Bitcoin mining

xibinim said:
This machine looks a don! 1,500 GH/s :eek::eek:

https://products.butterflylabs.com/homepage/1500gh-bitcoin-miner.html



Worth watching the state of it all over the next few months. Research ahoy.
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Calling it now: when those ASIC-based machines become widely available, the value of bitcoins will fall due to the sudden spike in supply. It will also stop GPU mining from being profitable.

Edit: here's a thought. The people who sell that kit - do they accept bitcoins as payment? :p
 
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Addicted said:
Hey Guys - had a few q's -

I know a 7970 does around 750Mh/sroughly, but came across this https://products.butterflylabs.com/homepage/5-gh-s-bitcoin-miner.html

That is only $274 - but does 5GH/s - aka 5000Mh/s - why would anyone NOT go for one of these? Surely it would pay for itself very quickly? OR am I missing something. I'm tempted to buy one!
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xibinim said:
This machine looks a don! 1,500 GH/s :eek::eek:

https://products.butterflylabs.com/homepage/1500gh-bitcoin-miner.html



Worth watching the state of it all over the next few months. Research ahoy.
Click to expand...

Butterfly labs is not delivering guys there all a scam. Look deeply into it
 
SlyReaper said:
Calling it now: when those ASIC-based machines become widely available, the value of bitcoins will fall due to the sudden spike in supply. It will also stop GPU mining from being profitable.

Edit: here's a thought. The people who sell that kit - do they accept bitcoins as payment? :p
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Correct me if I am wrong but I thought supply is "released" following a geometric series diminishing returns. It was my understanding that mining releases a set amount of bitcoins per time frame.

To put in simple terms no matter how many 10 or 100 machines mine, after 1 hour only x amount of coins will be mined and spread between either 10 or 100 machines, thus making supply spike impassible, is this not correct?
 
Nerusy said:
Correct me if I am wrong but I thought supply is "released" following a geometric series diminishing returns. It was my understanding that mining releases a set amount of bitcoins per time frame.

To put in simple terms no matter how many 10 or 100 machines mine, after 1 hour only x amount of coins will be mined and spread between either 10 or 100 machines, thus making supply spike impassible, is this not correct?
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Supply will spike to those who have the machines, so yes the same amount of coins are mined each time - but people who are mining with GPU's will see a decrease in their share by a LOT - even the smallest 1.5Gh/s is the speed of 2x 7970's, and it cost's $270... (plus uses much less power).

It's not that supply is spiking, it's that it's spiking with certain users.
 
I read quite an interesting article about this which confirmed my suspicions over this. The creator must be rolling in it now ,as are other very early adopters and investors (imagine if you had bought 1000 of these when they were worth a few pence each...). There is no more money to be made other than market speculation/trading and I'm not sure I would want to risk that now that they are so expensive to buy and due to the fact that this will eventually collapse.

It really is just a clever type of pyramid scheme.
 
Suddenly everyone is a gamer and a get rich quick prospector


CLUE you have already missed the boat
 
Nerusy said:
Correct me if I am wrong but I thought supply is "released" following a geometric series diminishing returns. It was my understanding that mining releases a set amount of bitcoins per time frame.

To put in simple terms no matter how many 10 or 100 machines mine, after 1 hour only x amount of coins will be mined and spread between either 10 or 100 machines, thus making supply spike impassible, is this not correct?
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Pretty much yeah, I'm certainly not an expert but have been following things a bit more with recent developments.

Effectively the network tries to ensure that blocks are generated at a roughly constant rate (and each generated block grants a certain number of bitcoins)
This rate isn't adjusted immediately if new computing power comes online though, so you may get bitcoins being generated faster for a short period of time.

Over the longer term you will only gain if you increase your portion of computing power relative to whatever else is out there.
Basically this means that as soon as ASICs become commonplace then GPU based mining will pretty much be irrelevant as the difficultly of mining a block will increase in response to the increased hash generation capabilities so your GPU based system will have less and less ability to generate blocks.

IMO it's all looking a bit bubble like at the moment. I think if you extrapolate the gains over the last couple of weeks it works out to be millions of % on an annual basis, which certainly isn't sustainable and will likely only lead one way in the coming months.
 
Frodo1805 said:
Who would actually do this?
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I'm giving it a go just to see how it all works really. I certainly haven't made much money in the few short hours total I've been running it (33 euro cents at current values). Running the miner at about 60% capacity so that I can still do other things on my computer while it's running. I don't expect I'll keep it up long enough to make more than a couple of quid. It'll pay for my next beer, assuming I'm allowed to withdraw such a tiny amount. :p
 
SlyReaper said:
I'm giving it a go just to see how it all works really. I certainly haven't made much money in the few short hours total I've been running it (33 euro cents at current values). Running the miner at about 60% capacity so that I can still do other things on my computer while it's running. I don't expect I'll keep it up long enough to make more than a couple of quid. It'll pay for my next beer, assuming I'm allowed to withdraw such a tiny amount. :p
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On CPU or GPU?
 
Addicted said:
Over the past day I've mined 0.05 BTC - which is about $8.
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Nice, you're going about twice as fast as me. What hardware is that on?

Edit: agh, sorry for double post - I meant to edit the one above, but for some reason I can't delete my own posts here.
 
SlyReaper said:
Nice, you're going about twice as fast as me. What hardware is that on?

Edit: agh, sorry for double post - I meant to edit the one above, but for some reason I can't delete my own posts here.
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Single 7970 Lightning @ 1250Mhz/1700Mhz, averaging 740Mh/s atm, this is through pool sharing on 50BTC - anyone know of any better places for sharing? I like the fact there's a very small minimum payout.
 
Very much doubt it, you need some severely high processing power for it to be worth it.

Slush's pool is recommended, but I've moved over for the time being as I seem to be getting better return on 50BTC.
 
Addicted said:
Single 7970 Lightning @ 1250Mhz/1700Mhz, averaging 740Mh/s atm, this is through pool sharing on 50BTC - anyone know of any better places for sharing? I like the fact there's a very small minimum payout.
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I'm on BTC Guild I average around 0.044 btc a day, this is with a 7970@1075. I see your 7970 in heavily overclocked, turn down your memory and save power, high memory does nothing for mining hash rate (mine is at 925 Mhz)

Also you might find if you have a power meter that by lowering your GPU clock, and using less volts you'll get a better hash rate/power usage ratio.
 
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