Cryptocoin Mining?

[Binky]

Maxcoin hard fork soon, update your wallets. Profitability on max is pretty decent right now too...

 

[Virge_]

Were I to guess I would say there is a Titan currently mining Greececoin on Dedicatedpool. A single user is hovering around 220khash. Highest I've ever seen.

 

[Attic]

I'm now 100% on scrypt N and getting roughly 0.005-0.006btc/mhash adjusting for scrypt n@50% of scrypt hashing power. I like DarkCoin's idea of scrypt resistance and also less power use, not setup for it yet.

POS coins haven't caught my attention yet. Still evaluating.

I believe BTC is likely doomed if they do not find a way to remove the massive capital allotment outfits from cornering the mining market. We already have a system like that with corrupt central banks and their member banks around the globe and that's what BTC sought to seperate from. It's the perverse function of a centralized system that is corrupt, not the individuals themselves. So solving individual corruption is useless if they adhere to an increasing centralized system. IMO that leaves the solution soley to the system rather than individuals. Given there has been nothing to stop the growing centralized nature of Bitcoin mining, the future I see for it is not rosy.

I believe BTC's real value still isn't being exposed, but that it is fundamentally built on decentralization and without decentralization there is really no place for BTC going forward as an alternative to the USD or other national currencies. Bitcoin will have to resolve the problem of centralization IMO for it to have a future. Will eagerly watch where it goes regardless.

Very interested to see how scrypt asic's like gridseeds will change landscape along with the rapid decrease of profitablity of mining over the past 3 months.

Does anyone have a handle on anything that is trying to gauge total scrypt hashing power across all alotcoins? I used to use LTC, but would like to get an idea of how much hashing power is being added to the scrypt coins.


I've come to agree with the folks stating that the IRS decision is akin to a death by a thousand cuts attack on crypto. Make every thing about it difficult and absurdly tedious in an effort to kill the larger animal. It should be taken for what it's worth that the IRS actually stated one needs to account for difference in price from purchased/mined BTC and what it's worth when they buy something with it AND that they used a $2 cup of coffee as their example rather than a sizeable purchase like a car. Were people to actually adhere to the IRS outline here it would be the end of BTC because nobody is going to be bothered to do it. Either they wont do it, or they won't use bitcoin, which leaves people who won't do and still use bitcoin while trying to stay under IRS radar for audit. This clearly removes some folks from the mix of using bitcoin, though the taxable clarity may end up adding some retailers. Expected, and also worrysome because ultimately the IRS decision ends up putting much of the power of bitcoin under government rules and restrictions which can then be changed or applied in a corrupt manner. What if the IRS is instructed to go after BTC users/miners much more aggressively than any other segment of the population?, something we know the IRS has and will do due to who it takes orders from (R or D) financiers who really control the nation's laws.

 

[taltamir]

It's the perverse function of a centralized system that is corrupt, not the individuals themselves. So solving individual corruption is useless if they adhere to an increasing centralized system. IMO that leaves the solution soley to the system rather than individuals. Given there has been nothing to stop the growing centralized nature of Bitcoin mining, the future I see for it is not rosy

Ok, first you are throwing buzzwords and tautologies around.
Second, it is individuals who are corrupt, as only an individual CAN be corrupt. A "corrupt system" is just a group of corrupt individuals in charge of a system. It is impossible to have a corrupt system without a single corrupt individual (ESPECIALLY a centralized one). The problem with a centralized system is that it ENABLES those corrupt individuals to cause a lot of damage. A decentralized system seeks to defang and depower the corrupt.
Besides all that, the biggest issues that crypto was meant to tackle is government incompetence, not corruption.

 

[Attic]

Ok, first you are throwing buzzwords and tautologies around.
Second, it is individuals who are corrupt, as only an individual CAN be corrupt. A "corrupt system" is just a group of corrupt individuals in charge of a system. It is impossible to have a corrupt system without a single corrupt individual (ESPECIALLY a centralized one). The problem with a centralized system is that it ENABLES those corrupt individuals to cause a lot of damage. A decentralized system seeks to defang and depower the corrupt.
Besides all that, the biggest issues that crypto was meant to tackle is government incompetence, not corruption.

Yep, to touch on the last part of your post first, i'd say that the incompetence of the system is due to corruption. The incompetence severely hurts most people, but I think we'd agree that a few people are highly rewarded regardless of the overall incompetence.

I agree, it is the individual who is corrupt not the system necessarily, while it is the type of system he/she tries to engage his/her corruption on that becomes corrupt as a result. Where the corruption of an individual is best rewarded or put to use is where the corrupt individual will go. History is proof that increased centralized control always leads to increased corruption. The balance of that is not important, but we know left unchecked that increased centralization will manifest corrupt outcomes and results.

