Cryptocoin Mining?

[arkcom]

Looks like it's bottomed out and rebounding, at least short term.

Well, I was right for almost an hour...

 

[AyashiKaibutsu]

Put the 460gtx I replaced with a 270x in my old rig into my main one so now I can have it mining side by side with my 770gtx... Getting 100kh/s on top of the 350 my 770gtx gets. Probably only worth it considering I don't pay for power...

 

[IEC]

Uh oh, testing $400 per BTC...

 

[pandemonium]

Yup, doesn't appear that the community will allow it to go below $400. Time will tell if it holds that floor or not.

 

[holden j caufield]

I feel sorry for the peeps with coins on mtgox but wtf that one exchange can go down and this is what happens to btc? Something is wrong in the ecosystem if this can happen. It'll recover but what happens when another exchange falls.

 

[pandemonium]

This already happened with MtGox previously, and also seen when BTCChina dropped out. Panic sets in and drops the prices dramatically.

It's the difference of a commodity and a currency, and we'll see this until it's more of a currency in the future. It's being integrated slowly as a currency, so it'll happen eventually.

 

[x3sphere]

http://www.reddit.com/r/Bitcoin/comments/1yv26o/gox_horror_story_thread_how_much_did_you_lose/

I'm shocked at the amount of people holding so much BTC in Gox. Hopefully it's not all lost, but seriously... I get the feeling these people didn't do their research before investing into Bitcoin.

 

[slashbinslashbash]

From the above linked document, supposedly leaked from MtGox, and which seems believable IMO.

At this point 744,408 BTC are missing due to malleability-related theft which went unnoticed for several years. The cold storage has been wiped out due to a leak in the hot wallet.

...

Mt Gox Liabilities: 55,000,000 USD + 744,408 BTC

http://www.scribd.com/doc/209050732/MtGox-Situation-Crisis-Strategy-Draft



This was kinda the worst-case scenario that ran through my mind when Gox blamed their problems on the malleability thing. A lot of coins stolen through malleability and poor security/double-checks on withdrawals. The numbers are staggering, though. To think that they pissed away all those BTC through fraudulent withdrawals! How could they not have caught it? Was it simply automated? That seems unlikely.

Also, how could they not notice that their unfunded liabilities were growing so large? You'd think by the point that their balances were off by a couple thousand BTC, they would realize this and start an audit? GAAP anyone? Double-entry bookkeeping? Checks and balances?

Also... WTF is the fiat liability from? Surely USD/JPY/etc. was not also stolen?

Hmmm... I'm wondering if this might not be a purposely-leaked document, which conveniently explains everything away, while the perpetrators get off looking like incompetent fools, but at least not criminals...

I'm also wondering if it is just going to fail or if somebody with deep pockets will step in and buy Gox and make everybody whole. "Satoshi Nakamoto" supposedly has around has 1M BTC.

 

[x3sphere]

China is buying up most of the BTC at these prices, very interesting:

http://fiatleak.com/

 

[pandemonium]

As much of a dick I'll be saying this, I honestly don't feel sad for people that had a lot vested with MtGox.

We just had a worldwide financial crisis caused by an overzealous banking system and irrational brokers. You'd think people would learn to question these things prior to signing their names to something. This isn't Monopoly, where you can flip the board over in a fit of rage and say, "oh well, game's over."

#1 rule of investing - never use more funds than you can easily let go of
#2 rule of investing - research, research, research

 

[slashbinslashbash]

Well, I just bought 1BTC at $475. I will buy another if it hits $375... and another at $275... and several at $175... and back up the truck at $75. I think this is just a temporary hiccup. This doesn't affect the fundamentals of the currency at all.

As much of a dick I'll be saying this, I honestly don't feel sad for people that had a lot vested with MtGox.

We just had a worldwide financial crisis caused by an overzealous banking system and irrational brokers. You'd think people would learn to question these things prior to signing their names to something. This isn't Monopoly, where you can flip the board over in a fit of rage and say, "oh well, game's over."

