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So over the last 2 months I have gotten pretty heavily involved in CC mining. Ethereum and a few other altcoins. Just curios, is anyone else venturing down this road? I paid a hefty fee to get into the mining side ($6000 give or take) but my 4-6 card rigs are now producing $1150 a month after power taken out (about $60 a rig). After the initial investment and waiting 6-8 months to pay back all the debt it looks to be pretty profitable. Just looking to see if our community has a niche' of fellow miners to talk about such things.

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I'm not a miner, but I work at a store that sells graphics cards and miners have become quite a large thorn in our side.

Between draining our inventories and severely limiting the options for our other customers, and now trying to circumvent the inventory control policies put in place it's just a goddamn nightmare.

Granted, I still want to get into it. Seems like a nice way to make money provided the cryptocurrency market doesn't bubble and crash.

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I heard about it years ago but never got involved really until like a 2 years ago when I had gotten like 2 coins for 400 bucks in an online transaction. Sold them for 500 and I thought I did awesome for profit.... Then last month I saw that the price was at like 2800 per coin.... that hurt and I saw the potential so got invested. I will say though that the bubble and crash happened last month with ethereum skyrocketing and now settling out at around 200. I can imagine the hype at a store though. I was trying to go SLI for my gaming pc and couldn't find any 1070's except for at prices that were often near double msrp. If you do get involved though, most people are mining Ether and run the AMD 4xx/5xx cards, I would stay away as the next difficulty jump coming up will cut their mining speeds nearly in half while the gtx cards remain relatively unaffected as long as its a 6 or 8gb cards.

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All I know is that its wizardry. How the hell can currency be made out of nowhere? I'm probably one of the unwashed who still think its sheer madness to not have a stable thing backing up the value of the currency.

That said, I would love to make money out of nowhere as well, but I'm not that interested to get motivated to invest in making it a reality for myself.

There was a recent podcast from Radiolab that discussed the 'ceremony' proceeding the launch of ZCash. It was weird and strange and odd (also, I have no idea how these people don't understand the concept of phone security)

http://www.radiolab.org/story/ceremony/

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Wizardry or not, real or not, it turns into real money in my bank account and that's all that matters lol. The idea of selling literally nothing for real usd is kind of crazy when looking at it from the standard point of view. But since seeing this I have come to appreciate the idea of a global currency that no country actually controls or backs. It prevents the depression we just saw a while back. No matter what the Euro, Yen, or USD does they stay independent. But that's just my thought. either way I am selling code my computer makes and buying ships with it.... although... those are also just code.... damnit

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@Th3 Warm0ng3r SLI is almost useless in gaming PCs. Well over 95% of games don't support it and the industry as a whole is sticking with building games around single-GPU machines since that's what most people have. It's infinitely more useful for graphic design, 3D modeling, and physics rendering which can actually utilize the hardware acceleration to a noticeable degree.

 

As for how you turn it into real money, you're leasing your processing power in exchange for the coins, and people buy the coins for real money. Not exactly complicated but it is incredibly abstract, hence most people being confused about it.

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51 minutes ago, Th3 Warm0ng3r said:

Wizardry or not, real or not, it turns into real money in my bank account and that's all that matters lol. The idea of selling literally nothing for real usd is kind of crazy when looking at it from the standard point of view. But since seeing this I have come to appreciate the idea of a global currency that no country actually controls or backs. It prevents the depression we just saw a while back. No matter what the Euro, Yen, or USD does they stay independent. But that's just my thought. either way I am selling code my computer makes and buying ships with it.... although... those are also just code.... damnit

Right, but there are downsides. Haven't some currencies been hacked? True, they're not controlled by governments, but they're also exposed to pure market forces which can cause disastrous hiccups.

I suppose though, its complex enough that most lay people won't catch onto it for perhaps another generation or so, and by then most of the bugs will have been worked out. Then the difficulty is getting people to accept them for value.

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1 minute ago, FoxChard said:

Right, but there are downsides. Haven't some currencies been hacked? True, they're not controlled by governments, but they're also exposed to pure market forces which can cause disastrous hiccups.

I suppose though, its complex enough that most lay people won't catch onto it for perhaps another generation or so, and by then most of the bugs will have been worked out. Then the difficulty is getting people to accept them for value.

Yes and no to the hacking, for the most part what you are hearing about are wallets where people are holding their coins that have been hacked like the most recent ethereum hack. the wallet had an exploit that allowed someone else to get in. As far as the coins themselves the blockchain technology is pretty much unhackable, not saying it isn't possible but its extremely hard as the technology uses everyone "mining" to confirm the transactions, in essence every miner has admin rights to the system and they all look at all the transactions that happen in an allotted time and in a block. Everyone says yep that's right and then it seals the block and adds it to the chain but you can still view all transactions in that block and the cycle repeats. The miners are paid by a lottery system where every time a block finishes there are so many new coins created and given to the miners for the power they add to the chain.

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3 hours ago, FoxChard said:

All I know is that its wizardry. How the hell can currency be made out of nowhere? I'm probably one of the unwashed who still think its sheer madness to not have a stable thing backing up the value of the currency.

That said, I would love to make money out of nowhere as well, but I'm not that interested to get motivated to invest in making it a reality for myself.

There was a recent podcast from Radiolab that discussed the 'ceremony' proceeding the launch of ZCash. It was weird and strange and odd (also, I have no idea how these people don't understand the concept of phone security)

http://www.radiolab.org/story/ceremony/

I agree here, personally I just don't understand it. Computer crunches a block of data, users awarded several coins which can then be used as real money but why?! It makes no sense, I mean maybe if the processing power was actually contributing to something useful like the Folding@Home system Stanford University setup to process advanced calculations for disease research using the combined power of personal computers in a global network but the cryptocoin stuff is just nothing ....

