Moore's Law on Steroids: Bitcoin Mining

Any expat related issue or comment.

Moderators: Sometimewoodworker, MGV12, BKKBILL

Re: Moore's Law on Steroids: Bitcoin Mining

Postby MGV12 » Sun Dec 22, 2013 3:34 pm

Roger Ramjet wrote:MGV12,
Have you ever thought there just might be an ulterior motive


Their is always an ulterior motive to everything these days that involves currency and mega-rich folk.

“Some days I am an optimistic pessimist ... other days I am a pessimistic optimist”
User avatar
MGV12
 
Posts: 5349
Joined: Wed Jan 23, 2008 4:23 pm
Location: Chiang Mai

Re: Moore's Law on Steroids: Bitcoin Mining

Postby MGV12 » Wed Dec 25, 2013 4:11 pm

Virtual alert: RBI warns users against bitcoin risks

The Reserve Bank of India (RBI) on Monday warned users, holders and traders of virtual currencies, including bitcoins, of financial, operational, legal, customer protection and security related risks.

The RBI said virtual currencies as a medium for payments were not authorised by any central bank or monetary authority.

The central bank said it was keeping watch at the developments relating to certain electronic records claimed to be decentralised digital currency such as bitcoins, litecoins, bbqcoins, dogecoins and their usage or trading in the country.

http://www.financialexpress.com/news/vi ... ks/1211322

What's Next For Bitcoin In 2014?

Boom, bubble, crash. That is one of the natural cycles of markets.

Whenever there is a virtuous circle of capital growth there is likely to be an acceleration of the process. The process is similar to feedback in a sound amplifier. From a tiny seed, the noise grows until left unchecked the system itself is destroyed.

When there is money to be had in asset appreciation, this signal attracts people to buy those assets and create the very appreciation that attracted them in the first place. This cycle of attraction causes a boom, then a bubble.

As I long ago told a quant measuring the Nasdaq on a log scale: Markets can’t grow on a log scale in the short-to-medium-term because the result would be a meltdown. They didn’t agree but the meltdown happened soon enough.

Bubbles can be measured on a log scale and so can crashes. However, sustainable investment is on a linear scale. So markets are plagued with bubbles and many people get sucked/suckered into them because their ability to do so is why they exist in the first place.

Yet while we might not recognize the bubble we are backing–being that big government, a high tech toy company, the latest tech thingy or mining prospect–most of us can recognize someone else’s bubble pretty easily.

However, one of the central causes of bubbles is not well understood. Major bubbles are caused by the invention of new financial instruments. The tulip bubble may have been caused by imprisoned Turkish princes hooked on gardening in their duplex cells, but its driver was options. Options weren’t understood well, in fact not even understood well at all until the 1960s and Black-Scholes. The emergence of options was key to that bubble.

Invent paper money and you get John Law’s French Mississippi bubble. Get busy with leveraged equities you are staring at the boom, bubble, bust of 1929. Invent credit default swaps, collateralized debt instruments cleverly tranched and you get a boom bubble and bust that set back the economies of the west for what looks set to be a decade.

Invent a cryptocurrency and you can expect a repeat of the cycle of boom, bubble and bust.

This might sound gloomy for bitcoiners, but it isn’t necessarily the case, in fact quite the opposite, it might just be great news, at least for cryptocurrencies.

It’s important to remember that while the tulip bubble was bad for the economic and political fabric of Holland, it wasn’t terrible news for tulips. Holland may have lost its economic dominance through the resulting economic chaos of that crash, but today Holland still has a billion dollar tulip business.

Wall Street might have crashed, but the stock exchanges of America are still fat enough to just about cover the profligate U.S. government’s titanic debt. There might have been a huge implosion of CDS, CDO but they are still building houses in America.

It doesn’t matter much to the idea of cryptocurrencies whether Bitcoin or its many emulators boom, zoom and crash, there will be cryptocurrencies from here on and they will flourish.

They will evolve, they will be regulated, they will be centrally regulated, controlled and likely minted and they won’t bring big government to its knees.

Libertarians, anarchists and minarchists will be disappointed that the overwhelming state will not be rolled back by cryptocurrencies, but then they have yet to appreciate that technology is not the friend of the individual. Technology like money or any other power is Pareto distributed. This will always work against the individual.

http://www.forbes.com/sites/investor/20 ... n-in-2014/

Don't dismiss this as being just a new fad .... Cryptocurrency has got a lot of folk in the banking and 'investment' industry ... who currently receive mega-bonuses - even if they screw-up ... very worried. The 'untouchable and untaxable' currency of the future [ :?: ] is staring them [virtually] squarely in the face. Personally I would pin my future on working towards being self-sufficient .... at that point those virtual currency protagonists [et al] can stress themselves out in whichever way they please. However I doubt what I do will change the course of human 'evolution'.