Here's a decent write up that has some tie in's to systems and indviduals who excell in them, with a direct example being the government in the USA.
http://www.oftwominds.com/blogmar14/sociopaths3-14.html

A centralized system is alluring for and rewards the corrupt individuals and corruption while that same system is punishing for those with integrity or those who choose to not use corruption. That would be another way of looking at my position on centralized systems. Basically they will draw in the corrupt because that is where corruption has the highest reward, their may be individuals full of integrity in centralized systems, but they will be at a disadvantage in such a system to those who are corrupt. Over time the corruption will win out. That's why IMO the responsibility is on designing and maintaining a decentralized system, something Bitcoin is failing to do over time due to centralized hashing power centers that are winning out. If the mined bitcoins spread to more individuals that is a good thing, but the centralized control of the creation of bitcoins is in the long term a value defeating side of BTC's future.

Bitcoin can't upset the status quo if it becomes the same as our current status quo, and I believe BTC gets 90% of it's value as an alternative to the current status quo of trade through USD and other nations currencies.

The IRS ruling is bad on top of this because it essentially destroys btc's place as a fungable means of trade. Bitcoins become different than eachother based on when they were bought (at price $10 vs price $350 becomes 2 different bitcoins based on IRS rulings) and btc's really need to all have same value if they will be used for trade.

Overall I'd say that without question there needs to be some form of response from the BTC community, but from what I see BTC will simply be pushed out of the USA into other countries.

 

[slashbinslashbash]

I'm now 100% on scrypt N and getting roughly 0.005-0.006btc/mhash adjusting for scrypt n@50% of scrypt hashing power. I like DarkCoin's idea of scrypt resistance and also less power use, not setup for it yet.

POS coins haven't caught my attention yet. Still evaluating.

I believe BTC is likely doomed if they do not find a way to remove the massive capital allotment outfits from cornering the mining market. We already have a system like that with corrupt central banks and their member banks around the globe and that's what BTC sought to seperate from. It's the perverse function of a centralized system that is corrupt, not the individuals themselves. So solving individual corruption is useless if they adhere to an increasing centralized system. IMO that leaves the solution soley to the system rather than individuals. Given there has been nothing to stop the growing centralized nature of Bitcoin mining, the future I see for it is not rosy.

I believe BTC's real value still isn't being exposed, but that it is fundamentally built on decentralization and without decentralization there is really no place for BTC going forward as an alternative to the USD or other national currencies. Bitcoin will have to resolve the problem of centralization IMO for it to have a future. Will eagerly watch where it goes regardless.

Very interested to see how scrypt asic's like gridseeds will change landscape along with the rapid decrease of profitablity of mining over the past 3 months.

Does anyone have a handle on anything that is trying to gauge total scrypt hashing power across all alotcoins? I used to use LTC, but would like to get an idea of how much hashing power is being added to the scrypt coins.


I've come to agree with the folks stating that the IRS decision is akin to a death by a thousand cuts attack on crypto. Make every thing about it difficult and absurdly tedious in an effort to kill the larger animal. It should be taken for what it's worth that the IRS actually stated one needs to account for difference in price from purchased/mined BTC and what it's worth when they buy something with it AND that they used a $2 cup of coffee as their example rather than a sizeable purchase like a car. Were people to actually adhere to the IRS outline here it would be the end of BTC because nobody is going to be bothered to do it. Either they wont do it, or they won't use bitcoin, which leaves people who won't do and still use bitcoin while trying to stay under IRS radar for audit. This clearly removes some folks from the mix of using bitcoin, though the taxable clarity may end up adding some retailers. Expected, and also worrysome because ultimately the IRS decision ends up putting much of the power of bitcoin under government rules and restrictions which can then be changed or applied in a corrupt manner. What if the IRS is instructed to go after BTC users/miners much more aggressively than any other segment of the population?, something we know the IRS has and will do due to who it takes orders from (R or D) financiers who really control the nation's laws.

The IRS decision is no different than how you are required to handle stocks. If you buy 2 shares of AAPL today, and 3 shares of AAPL tomorrow, and 5 shares of AAPL the next day, and hold them all for a year, and then sell all 10 together, you've got to keep track of the price paid for each of those purchases, and pay separate capital gains on each of them.

One plus side is that crypto-currencies appear to be eligible for 1031 Like-Kind Exchanges. (Stocks, bonds, and other securities are specifically excluded from Like-Kind Exchanges.) So you can trade between different cryptos without having to keep track of your basis each time you trade. So you don't have to do the basis evaluation until you cash out to fiat. (This would have been MUCH worse if the IRS had called crypto-currencies "currency" instead of "property" -- then you would have to keep track every time you trade BTC for LTC.)

Anybody who does a lot of stock trading knows that you've got to keep up with every transaction. It is a hassle, but there are tools out there to help with this. I'm sure those tools will appear for cryptos now that the IRS has ruled on them.

 

[slashbinslashbash]

POS coins haven't caught my attention yet. Still evaluating.

I should note that coins such as Counterparty and Mastercoin are not POS. They aren't even mined at all. The bitcoin miners mine and secure the blockchain for them, since all Counterparty and Mastercoin transactions are stored in the Bitcoin blockchain.

