Crypto Currency Mining & Graphics Cards

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https://www.cryptsy.com/

I use them to convert any type of coin to BTC as I've experimented with LTC/FTC/DTC. Sold a bunch of DTC (dogecoin) when they were a bit higher than now. It's like playing hte stock market but you're only trading some money you made that it cost you in power instead of real money on the stock market. If you are casually doing it, oh no, you bought a couple of video cards, market falls through, you stop, you sli and play games on ultra. lol.
 
Can someone clarify my assumptions?:

Crypto currency was virtual in the beginning but as soon as people started to treat it as real currency (e.g. exchanging goods for bitcoins) it actually became a "real" currency.

Depending on what country you live in I assume that the profit of this crypto currency mining should actually be taxed (something I think most are forgetting).

Isn't a bubble burst inevitable here? I mean when the finite cap is reached for a crypto currency won't the currency just plummet to the ground when people cannot mine that currency anymore? If no ressources are no longer put into maintaining the currency's "value" what happens then? I don't see how the demand for this currency will hold in the long run.

I'm not saying it's not worth mining at the moment since it seems like a fairly good business but in my personal opinion it's too much effort and environmental waste just to earn 50$/month.

As I see it this kind of currency either goes two ways: Either it dies out at some point as people loses interest (Eg. no more value is added to the currency) or it will end up getting regulated by the respective governments.
 


Well there's nothing wrong with a bubble if you know when to pull out of the game 😉. The question is rather will a bubble completely destroy the crypto currency or just cripple it for a time as any other bubble.
 
It is a good question about what will happen to the price of bitcoins (specifically, as they are the most valued currently and the ones with a set limit) once they are all mined, as an extremely few amount of the people who mine them/trade them actually want them, they just want the cash they can get from the people who buy them, and thus place the value on them. Once the miners stop producing them, and thus stop selling them to the buyers, then who will buy them? Those who've amassed large sums of bitcoins will have trouble finding anyone who actually wanted to buy them besides themselves because they are "investors."

Or like the magic of how the stock market works, it just will. Because literally, the only way the stock market can work is through literal magic.
(Like, do any of you actually know how the stock market works? Like who/what decides the prices? Like how you can't sell your stock for you think it's worth, only for what the "market" value is, or how you can sell stock you don't own somehow.)
 
There is no inherent requirement for a "bubble" to cryptocurrency. Any asset, whether real or virtual, can experience bubbles.
What will keep the hashing networks operating is the tiny transaction fees that are included; the miners collect those fees when they process transaction hashes in addition to the new coins they generate from "mining."
As to whether or not it should be taxed, of course the parasites want to be able to get their hands on anything of value. The untraceable, decentralized nature of cryptocurrency transactions however does offer some protection from these would-be looters, and is one of the advantages of cryptocurrency.
 


... And probably also one of the reasons why it could potentially hold it's value in the long run since it's practically untraceable. Making it the perfect currency to do illegal trading on the web, thus why I also think it's inevitable that it will be regulated by authorities if the currency keeps getting more and more established.

The stock market is not hard to understand since it's essentially comes down to supply and demand. The trick is to predict the demand before it actually exist, thus making the market really abstract in some cases since a prediction of a demand can end up being a self forfilled prophecy and the other way around, thus affecting the stock value with no real reason.
 

And thus that makes anyone trading in it liable for money laundering, which is illegal everywhere basically.


Right, but who's controlling the value of the supply.
 
"Money laundering" violates no one's rights. Assuming the money being "laundered" was earned honestly, that concealing its ownership or quantity has been made a crime was merely to serve the interests of financial game-players, or to expose it to looting (i.e. taxation) by parasites. That cryptocurrency can be kept out of dishonest hands is one of its strengths.

The "value" of the supply is determined by the free market. The quantity of the supply is determined by the algorithms on which the particular cryptocurrency is based. A particularly limited quantity is a weakness rather than a strength, because coins "lost" in any way are simply gone, *poof*; there is no recovery. This weakness is somewhat ameliorated by the fact that cryptocurrency can typically be transacted in very tiny fractional amounts.
 


Thanks for the info. When I get home from work I will give Cryptsy a look. It looks like they will have crypto to USD soon!
 
Oh sure, the parasites can try all kinds of controls, but they will have no effect if people either ignore them, or if they never convert the cryptocurrency into fiat, but spend it directly. The anonymity of crypto is another strength. The parasites can thrash about all they like, but unless they have the means to take over at least 51% of a given hashing network, they're impotent; there's little they can really do about it. They can monitor the "conversion portals," so to speak, but that will just strengthen the market for the alternate currency.
 


Wow if it was that price I would have gone for it instead of the GTX 770. Thanks
 
We get around 22500 k/hash with our x30 290 tower, nvidia cards just aren't worth bothering with IMHO.

The Nvidia 750Ti is good for the money VS like for like spend on ATI 280x and 290, but as you ultimately need more PCI-express slots and more nvidia cards for the same hash, the cost of motherboards, memory, cpus etc needs to be factored in and this increases the overall cost.

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Concur, its all about intrinsic value, this is a superb read, but you'll need a coffee before you begin!

http://www.coindesk.com/bitcoin-intrinsic-value-alan-greenspan/
 


Thanks for the good read.

What I found as an interesting piece in the article was this bit:
... value that cannot be devalued unilaterally by a government (though as the recent drop in price in reaction to China’s official position on financial institutions trading bitcoin shows, governments certainly have a voice in Bitcoin’s future).
Click to expand...

I think this is a good example that bitcoins are not at all safe from government regulations. Also once all bitcoins are mined and available on the Bitcoin network what would stop governments/banks to buy all/big portions of the bitcoins, thus letting them to be able to decide the value of the bitcoins?

I'm really all pro the bitcoin technology but if the Bitcoin network is going to be established into something as big as the fiat currency network (more or less accessable to all globally) it will eventually be linked to the fiat currency, which it really already is and will eventually be just as depended on the same paramaters as the fiat currency. But it will still have advantages of being a 100% virtual currency, which will probably revolutionize the e-market as the article also mentions.

If I wasn't such a lazy bastard I would probably try bitcoin mining myself. I will probably regret I didn't in a few years, like I already regret that I didn't start mining when I first heard about it in 2011 :)

There's no real limit for the bitcoin. As long as the Bitcoin network keeps growing it could potentially end up taking over the fiat currency as the most popular currency and turning the whole table around.
 
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