“Some days I am an optimistic pessimist ... other days I am a pessimistic optimist”
User avatar
MGV12
 
Posts: 5349
Joined: Wed Jan 23, 2008 4:23 pm
Location: Chiang Mai

Re: Moore's Law on Steroids: Bitcoin Mining

Postby BKKBILL » Fri Dec 27, 2013 7:02 pm

Just when you thought it was safe to go out. :mrgreen:

Dogecoins and Litecoins and Peercoins oh my: What you need to know about Bitcoin alternatives


http://www.washingtonpost.com/blogs/the ... 12c1cd8d1e
It's not who you know, it's whom you know.
User avatar
BKKBILL
 
Posts: 2941
Joined: Tue May 26, 2009 10:05 pm
Location: Mae Taeng, Chiang Mai

Re: Moore's Law on Steroids: Bitcoin Mining

Postby MGV12 » Fri Dec 27, 2013 8:03 pm

If 'he' has a face Satoshi Nakamoto must surely be laughing all over it.

http://en.wikipedia.org/wiki/Category:C ... algorithms

Analogous to:
You do not have the required permissions to view the files attached to this post.

“Some days I am an optimistic pessimist ... other days I am a pessimistic optimist”
User avatar
MGV12
 
Posts: 5349
Joined: Wed Jan 23, 2008 4:23 pm
Location: Chiang Mai

Re: Moore's Law on Steroids: Bitcoin Mining

Postby MGV12 » Sun Dec 29, 2013 10:41 am

I am merely posting this for the few who are interested but still not sure what Cryptos are all about:

Scrap the Shovels -- 21st-Century Mining Uses Computers

By Daniel T. Cook
December 6, 2013

Sadly, one MacBook Pro hooked up to a desktop won't get the job done. Successful bitcoin mining operations involve thousands of computers working together. This computing power is then focused on cracking codes and solving equations, all for the betterment of mankind.

excerpt .........................................

Time well spent
Miners (pools of computers) get paid in bitcoins (usually 25 to 50) after cracking codes and solving equations that could lead to medical and technological advancements. Mining bitcoins can be a good way to keep any computer out of trouble during its downtime. Organized crime rings have been known to steal idled computing power, using it to commit crimes such as identity theft and DDoS attacks for ransom. One software company has already been fined $1 million for installing code onto customer computers that instructed them to mine bitcoins without prior consent.

excerpt .........................................

Greater fool theory
Historians of financial market bubbles have remained fully employed over the past decade or so. Over that time period, irrational exuberance has popped in dot-com stocks, real estate, Chinese stocks, and commodities. Out with the old and in with the new crypto currencies. Nothing will be different this time. Market history proves that someone always gets left holding the bag. On the bright side, unlike with art and gold, bitcoins will never fade or lose their luster.

The full article http://www.fool.com/investing/general/2 ... r-Wzvuq-So

“Some days I am an optimistic pessimist ... other days I am a pessimistic optimist”
User avatar
MGV12
 
Posts: 5349
Joined: Wed Jan 23, 2008 4:23 pm
Location: Chiang Mai

Re: Moore's Law on Steroids: Bitcoin Mining

Postby MGV12 » Fri Jan 03, 2014 6:18 pm

Even the mighty [?] Chinese aren't keeping Bitcoin [et al] down

http://markets.blockchain.info/

“Some days I am an optimistic pessimist ... other days I am a pessimistic optimist”
User avatar
MGV12
 
Posts: 5349
Joined: Wed Jan 23, 2008 4:23 pm
Location: Chiang Mai

Re: Moore's Law on Steroids: Bitcoin Mining

Postby Roger Ramjet » Thu Jan 16, 2014 1:47 pm

It really is becoming a problem for banks and governments now: http://www.abc.net.au/news/2014-01-15/v ... ns/5202040
Perhaps the Aussie government will pay pensions in Bitcoins? :D
User avatar
Roger Ramjet
 
Posts: 5250
Joined: Tue Apr 27, 2010 12:55 pm

Re: Moore's Law on Steroids: Bitcoin Mining

Postby MGV12 » Thu Jan 16, 2014 2:23 pm

Roger Ramjet wrote:It really is becoming a problem for banks and governments now: http://www.abc.net.au/news/2014-01-15/v ... ns/5202040
Perhaps the Aussie government will pay pensions in Bitcoins? :D


Naturally the more it's used the less it will be liked by banks and governments for the obvious reasons. They know there is little they can do to stop it without being heavy-handed ... the recent Chinese action against the use of Bitcoin proved that there are too many investors/users involved currently for it to be easily thrown off course. Value did plummet down to circa $400 for a brief period but it soon bounced back and has been trading at $800+ for quite a while now. Litecoin has some value/benefits and apparently those who trade frequently ... and can judge the fluctuations better than most ... sometimes buy Litecoin to use it to buy Bitcoin at a better rate!!!! Dogecoin [or dodgycoin as I prefer to call it] is more of a novelty.

