a 7970 = 270 Watts

System mining for a 7970 = 388 Watts

# of hours in a month (30 days) = 720

Excess # of KWh used over 30 days = 85

$0.112 per KWh = $9.52

Approximate return on mining for 30 days straight = $85.5

Profit = $75.98

% cut taken out for electricity = 11%

I'm sure the ASIC's efficiency make the electrical costs a non-factor.

Simplified math: by mining you are making $1 per KWh and paying the electric company $0.11 for that KWh.

Slightly more realistic:

System OFF for a 7970 = 0 Watts

System mining for a 7970 = 388 Watts

Excess over 30 days = (given 5 hours of computer use each day) = 221KWh

$0.112 per KWh = $24.76

Approximate return on mining for 30 days straight = $85.5

Profit = $60.74

% cut taken out for electricity = 29%

Still - a little better than I thought it would be, but that said, it goes down each month as the mining gets progressively harder. And it's $60/month (or less.) Even if we use the $85/month, it's still $85/month. We've probably wasted more "money" on this thread (I mean, FBG salaries and all, etc.)

Here is a BitCoin calculator (sorta preloaded with 7970 numbers)

http://tpbitcalc.appspot.com/?difficulty=7672999.9202&hashrate=825.00&exchangerate=65.18&bitcoinsperblock=25.00&rigcost=0&powerconsumption=215.00&powercost=0.112&investmentperiod=30

 

[Whitetail Hunter]

i remember when magic the gathering pulled this sort of thing.

Yeah, this has a feel to it like the run up in sports card collecting, or better yet cereal/lunch box collecting.

Not even close to either.

 

[Jojo the circus boy]

For most consumers, particularly after accounting for the electricity used to run a couple of GPUs all night, bitcoin mining is not a generally profitable enterprise.

Depends where you live.

http://www.electricchoice.com/electricity-prices-by-state.php

plus I assume the ASIC's would return significantly more bitcoins per KWh which is what we were discussing.

System idle for a 7970 = 270 Watts

System mining for a 7970 = 388 Watts

# of hours in a month (30 days) = 720

Excess # of KWh used over 30 days = 85

$0.112 per KWh = $9.52

Approximate return on mining for 30 days straight = $85.5

Profit = $75.98

% cut taken out for electricity = 11%

I'm sure the ASIC's efficiency make the electrical costs a non-factor.

Simplified math: by mining you are making $1 per KWh and paying the electric company $0.11 for that KWh.

Slightly more realistic:

System OFF for a 7970 = 0 Watts

System mining for a 7970 = 388 Watts

Excess over 30 days = (given 5 hours of computer use each day) = 221KWh

$0.112 per KWh = $24.76

Approximate return on mining for 30 days straight = $85.5

Profit = $60.74

% cut taken out for electricity = 29%

Still - a little better than I thought it would be, but that said, it goes down each month as the mining gets progressively harder. And it's $60/month (or less.) Even if we use the $85/month, it's still $85/month. We've probably wasted more "money" on this thread (I mean, FBG salaries and all, etc.)

Here is a BitCoin calculator (sorta preloaded with 7970 numbers)

http://tpbitcalc.appspot.com/?difficulty=7672999.9202&hashrate=825.00&exchangerate=65.18&bitcoinsperblock=25.00&rigcost=0&powerconsumption=215.00&powercost=0.112&investmentperiod=30

For some, although I run my system 24x5 to collect financial data and it is running most hours on Sat/Sun.

 

[CBusAlex]

It'll be interesting to see how close the bitcoin threads track to this one.

 

[Jojo the circus boy]

the late adopters will get a kick out of this:

http://www.colbertnation.com/the-colbert-report-videos/425561/april-17-2013/bitcoin-plunge

 

[Jojo the circus boy]

Money Gram and Western Union eyeing Bitcoin

 

[AAABatteries]

I'm apparently too stupid to understand how this works so I'll just back out slowly now.

 

[GTBilly]

Not sure if it has been posted but what is your computer doing when it is mining?(Solving an algorithm is what I believe I read but WHY?) More importantly who is gaining from this computer usage?

 

[Kool-Aid Larry]

Not sure if it has been posted but what is your computer doing when it is mining?(Solving an algorithm is what I believe I read but WHY?) More importantly who is gaining from this computer usage?

lolz

 

[Jojo the circus boy]

DDOS attacks against Mt.Gox becoming less effective

 

[dparker713]

WTF does this mean:

If you have OpenCL set up correctly this should launch the GUI. If you get an error about OpenCL, you need to install an OpenCL package from your GPU vendor. For AMD/ATI cards you can get OpenCL here.

