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Bitcoin mining

Discussion in 'General Discussion' started by MrBlobby, Apr 5, 2013.

  1. Minstadave

    Caporegime

    Joined: Jan 8, 2004

    Posts: 25,146

    Location: Rutland

    The CPU/GPU cycles aren't used for anything productive as far as I'm aware.
     
  2. Addicted

    Mobster

    Joined: Jul 23, 2007

    Posts: 2,632

    Location: Worcester

    Sure they are, they calculate the transactions for the cryptocurrency.

    Not useful for anything else though.
     
  3. Fuzz

    Capodecina

    Joined: Aug 3, 2003

    Posts: 15,298

    Location: Cheltenham ;-)

    Who cares what they are used for, as long as you get bitcoin for doing it?
     
  4. SlyReaper

    Soldato

    Joined: Apr 26, 2008

    Posts: 6,357

    Location: Bristol, Old Blighty

    People who would rather get the warm fuzzy feeling of doing something useful like protein folding.
     
  5. SexyGreyFox

    Man of Honour

    Joined: Mar 29, 2003

    Posts: 49,397

    So where do you spend them?
    I can't say I've ever seen a 'Pay by Bitcoin' option but prove me wrong.
     
  6. Macky

    Soldato

    Joined: Apr 5, 2009

    Posts: 5,748

    Location: England

    Sites where you want to remain anonymous when buying. Silkroad I think is one I've heard of before.
     
  7. SlyReaper

    Soldato

    Joined: Apr 26, 2008

    Posts: 6,357

    Location: Bristol, Old Blighty

    There's a list here.
     
  8. Fuzz

    Capodecina

    Joined: Aug 3, 2003

    Posts: 15,298

    Location: Cheltenham ;-)

    You don't spend them, you sell them for cash.

    Anyway as for the warm fuzzy feeling thing doing protein folding...
    Being as my PS3 used to do that but all I get now when logging in is "The program has successfully concluded" I thought I'd try something else.
     
  9. ChrisLandin

    Wise Guy

    Joined: Jun 10, 2009

    Posts: 1,959

    Location: Darlington

    I mined bitcoins 2 years ago. I had 3 machines going comprising 2 x 5970's , 4x 5870's 2x 5850's and a 5830.

    It took over months of my life. Yes I'm sad. I was forever checking the value, the pools I used to mine everything. It consumed my life.

    I had remote access to my pcs on my smart phone I was forever checking. Back then the price was a tender a coin. When the market dipped ( and it does ) down to £2.50 I stopped. Totally lost heart.

    I had however mined 300 coins. I always believed bitcoin would come good for me.

    I sold my coins last week on intersango. Money is in my bank. Happy days :)
     
  10. Lil old me

    Mobster

    Joined: Oct 18, 2002

    Posts: 2,525

    Location: Norfolk

    So you made £50,000 give or take?! That's incredible!
     
  11. Judgeneo

    Capodecina

    Joined: May 15, 2010

    Posts: 10,013

    Location: Out of Coventry

    Well done!
     
  12. Raymond Lin

    Capo Crimine

    Joined: Oct 20, 2002

    Posts: 63,609

    Location: Wish i was in New York

    Well done Chris !

    Although, is bitcoin mining subject to Income Tax?
     
  13. Surveyor

    Capodecina

    Joined: Sep 5, 2010

    Posts: 21,188

    Location: Somewhere

    That or possibly Capital Gains Tax.

    Tax compliance

    UK tax in relation to bitcoin

    I'm sure HMRC will be interested where ~£50k came from.
     
  14. ChrisLandin

    Wise Guy

    Joined: Jun 10, 2009

    Posts: 1,959

    Location: Darlington

    Haha no where near £50,000. I wish. There has to be a demand for that many coins at that high a price. I made £12,600.

    I placed lots of little sell orders to maximise my return. The problem with bitcoin is its very new and very fragile. If you drop a huge amount onto the exchanges in one go the price crashes.

    In my opinion it's not worth mining now. It's not feasible. Once you offset your electricity costs against the ever increasing difficulty level the return now is very small.

    I set up again last night and mined 8 hours on my 7970 with my old pool and we didn't even find a block!
    Loads of he fellas I used to mine with are still doing it but they are based in Holland and have some free electricity deal or something and they are now pushing out some serious mega hashes but they ain't rich yet, even with the massive price hike.

    If and it's a big if the ASIC devices do ever ship, the first few people with them are going to make a fortune until it plateaus out, everyone who's serious about minng has one and the difficulty has skyrocketed.

    Just so you know when I was mining the difficulty was under 750000, now look at it!
     
  15. Energize

    Caporegime

    Joined: Mar 12, 2004

    Posts: 27,857

    It's capital gains. 18% above £10,600. It's an inherent problem with depositing the gains into a bank account.
     
  16. cainer

    Man of Honour

    Joined: Jan 9, 2010

    Posts: 12,718

    is bitcoin mining the reason why 5870's are selling for ~£150 atm? if so im tempted to sell mine now while some buyers think the sun is still shining
    I cant think of any other reason for the 2nd hand value to be so high
     
    Last edited: Apr 15, 2013
  17. Bumhug

    Hitman

    Joined: Nov 2, 2009

    Posts: 596

  18. Addicted

    Mobster

    Joined: Jul 23, 2007

    Posts: 2,632

    Location: Worcester

  19. Jono8

    Caporegime

    Joined: May 20, 2007

    Posts: 29,242

    Location: Surrey


    Nice one! As I said earlier, if you were an early adopter you could have made decent money from this.

    There just doesn't seem to be any point now. I mean you could speculate on them but due to the difficulty of large transactions and the wild fluctuations, it would be extremely risky.
     
  20. Marvt74

    Capodecina

    Joined: Feb 20, 2004

    Posts: 13,242

    Location: Higher Walton

    Depends on how much his regular income is, it could be more like 28%.