Bitcoin crash coming (2 Viewers)

$10K+ per year with 5 cards?!? Sign me up!


The GTX 1060 6GB earns between $2.50-3.50/day and the GTX 1080 8GB is snagging me $4.50-6/day

Prices will fluctuate as the market fluctuates, so there's no guarantee it'll remain the same. But yeah, I'm going to run these puppies 7 days/week and make some extra scratch. I've even considered the possibility of going bigger than that, but it's hard to acquire graphics cards at the moment for a reasonable price. But if I can get them at MSRP and have them pay for themselves in a little over 3 months I'm going to do everything I can to maximize on that.
 
Ditto, same questions.

Are you actually receiving a real payback, or are you spending money for a virtual return that may actually be worthless (now or in the future)? And if converting to cash now, what kind of real cash transaction fees are incurred in doing so (lowering the effective return rate)?

Depending on what I want to do I hold some coins, or convert them to others/like BTC or ETH which can easily go to fiat.


That seems low for 10 of the top tier graphics cards. I'm going to run 5 lesser cards (GTX 1060 and four GTX 1080 non-Ti's) and make $28-30/day so not sure what you're using to mine but seems like you're getting shafted?

I'm paying 0.08673 for my electricity fwiw. I'm using Nicehash which is a software program that will determine the most profitable cryptocurrency for your specific rig to mine at the time and switch automatically for you. So while you're paid in Bitcoin your system is mining other coins in actuality.

The payments go into my Nicehash wallet and then they permit you to transfer to your Coinbase wallet for free. From there I can convert the Bitcoin to US Dollars for a small fee (for example right now I could switch $40 bitcoin into $40 USD for a $1 fee. Then you transfer from Coinbase back to your bank account with no fee associated with that)

Nicehash is generally depositing from my mining account into my wallet every couple of days, and I've had zero issues moving money from there to Coinbase and then back to my bank account.

Currently slam mining ZCL (and have been for a while) with news of the BTC hardfork to get my hands on some BTCP, so I'm voluntary taking a lesser rate in exchange for the possibly that ZCL/BTCP will be huge. Already up very large on ZCL as I bought a bunch just as the news was released of the fork, so I'm trying to acquire as big of bag as possible.
 
This is where I get lost as well. I think I may have an inkling of whats going on now, and please correct me if this is wrong.
Will do.
"Mining" is simply the act of using your computer to solve the math of blockchains.
Yes, but I dislike the word "sovle," becuase it's really just doing the same thing over and over and trying to get lucky.
Blockchains are what Bitcoin uses to verify and secure transactions.
Very close. Blockchains are where the ledger of secured transactions are kept.
If your computer solves a blockchain math problem (bitcoin discovery), you're rewarded with a brand new bitcoin, or some fraction of a brand new bitcoin. Not sure which.

Close, again. If your equipment solves it and you're mining solo, you get 12.5 bitcoins. Most people mine as part of a pool and share in the proceeds when anyone in the pool hits, so they get fractions. Odds of hitting when mining solo? Damn close to zero. That's why people mine in pools.

Also, your computer can't mine for Bitcoin. It's only mineable (profitably) on specialty equipment - ASIC miners - which are expensive and hard to get. You can mine Bitcoin Gold (a variant designed to exclude ASIC miners and run on computer GPUs) or some other cryptos on your computer, though.

Mining bitcoin is "free," beyond the cost of equipment and electricity to run it.
Yes.
Bitcoin that have been "discovered" are what people are using for transactions, or buying and selling on the open market, causing the fluctuations in price.
Yes. Every Bitcoin in circulation was originally mined. When the second block was mined in 2009, the first 50 bitcoins were created as the reward. (The first block, the Genesis Block, intentionally burned the 50 bitcoins that would have been the reward.)

Price fluctuations are entirely market-driven.
There are only 21 million bitcoins in existence, and the discovery of new ones gets harder as more are mined. This is by design.
No - there will be almost 21 million max, but they haven't all been mined yet. About 16.83 million have been mined so far. The per-block reward is now 12.5 bitcoins; it gets cut in half roughly every four years. Last coins will be mined approx 2040, but the mining reward will be trivially small long before that.

So new coins appear less frequently over time... but they are not "harder" or even "discovered" in the sense that the reward happens every ten minutes, on average.
The difficulty and processing power required to solve blockchains these day is beyond the capabilities of a personal computer, so it's mostly being done by large server companies.
Not quite. The existence of ASIC miners has driven up the difficulty for Bitcoin mining, and ASICs are only made, sold, and distributed by a tiny handful of players. You either have an in or pay exorbitant amounts. If it weren't for that, it would still be accessible to individuals. But ASICs don't work for everything. They work on the specific algorithm used for Bitcoin's Proof of Work. Different Proof of Work algorithms can't be done on ASICs. When Bitcoin was created in 2009, there were no ASICs. That's actually the impetus behind the formation of Bitcoin Gold last year, which uses an algorithm that can't be mined on ASICs.
So my question is:
Since the security and verification of bitcoin transactions are reliant on people mining bitcoin, what happens to the currency when either all bitcoins have been mined, or the difficulty is no longer worth the effort? How do the blockchain problems get solved when not enough people, or nobody is mining bitcoins? Does the currency just become worthless?