Install latest drivers, when I tried installing it on my laptop which I bought a few years ago with 2x 5870m cards I had to install latest drivers for the software to recognize it.

I made $2.85 (USD equivalent) last night on my 7970 cards with a throughput of 500-600 MHash/s

I am doing this more as an experiment right now, seeing if it is worth it to invest in some hardware.

5870 card requires 2 75W cords. A 797 requires a 150W cord and a recommended 75W cord, so we'll use 225W here.. Its unlikely the card was drawing a full power load the whole time, but you also need to account for the power to keep the CPU running, so lets just use the above wattages as the rough draw. Depending on where you live, time of year, time of day, power costs are highly variable, but lets say it averages to 20 cents per kW-hr. If you ran the GPU for 12 hours the cost in energy was roughly 54 cents. So, a profit of roughly $2.31 last night. This is irrespective of the depreciation cost to the computer and the card from continuous high load operation. A 7970 card retails for well above $300 (many over $400). So, you'd need to run for nearly 130 nights to cover the cost of one card.

Also, you need to consider the likely future behavior of the costs involved. Will the inflation of bitcoins outstrip both the inflation of energy costs and the exponential computing requirements? While possible, I'd guess its unlikely.

 

[Jojo the circus boy]

WTF does this mean:

If you have OpenCL set up correctly this should launch the GUI. If you get an error about OpenCL, you need to install an OpenCL package from your GPU vendor. For AMD/ATI cards you can get OpenCL here.

Install latest drivers, when I tried installing it on my laptop which I bought a few years ago with 2x 5870m cards I had to install latest drivers for the software to recognize it.

I made $2.85 (USD equivalent) last night on my 7970 cards with a throughput of 500-600 MHash/s

I am doing this more as an experiment right now, seeing if it is worth it to invest in some hardware.

5870 card requires 2 75W cords. A 797 requires a 150W cord and a recommended 75W cord, so we'll use 225W here.. Its unlikely the card was drawing a full power load the whole time, but you also need to account for the power to keep the CPU running, so lets just use the above wattages as the rough draw. Depending on where you live, time of year, time of day, power costs are highly variable, but lets say it averages to 20 cents per kW-hr. If you ran the GPU for 12 hours the cost in energy was roughly 54 cents. So, a profit of roughly $2.31 last night. This is irrespective of the depreciation cost to the computer and the card from continuous high load operation. A 7970 card retails for well above $300 (many over $400). So, you'd need to run for nearly 130 nights to cover the cost of one card.

Also, you need to consider the likely future behavior of the costs involved. Will the inflation of bitcoins outstrip both the inflation of energy costs and the exponential computing requirements? While possible, I'd guess its unlikely.

Great.

Now multiply profit 100x and do the calculation again for a 50GH/s yield. Unit costs $2500.

 

[dparker713]

WTF does this mean:

If you have OpenCL set up correctly this should launch the GUI. If you get an error about OpenCL, you need to install an OpenCL package from your GPU vendor. For AMD/ATI cards you can get OpenCL here.

Install latest drivers, when I tried installing it on my laptop which I bought a few years ago with 2x 5870m cards I had to install latest drivers for the software to recognize it.

I made $2.85 (USD equivalent) last night on my 7970 cards with a throughput of 500-600 MHash/s

I am doing this more as an experiment right now, seeing if it is worth it to invest in some hardware.

5870 card requires 2 75W cords. A 797 requires a 150W cord and a recommended 75W cord, so we'll use 225W here.. Its unlikely the card was drawing a full power load the whole time, but you also need to account for the power to keep the CPU running, so lets just use the above wattages as the rough draw. Depending on where you live, time of year, time of day, power costs are highly variable, but lets say it averages to 20 cents per kW-hr. If you ran the GPU for 12 hours the cost in energy was roughly 54 cents. So, a profit of roughly $2.31 last night. This is irrespective of the depreciation cost to the computer and the card from continuous high load operation. A 7970 card retails for well above $300 (many over $400). So, you'd need to run for nearly 130 nights to cover the cost of one card.

Also, you need to consider the likely future behavior of the costs involved. Will the inflation of bitcoins outstrip both the inflation of energy costs and the exponential computing requirements? While possible, I'd guess its unlikely.

Great.

Now multiply profit 100x and do the calculation again for a 50GH/s yield. Unit costs $2500.

Would you need a dedicated internet connection for that? What about additional air conditioning? Was your one night's profit typical or atypical? If you think you can make $250 a day, you should do it in a heartbeat, but just remember to pay your taxes quarterly.