For cryptos such as BitShares and NXT that have their own blockchain, POS or some kind of POS-like system is a necessity to create and secure the blockchain.

 

[geokilla]

DOGE is near 100 satoshi... And I'm still holding. WHY?!

 

[IEC]

DOGE is near 100 satoshi... And I'm still holding. WHY?!

Almost everything is down because BTC is down.

 

[njdevilsfan87]

Thanks IRS. I believe you now owe a large portion of BTC and LTC holder some money for losses. If you want to play that game then fine, I'm ready to claim some LTC I mined at $30 and it's now worth $13.

Oh and my Dogecoins too.

 

[T_Yamamoto]

Yeah, everything is down because BTC is down.

 

[PhIlLy ChEeSe]

Fools gold!

 

[njdevilsfan87]

Yeah, everything is down because BTC is down.

Yep. But is it bad these kinds of price movements no longer phase me at all? :whiste:

I'm just completely used to this by now. How can I ever go trade in a stock market or even forex after cryptos. I'd have like massive ADD problems watching a stock price move 0-2% per day, or a whole 5-10% on a big day that happens once every few months.

 

[AyashiKaibutsu]

DOGE is near 100 satoshi... And I'm still holding. WHY?!

Yep prices low... sell sell sell! That's how you get rich (granted I wasn't holding doge to begin with...).

I find it funny watching threads like this the trend of omg prices high going to hold cause it's bound to go higher! and then omg prices low have to get out NOW!

 

[AkumaX]

Doge HOLD!!!!

 

[Bubbleawsome]

Still holding my Doge. No idea why.

 

[IEC]

Sitting on nearly a million DOGE here, and I don't care.

I may even dump all my BTC into DOGE for a laugh. Still mining DOGE.

The bottom fell out of the market today. I expect prices on used video cards to crater soon now.

 

[taltamir]

Yep prices low... sell sell sell! That's how you get rich (granted I wasn't holding doge to begin with...).

I find it funny watching threads like this the trend of omg prices high going to hold cause it's bound to go higher! and then omg prices low have to get out NOW!

that is pretty amusing

 

[KingFatty]

So you don't have to do the basis evaluation until you cash out to fiat.

What about when you mine. What I mean is, how do you know when to evaluate a basis, and on how much?

So assume you mine 1 bitcoin per minute. And the rate changes over time. You mine 60 coins in an hour. When do you evaluate their initial basis for those 60 coins? After 15 minutes with 4 evaluations? More?

When you mine constantly, you are just getting a constant stream of fractions of a coin, so how can you know what to initial value them at, for when you eventually cash them out and value them again to tell if you took a loss?

 

[24601]

EDIT: Meh, looks like no interest.

 

[dajeepster]

What about when you mine. What I mean is, how do you know when to evaluate a basis, and on how much?

So assume you mine 1 bitcoin per minute. And the rate changes over time. You mine 60 coins in an hour. When do you evaluate their initial basis for those 60 coins? After 15 minutes with 4 evaluations? More?

When you mine constantly, you are just getting a constant stream of fractions of a coin, so how can you know what to initial value them at, for when you eventually cash them out and value them again to tell if you took a loss?

The IRS is never going to know how many bitcoins you have unless you tell them. There's no paper trail. And as long as you don't give them your wallet address (no publish it), they'll have difficulty trying to find out what's in your wallet.

my current valuation of coins is when i sell them, and i only sell them to buy hardware, pay electricity, and internet/phone. I'll deduct all those during taxes, so my net profit is ZERO.. so i'll pay no taxes on profit... that's all they get to know.

 

[frowertr]

The IRS is never going to know how many bitcoins you have unless you tell them. There's no paper trail. And as long as you don't give them your wallet address (no publish it), they'll have difficulty trying to find out what's in your wallet.

my current valuation of coins is when i sell them, and i only sell them to buy hardware, pay electricity, and internet/phone. I'll deduct all those during taxes, so my net profit is ZERO.. so i'll pay no taxes on profit... that's all they get to know.

If you are in the U.S., the IRS won't ASK you for your Bitcoin wallet address. When/If you get audited, they will TELL you to give it to them.

 

[Kenmitch]

If you are in the U.S., the IRS won't ASK you for your Bitcoin wallet address. When/If you get audited, they will TELL you to give it to them.

And then there is Coinbase.....Does a deposit show a return addy?

 

[GrumpyMan]

If you are in the U.S., the IRS won't ASK you for your Bitcoin wallet address. When/If you get audited, they will TELL you to give it to them.

I would expect the IRS to implement this sooner rather than later, otherwise no deduction on losses allowed.

 

[Virge_]

If you are in the U.S., the IRS won't ASK you for your Bitcoin wallet address. When/If you get audited, they will TELL you to give it to them.

Ok. Which wallet should I give them? I currently have about 7 BTC wallets..