No, the process also includes a mining fee which people can voluntarily add to their transaction to "prioritize" it. Whoever mines the block gets the mining reward PLUS the fees attached to all the transactions mined.

When the block is crowded, this is currently used to get priority (or else you may wait many blocks before your transactions is confirmed in a block). When the mining reward eventually gets low, the addition of small fees to transactions will substitute for the reward.
 
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Are you actually receiving a real payback, or are you spending money for a virtual return that may actually be worthless (now or in the future)? And if converting to cash now, what kind of real cash transaction fees are incurred in doing so (lowering the effective return rate)?

The biggest "reward right now" in GPU mining is sometimes a speculative coin, but sometimes a coin with staying power. It helps to know which is which.

Dumping for fiat (like US Dollars) is safer with the speculative coins, but as in poker, some long shots pay off big.

The cost of moving coins around on the major exchanges is nominal to me, as is pulling dollars into my bank account - but if you're moving/trading small quantities, it may add up.

For example, trading fees many places are only 0.25% (or less for limit orders), and crypto deposits are free, but they may charge for crypto withdrawals. I generally go fiat through GDAX, which does ACH transfer into my bank account for no fee.
 
$10K+ per year with 5 cards?!? Sign me up!

Those were GOOD days! There are also BAD days!

It's a little like poker... some people run good and think they're poker geniuses right away. It's easy to fall into that trap when you start mining at the right time.

You can also mine some coin that later skyrockets if your luck is good (been there) or that collapses if your luck is bad (been there.) Or you can shift all your coin into a single asset, watch the others skyrocket, and wish you stayed in.

Yeah, it's a lot like poker.
 
Right now miners are paid a combo of some of the bitcoin block plus transaction fee. When there is no more bitcoin to mine then they will be paid via transaction fees.

https://www.bitcoinmining.com/bitcoin-mining-fees/
Okay, that makes a bit more sense.

Will do.

Yes, but I dislike the word "sovle," becuase it's really just doing the same thing over and over and trying to get lucky.

Very close. Blockchains are where the ledger of secured transactions are kept.


Close, again. If your equipment solves it and you're mining solo, you get 12.5 bitcoins. Most people mine as part of a pool and share in the proceeds when anyone in the pool hits, so they get fractions. Odds of hitting when mining solo? Damn close to zero. That's why people mine in pools.

Also, your computer can't mine for Bitcoin. It's only mineable (profitably) on specialty equipment - ASIC miners - which are expensive and hard to get. You can mine Bitcoin Gold (a variant designed to exclude ASIC miners and run on computer GPUs) or some other cryptos on your computer, though.


Yes.

Yes. Every Bitcoin in circulation was originally mined. When the second block was mined in 2009, the first 50 bitcoins were created as the reward. (The first block, the Genesis Block, intentionally burned the 50 bitcoins that would have been the reward.)

Price fluctuations are entirely market-driven.

No - there will be almost 21 million max, but they haven't all been mined yet. About 16.83 million have been mined so far. The per-block reward is now 12.5 bitcoins; it gets cut in half roughly every four years. Last coins will be mined approx 2040, but the mining reward will be trivially small long before that.

So new coins appear less frequently over time... but they are not "harder" or even "discovered" in the sense that the reward happens every ten minutes, on average.

Not quite. The existence of ASIC miners has driven up the difficulty for Bitcoin mining, and ASICs are only made, sold, and distributed by a tiny handful of players. You either have an in or pay exorbitant amounts. If it weren't for that, it would still be accessible to individuals. But ASICs don't work for everything. They work on the specific algorithm used for Bitcoin's Proof of Work. Different Proof of Work algorithms can't be done on ASICs. When Bitcoin was created in 2009, there were no ASICs. That's actually the impetus behind the formation of Bitcoin Gold last year, which uses an algorithm that can't be mined on ASICs.


No, the process also includes a mining fee which people can voluntarily add to their transaction to "prioritize" it. Whoever mines the block gets the mining reward PLUS the fees attached to all the transactions mined.

When the block is crowded, this is currently used to get priority (or else you may wait many blocks before your transactions is confirmed in a block). When the mining reward eventually gets low, the addition of small fees to transactions will substitute for the reward.
Thanks for clearing up my misconceptions. It's becoming clearer now what's going on. It's so hard to find plain English explanations. You guys are a wealth of information.
 
