Gee, it gets harder and harder to make bitcoins? No shit sherlock. And more people are learning that they can use bitcoins for anonymous online transactions? Think that makes demand go up? It does not matter that the production pace of bitcoins goes down in nominal terms if the demand for bitcoins also goes up. The dollars per day that one would earn is still dictated by supply and demand of bitcoins relative to your ability to create bitcoins relative to your cost to produce them. K, so someone has a pair of 6990s making 1300mash. Lets say someone has $1 million and that computer running 6990s is $1200. That pays for the hardware for 833 computers, making 1082900 mhash. http://www.alloscomp.com/bitcoin/calculator.php Plug in $20 per bitcoin... pretty common price lately. 1082900 mhash. Today, that comes to $38,395.32 per day. $279,965.85 per week. $1,167,217.63 per month. Month is more questionable. What will they cost in a month? Not sure. I am sure that you will have a giant fucking electric bill, but probably not $1 million worth. Now, lets see what kind of production is going on in the whole network? http://bitcoin.sipa.be/speed-lin.png At current prices, $1 million of hardware gives you 1/7th of the total production. So, yes, someone with $10-20 million CAN dominate the production of future bitcoins. They would need to come up with a setup that uses as much passive cooling as possible to keep their electric bill low and ideally be in a place with low electric rates. That would be their competitive advantage that allows them to produce at a lower cost than is economical for their competition.
What is all this talk of computational power? Is bit coins like SETI? So can you buy books at amazon with bit coins?
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I read the faq, and have closed all my trading accounts and will be investing solely in BitCoins from hence on.
LOL. I know you are being sarcastic. But, I just want to say for the record that I don't think anyone should do that. I don't think anyone should even put serious money into. It is cheaper than plane ticket and hotel stay for Vegas to start printing up some bitcoins or trade them. So if someone wants to play with them, then by all means, go for it. Definitely don't count on it for retirement!
I never even thought of this. I didn't take too hard a look at how they were "mining." But if people's computers are working on overload doing "something" ... Then that something needs to come to light before people agree. I suppose anyone who could build and run programs to mine, would intuitively know something was up.. But people who haven't got a clue like me should hear this guy out at least before we encourage this product, like I did earlier in this thread.. Or in other words.. yea that sounds shady as hell.
Hi fucktard, there is a limit of 2016 block generation (~100k btc coins) every 14 days. There are also at least 50,000+ bitcoin mining boxes running at any time. So your cut is <1% of the 100k coins with that 833 computers. In addition, the formula is self adjusting and increases difficulty every 2 weeks based on previous run. The next increase happens tomorrow, and it's a 40% gap up. That means if you made 100 btc last 14 days, with the same hardware you will only make ~70 btc, and after 2 more weeks, another 30%+ cut, assume constant miner count. That link you had ( http://bitcoin.sipa.be/speed-lin.png ), it's not the production of btc coin, the production is constant adjusted downwards based on the geometric series algo. That chart shows the difficulty increase over time, the faster the difficulty increases the less btc you can generate with the same hardware. It's a self regulating formula that caps the total btc that can ever be produced, and designed to be self defeating over time and forces the miners to be on a constant arms race on the hardware upgrades for smaller and smaller gains. More important if you throw 1 billion computers at it, you will still only make the cap of 2016 blocks every 2 weeks. All of this is not even counting the electricity cost (1kw per comp per hr), the rapid depreciation of your hardware cost - 6 months from now your $1million farm can be bought for $500k, and the data center cost to host the computers. Do you really think an imbecile like you can "dominate" the bitcoin production when many smarter people have tried and failed? Seriously just stop making a bigger ass of yourself and go back to mine your little bitcoins in the basement.