If Bitcoin continues to grow and be accepted as a means of paying for legitimate goods and services, the biggest problem for those banks and governments may be that they can't deal directly with anyone or any group ... as nobody has overall control of Bitcoin and its originator is still an anonymous figure. Obviously he/she/they must be known by family/close friends/business partners but ... unless they suddenly step out of the shadows ... I don't see Bitcoin suddenly being announced as a partner of one of the big banking groups or some other situation where it can be controlled and regulated easily. To take any direct action currently would be to enable and validate it.

“Some days I am an optimistic pessimist ... other days I am a pessimistic optimist”
User avatar
MGV12
 
Posts: 5349
Joined: Wed Jan 23, 2008 4:23 pm
Location: Chiang Mai

Re: Moore's Law on Steroids: Bitcoin Mining

Postby MGV12 » Fri Feb 14, 2014 8:16 pm

Apparently it's not polite to chuckle at such occurrences:

Major Silk Road 2.0 hack costs bitcoin users millions of dollars

Published time: February 14, 2014 01:19

Users who had flocked to the reincarnation of the ‘dark web’ Silk Road marketplace were handed bad news on Thursday when site administrators announced that they had been hacked by users who made off with millions of bitcoin.

The original Silk Road, which was by all accounts a marketplace where users could solicit any number of criminal services anonymously, was first launched in 2011. Founded and operated by a user known only as Dread Pirate Roberts, the site helped popularize the bitcoin crypto-currency and reportedly had trade revenue of $1.2 million USD every month. The site was shut down by the FBI in October 2013, with police alleging that Dread Pirate Roberts is in fact the alias of one Ross William Ulbricht.

While Ulbricht awaited trial on charges including murder-for-hire and narcotics trafficking the Silk Road was relaunched. Yet the site's future was put into doubt again on Thursday when an administrator who identified himself as “Defcon” explained on the site's forums what had happened.

“I am sweating as I write this...I must utter words all too familiar to this scarred community: We have been hacked,” he wrote. “Our initial investigations indicate that a vendor exploited a recently discovered vulnerability in the bitcoin protocol known as 'transaction malleability' to repeatedly withdraw coins from our system until it was completely empty.”

Defcon did not disclose the exact number of bitcoin that was stolen yet Nicholas Weaver, a researcher at the International Computer Science Institute, told Forbes that approximately 4,400 coins were taken, equaling about $2.6 million.

http://rt.com/usa/silk-road-hack-bitcoin-millions-947/

Lurk around in dark areas long enough and you end up "seeing through a glass darkly" perchance.

“Some days I am an optimistic pessimist ... other days I am a pessimistic optimist”
User avatar
MGV12
 
Posts: 5349
Joined: Wed Jan 23, 2008 4:23 pm
Location: Chiang Mai

Re: Moore's Law on Steroids: Bitcoin Mining

Postby sirineou » Fri Feb 14, 2014 11:42 pm

Being a very prolific poster today Mr MGV!
The Medication finally kicked in? :lol: :lol:
I don't like to say "I told you so" but.... I told you so :lol:
Exactly what I said could happen in my initial objection to Bitcoin. Who's to say that the people running Silk Road did not hack their own website?
I wonder if any of the people laundering drug money will complain to the police? :lol: :lol:
I think the people running this website, save good reason to be "sweating" 8) I think instead of running the website, they should be , simply running!!!
I talk to my self because I am the only one who will listen
User avatar
sirineou
 
Posts: 1133
Joined: Wed Jun 03, 2009 9:30 am
Location: USA/Thailand, khon Kaen

Re: Moore's Law on Steroids: Bitcoin Mining

Postby MGV12 » Sat Feb 15, 2014 12:12 pm

sirineou wrote:Being a very prolific poster today Mr MGV!
The Medication finally kicked in? :lol: :lol:

I am eating a lot more seaweed and a lot less uncooked vermin ... can only be hopeful.



sirineou wrote:I don't like to say "I told you so" but.... I told you so :lol:


Yes of course you do :lol: but all being well you will be back to work soon!