I've been waiting for a couple of weeks for the market to do something interesting. Now finally the price of bitcoin is dropping, around 10K at the moment. Hoping we can get to 5-8K so I can scoop up a whole shiny coin of my very own and then watch it grow throughout the rest of the year :)
 
Lol, let it dip, buy it up and then watch it rise and profit my man!

I've been buying on these down swings, running out of funds for buys! Need more up to skim the profits out! What's coins are you holding out of interest? Anything besides BTC/ETH?
 
Did you guys see the news about FB killing crypto ads? I wonder what it will do to the market when less fish are biting.

Yeah, without getting too far into the politics of it, they screw with the election, but object to crypto. Oy vey!
 
What's coins are you holding out of interest? Anything besides BTC/ETH?


BTC
ETC
LTC
NEO
DASH
XRP
XVG

Some of those are just to try and take advantage of the pump and dumps that occur on coins that likely won't be around long-term, but are being bought up by the uninitiated because they're cheap and hoping it'll 1000x and they can retire :p

I'm also watching:

XMR
VEN
IOTA
ADA
TRX

Trying to catch them on a low and scoop some up, but my buy orders haven't had their price targets met yet.
 
it's dropping! Bitcoin down to 9600 right now, Etherium at $1030, c'mon baby, keep those drops coming, daddy wants some discount crypto!
 
That seems low for 10 of the top tier graphics cards. I'm going to run 5 lesser cards (GTX 1060 and four GTX 1080 non-Ti's) and make $28-30/day so not sure what you're using to mine but seems like you're getting shafted?



.

Calculators aren't all that accurate and right now the market is in the dumps so profits are much lower.

I was making $60/day mining with a bunch of 1070's, 1070TI, etc... now I've added a couple additional cards and my daily profits are down to $40-$45/day... if it was a month ago I'd probably be $75+/day

1080TI was making $9/day easily before, now it's down to $7 or less
 
I'm making $9/day with two cards mining, how are you only making $40-45/day with 22 cards in the mix? I'm using Nicehash for my mining btw
 
I'm hoping it hits 5-8K but I don't think it will give given the current patterns, the buyers are fighting it pretty strongly to keep it from plummeting too far at the moment.
Okay, so you have a price target. But at what price do you pucker? When do you bail? If it crashes to $500 do you jump and salvage or hold on?

I only ask because I've played in the penny stocks for healthcare companies waiting on FDA approval. Not much money, but huge upside. Most recent was Delcath. Invested $300 and it shot up and I made some decent money. I didn't sell and it has since crashed. I didn't have an exit strategy. Granted buying a bunch of computer equipment couldn't make me shares of stock, so not exactly the same - but it's close.
 
I have about 2K actively involved in the market and another 7K sitting as USD in my coinbase to jump on the right price of Bitcoin or Etherium.

I have no intentions of bailing. I'm diversifying my coin collection between long-term holds and short-term ones that I'll try to trade more frequently during swings.
 
I guess I should have left out the two 1060's and one 1050TI as those are still being delivered..and the 1080TI is in a shared PC with a friend so I don't count it in personal earnings... so I'm more like 18 cards I guess.

1080 is 33% faster than a 1070, btw :)
 
Okay, so you have a price target. But at what price do you pucker? When do you bail? If it crashes to $500 do you jump and salvage or hold on?

I'm holding til zero or til I'm happy with my returns... at no point will I "salvage what's left" when I am down 50% or more... this is still a very young market and unless there are clear signs that things will not turn around, things usually turn around. (See: Bitconnect)
 
1080 is 33% faster than a 1070, btw :)


I have a 1080 8GB and 1060 6GB mining and then three 1080 8GB's coming in another week or so. I expect with just my five cards to be making around $28/day, so I'm baffled that you're bringing in so little with all those cards in the mix. How are you mining? What program are you using?
 
Bitconnect was painfully obvious for a scam, it's been done so many times before. I think I heard about a USI-Tech or something trying something similar and I would challenge people online pushing it because they were either ignorant or complicit in the scam
 
I have about 2K actively involved in the market and another 7K sitting as USD in my coinbase to jump on the right price of Bitcoin or Etherium.

I have no intentions of bailing. I'm diversifying my coin collection between long-term holds and short-term ones that I'll try to trade more frequently during swings.
I'm holding til zero or til I'm happy with my returns... at no point will I "salvage what's left" when I am down 50% or more... this is still a very young market and unless there are clear signs that things will not turn around, things usually turn around. (See: Bitconnect)
Understood. What indication would point to a sign things wouldn't turn around?
 
I have a 1080 8GB and 1060 6GB mining and then three 1080 8GB's coming in another week or so. I expect with just my five cards to be making around $28/day, so I'm baffled that you're bringing in so little with all those cards in the mix. How are you mining? What program are you using?

I'm using Nicehash. It can be $60/day at one point then $45/day another, the more cards you add the greater the discrepancies can be... my stats page said $36/day 10 minutes ago, I just refreshed and it's $43 now... nicehash is changing algorithms very often right now...
 

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