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I thought that was the whole idea behind cryptocurrency is that people who need the processing power basically send algorithms and real money into the system and people with mining rigs sell their processing power and get coins out. And since there's a real currency value associated with the input, the output has real value too.

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39 minutes ago, LeroyJenkins said:

I thought that was the whole idea behind cryptocurrency is that people who need the processing power basically send algorithms and real money into the system and people with mining rigs sell their processing power and get coins out. And since there's a real currency value associated with the input, the output has real value too.

Is that how it work? Ive tried reading up on it but I guess it's over my head.

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51 minutes ago, Shootter said:

Is that how it work? Ive tried reading up on it but I guess it's over my head.

Sort of, the problem is in the conversion back to USD. See it actually looks like the companies have the best deal because they are creating their own coins to their workers while receiving real money from those using their blockchain system, whatever it does. So they are getting paid in actual USD and paying us in coins. The value of which is only really made by how much others will trade for it. To get it back to USD however there are only a few types of coins that markets will accept in paying you money so you have to use a crypto market exchange to change it to bitcoin and then either pull it out at a bitcoin ATM ( every city has them now even if you dont know just google it) or through bank transfers by a select few coin exchange markets.

The big problem for us in the US is that the government is actively against cryptocurrency as there is no real way to regulate and control it due to the dissemination at the core of the technology. So they have a lot of policies and regulations severely restricting exchanges that other countries dont deal with. You have to in essence create a real bank account with the exchanges here  in the states giving them all your info, SS number, Drivers liscence, photo id... etc... then be able to move serious amounts. In other countries its not the same. 

All in all it the system does have real money that the company makes but the coins are not created by their actual income, they are just made. No matter what the current cost of the the coin nor how well or poor the company is doing, or doing anything at all in some coins cases, the coins will still be generated by the block chain process at a set rate each round until the max determined limit is reached. Then they will never be produced again and it turns into a different system altogether for mining profit. 

1 hour ago, Shootter said:

 

As an example, a new currency coin just came out like 5 days ago called Signatum. I heard a rumor about it and jumped on it right away because the idea was just creating a coin that you could mine with out paying fee's to the developers (like 99% of all other coins you pay a 1-4% fee for mining their coin that they get back) as well as no transfer fee's to start with. It wasnt talked about but I figured it was worth a quick couple days of mining during the time when no one knows about it so you make a ton of coins quickly wining a lot of the lotteries. The company has no actually money out there, they just made the coin and programmed it as a new currency. 

One of my mining rigs makes about 13 bucks a day making about .05 of a coin of Ethereum which is about 200 a coin currently.  however i switched it to the new coin and overnight I made nearly 800 signatum. I transfered it to the exchange and traded them for bitcoin at a rate of 9 cents a coin, which means i just went to a place a traded another guy somewhere my coins for a fraction of his bitcoin. and then did a bank tranfer that came out to a little over 70 USD in my checking account. Not bad for about 8 hours worth of mining.

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As one of the newest style make money fast schemes it is working as intended for the time being.

However, there will be more and more national and international regulations and control forced onto this stuff as time goes by because of the nefarious potential of transactions that cannot be easily traced.

For exactly that reason I also see little hope of a government acceptance of this type of currency.

Don't get me wrong here. If you are making a buck doing this then happy trails, but do not expect Uncle Sam to recognize your efforts to print untraceable income.

Blame the bad guys. Too many money laundering, ransom and blackmail efforts have turned to bitcoin for an untraceable getaway. As long as it remains such (no paper trail), I see no hope of it becoming mainstream in non-criminal activities, except by those who have invested in it and would like to pluck the low hanging fruit for their efforts while they can.

Pure old school thinking, I know. Remember though, that I am the guy with a safe full of ammo. If the bottom does fall out of civilized living, ammo will be the barter item of choice, not gold, money (or bitcoin).

My 22 long rifle. - DRUM out

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Cryptocoin has a liquidity problem that I haven't seen explained well enough for me to get into it.  All of them suffer deflation, they get more valuable instead of less over time.  This means that you should never buy anything with cryptocoin, but you should always accept payment with it.  But as long as people accept payment in a currency that inflates instead of deflates, they have no incentive to pay you in cryptocoin.  This means that traditional currency has good liquidity and cryptocoins have poor liquidity.  It means that the only things bought with cryptocoins are those goods that people won't sell with traditional inflating currency, i.e. illegal goods.  This further depresses legitimate businesses from wanting to accept cryptocoins and contributes to no one using it, i.e. poor liquidity.

I can see investing "play money", money you won't miss, into cryptocoin to take advantage of the deflation.  But I'd probably rather do realworld work and just buy the coin on the open market whenever there's a downturn in prices (like recently).  Ironically the more the liquidity and deflation problem is solved, the more I'd want to get some, further raising its price.  I'm unconvinced this problem can be solved.

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@Gremlich That has since been scaled back a bit, they're not being quite as gung-ho about it (i.e. you can buy four RX580s if you get two ASUS and two MSI cards) so I don't really know why that hasn't just been removed altogether. I still notice at least a dozen miners a week coming through. Pretty frickin obvious when all you're buying is a pair of GPUs or a "gaming rig" with a pentium processor.

Personally I don't think we should have backed down on enforcement. Part of the problem however is that our software is from 1994 (our point-of-sale/inventory backend uses a 1994 distro of Red Hat Fedora). It's not exactly smart enough for us to track that shit on the fly so I think it just amounted to managers getting tired of micromanaging these miners.

The main reason they started doing that in the first place is because the company would rather sell full or partial builds with each of those cards instead of giving twenty individual cards to one person then having to tell other customers they don't have the GPU they wanted to buy. Long run we'd lose business and I think they implemented this policy when they started to notice that on the books.

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