You're not the only one who uses that 'told you so' phrase of course ... this guy was quite excited [ :roll: ] about his impressions of 'this new age' nearly three years ago ... and is versing those opinions with a similar eloquence ... he's American and so I guess a friend of yours. For your sake hopefully not a close cousin who calls by :P :P :P



"I haven't made a video in a while" he says ... sounded like the better plan. :) Love and peace.

"gold and silver are the only true currencies in the world" he says ... because they are scarce? .. like diamonds? All it needs is for one of the many groups that are sensible enough to look below the seas for commodities [instead of on the Moon] to find masses of 'precious minerals' and current 'investments' will be worth zip; which is why those who do this work do it in great secrecy so they can slip their finds into the market whilst prices are high. In some countries endangered species are worth more than gold or silver ... as they believe eating them will increase their power ... power to become even bigger pricks! Every 'currency' that exists or has ever existed only has value in the eye of the beholder ... it only has intrinsic value.

The low-life's who look to gain even more from 'intrinsic value' than they could ever spend will eventually do 'a Borg' and are working towards assimilating every source of the number one substance that every one of us needs to even survive. SAFE DRINKING WATER. The world in general is providing them with the funds to take control by paying through the nose for bottled and 'designer' water.



Rant over ----- back to planting and weeding in the garden --- keeping the jungle at bay ... edging towards self-sufficiency. Anyone relate to that?

“Some days I am an optimistic pessimist ... other days I am a pessimistic optimist”
User avatar
MGV12
 
Posts: 5349
Joined: Wed Jan 23, 2008 4:23 pm
Location: Chiang Mai

Re: Moore's Law on Steroids: Bitcoin Mining

Postby schuimpge » Mon Feb 17, 2014 2:25 pm

Self Suffiency, still a far away dream..but working slowly towards it.
4 rai is all I'd need. Low water usage, using hydroponics and/or drip feeding.
Pretty sure you can make a decent amount growing organic with low-investment.
For sure sensors to measure moist/temp/Ph/salinity.
Couple of solar pumps to keep everything running.

Cheers,
Luc
User avatar
schuimpge
 
Posts: 1296
Joined: Mon Dec 10, 2012 11:01 am
Location: Pathumthani, Thailand

Re: Moore's Law on Steroids: Bitcoin Mining

Postby sirineou » Tue Feb 18, 2014 8:35 am

schuimpge wrote:Self Suffiency, still a far away dream..but working slowly towards it.
4 rai is all I'd need. Low water usage, using hydroponics and/or drip feeding.
Pretty sure you can make a decent amount growing organic with low-investment.
For sure sensors to measure moist/temp/Ph/salinity.
Couple of solar pumps to keep everything running.

Cheers,
Luc

I am 56 years old now, I hope to achieve total self sufficiency in 30-40 years, and I will need a much smaller plat of land :lol:
My philosophy is to do what I do best and make money to pay other to do what they do best.Unfortunately I have not found a way to make money being a smartass yet :(
any suggestions appreciated :D

Cheers,
Steve
I talk to my self because I am the only one who will listen
User avatar
sirineou
 
Posts: 1133
Joined: Wed Jun 03, 2009 9:30 am
Location: USA/Thailand, khon Kaen

Re: Moore's Law on Steroids: Bitcoin Mining

Postby MGV12 » Fri Feb 21, 2014 3:48 pm

I have no doubt Sirineou warned everyone about this a while back ... can't currently find the post :mrgreen:

Bitcoin Exchange Prices Plummet as Investors Brace for Bankruptcy

A week after Mt. Gox said it would temporarily prevent customers from removing their bitcoins from its online bitcoin exchange, the site has become the cheapest place in the world to buy the digital currency. Why? Because some investors think Mt. Gox is about to go bankrupt.

Welcome to the world of bitcoin, the Wild West of finance, a place where hackers and scandals and insane price fluctuations are just part of doing business. Mt. Gox, a digital currency pioneer that was once the world’s largest bitcoin exchange, is imploding before our very eyes. Investors who have accounts with the exchange are selling their bitcoins, even though they may have trouble getting hold of the proceeds. That’s because they suspect — not unreasonably — that if the company does go bankrupt, it will be be easier to retrieve their stranded funds as U.S. dollars rather than as bitcoins. The result: bargain bitcoin prices at Mt. Gox, for anyone daring enough to take advantage of them.
The result: bargain bitcoin prices at Mt. Gox, for anyone daring enough to take advantage of them

For the better part of the past year, bitcoins were unusually expensive at Mt. Gox. While other exchanges — BitStamp or BTC-E, for example — traded the digital currency at roughly the same rates, you had to pay a 8 to 10 percent premium on Mt Gox. As we reported back in November, people were charging extra to trade their bitcoins for U.S. dollars because it was hard to get dollars out of the Japanese exchange. But now it’s hard to get bitcoins out too. About two weeks ago, Gox suspended bitcoin withdrawals, blaming a flaw in the bitcoin wallet software that has affected Gox and at least one other exchange.

As a result, something odd has happened. Bitcoin prices have plunged dramatically on Gox, while remaining pretty much level on the other exchanges. On Tuesday, the price of a bitcoin on Bitstamp was $640. On Gox? $250. Investors are speaking through the market, and they’re saying that they’ve lost confidence, according to Donald Marron, director of economic policy initiatives at the Urban Institute, an economic policy think-tank. “It does sound like people worry that they’ll never get their bitcoins out,” he says.

But there’s another explanation for the low bitcoin price on Mt. Gox. Some investors are worried that the exchange will go bankrupt, and if that happens, they think it will be better if the exchange owes them dollars rather than an ill-defined digital currency. “I was advised that if I thought Gox was insolvent, it is better to have a fiat claim against them than a bitcoin claim, which no legal standing,” says one Gox investor, who asked not to be identified. He has about 90 bitcoins locked up in the exchange.
Solvent or Not?

In the end, Mt. Gox may or may not go bankrupt. The company did not respond to inquiries from WIRED, but bitcoin developers who have been working with the company on its software problem say they do not believe that the exchange is insolvent. According to Andreas Antonopoulos, the chief security officer with Blockchain, a wallet-maker that’s been helping Gox fix its technical troubles, it’s likely that hackers were able to steal money from the exchange by taking advantage of a flaw in the Mt. Gox accounting software. The flaw let thieves withdraw money from Gox and then trick the exchange into thinking they had not received their funds — essentially giving them a way of getting paid more than once. But like most bitcoin businesses, Gox says that it keeps most of its funds in offline cold wallets. If that’s true, then there’s only so much that any hacker could take before Mt. Gox administrators would have noticed.

Antonopoulos laid the blame for the crisis in confidence with Mt. Gox CEO Mark Karpeles. “I strongly believe that we don’t have a solvency issue. This is simply a CEO who is in way over his head and doesn’t know how to do communications.” On its website, Mt. Gox says it’s still working on the problem, though it won’t say when it will again allow bitcoin withdrawals.

But if the company is insolvent, investors are responding appropriately. Should the company go bankrupt, it may indeed be easier to get dollars out of the company than bitcoins, says Mark Thompson, a retired bankruptcy lawyer based in New York. “You wouldn’t want to be the first guy to walk in front of a bankruptcy judge with a novel issue,” he says.

According to Thompson, the U.S., bankruptcy courts are likely to favor dollar liabilities over bitcoin liabilities. But he doesn’t know what would happen in Japan, Mt. Gox’s home, and he believes that bitcoin debts could still create some problems in the U.S. For example, courts deal with government backed currencies all the time, but as they’re liquidating assets, how do they figure out what any owed bitcoins are worth? If investors truly think Gox is going out of business and that the price of bitcoin is going to crash because of Gox’s problems, it could make sense to lock in their U.S. dollars right now.

The bitcoin world often moves in mysterious ways. But ultimately, it’s like any other market. People want to maximize their investments.

http://www.wired.com/wiredenterprise/2014/02/mtgox-2/

“Some days I am an optimistic pessimist ... other days I am a pessimistic optimist”
User avatar
MGV12
 
Posts: 5349
Joined: Wed Jan 23, 2008 4:23 pm
Location: Chiang Mai

Re: Moore's Law on Steroids: Bitcoin Mining

Postby sirineou » Fri Feb 21, 2014 5:11 pm

MGV12 wrote:I have no doubt Sirineou warned everyone about this a while back ... can't currently find the post :mrgreen:


http://www.wired.com/wiredenterprise/2014/02/mtgox-2/

Post 970
I said and I quote:
" who is in control of the algorithm? who can guarantee me that the algorithm is not manipulated? how can anyone know if it is manipulated ? Who can guarantee me that the system can not be hacked and manipulated? I don't pretend to understand a lot about it, but what little I know
makes me apprehensive,it sounds to my like a Holland tulip bubble." :D
I talk to my self because I am the only one who will listen
User avatar
sirineou
 
Posts: 1133
Joined: Wed Jun 03, 2009 9:30 am
Location: USA/Thailand, khon Kaen

PreviousNext

Return to general

Who is online

Users browsing this forum: No registered users and 1 guest

cron