#1 rule of investing - never use more funds than you can easily let go of
#2 rule of investing - research, research, research

It just shows what a few morons can do when they are trusted with your money. Would anybody reasonable trust a few 20-something geeks to run a bank in the real world? Why should a Bitcoin bank be any different?

NEVER trust your funds to an online wallet or exchange. ALWAYS keep them in a wallet to which you control the private keys, which are encrypted. As soon as you are done exchanging coins on an exchange site, cash them back out. Don't leave them overnight, don't leave them for a few hours... if you are not actively trading, they should be in your wallet. Get them back immediately.

 

[24601]

Hopefully this is the last time we get Goxed hard.

Gox better die forever.

I'm surprised somebody didn't assassinate Karpeles the last thousand times we got Goxed, as these are very, very moneyed peoples.

 

[pandemonium]

Would anybody reasonable trust a few 20-something geeks to run a bank in the real world? Why should a Bitcoin bank be any different?

You value bankers far too much, lol. And yes, there are plenty of 20-something bankers out there already making mistakes that the public would find appalling.

 

[3DVagabond]

China is buying up most of the BTC at these prices, very interesting:

http://fiatleak.com/

You'd think that all that currency getting dumped in would sure up the value, but it's not really doing anything. It's actually still slowly dropping.

 

[DominionSeraph]

Hopefully this is the last time we get Goxed hard.

It's a currency that just asks for theft. Once transferred, you can't get it back. Anyone who handles other people's money is going to be constantly faced with the temptation. Create a new address, transfer it over, it's yours. Transfer it between a few addresses, it's laundered.

 

[pandemonium]

The blockchain would like to have a word with you.

 

[Dr. Zaus]

It's a currency that just asks for theft. Once transferred, you can't get it back. Anyone who handles other people's money is going to be constantly faced with the temptation. Create a new address, transfer it over, it's yours. Transfer it between a few addresses, it's laundered.

I had 1.5 btc in an online wallet, that company stole my money and disappeared shortly there after. This was before bit coins were worth a dollar.

 

[24601]

It's a currency that just asks for theft. Once transferred, you can't get it back. Anyone who handles other people's money is going to be constantly faced with the temptation. Create a new address, transfer it over, it's yours. Transfer it between a few addresses, it's laundered.

I'm talking about the market crashes, not the protocol.

It was obvious, you're just being obtuse.

 

[DominionSeraph]

The blockchain would like to have a word with you.

Yes, you can watch as your coins go on their merry way, saying, "We're not yours anymore!"
Knowing what address they're at doesn't pin the theft on anyone. If they transfer between a few addresses, even if you catch someone spending them you can't prove that they weren't the unwitting recipients of the stolen currency.

I'm talking about the market crashes, not the protocol.

Exchanges are going to be open to theft. If trades are not done by escrow you're going to have people playing the market through reneging.

 

[Kippa]

When a manufacturer makes a gaming gpu card and gives a warranty on it for say 12 months, they're probably assuming that the card isn't going to be hammered 24/7 every day of every month. Now that quite a lot of people are hammering their card literally all the time doing gpu bitcoin mining, could this have and adverse effect on the warranty of newer up coming gfx cards? Maybe only have a 3, 6 or 9 month warranty instead of 12?

 

[Rebel44]

When a manufacturer makes a gaming gpu card and gives a warranty on it for say 12 months, they're probably assuming that the card isn't going to be hammered 24/7 every day of every month. Now that quite a lot of people are hammering their card literally all the time doing gpu bitcoin mining, could this have and adverse effect on the warranty of newer up coming gfx cards? Maybe only have a 3, 6 or 9 month warranty instead of 12?

Not in EU - we have minimum 24 months waranty by law.

 

[KlokWyze]

man... bought 1 BTC @ $580 through coinbase last week. Deposit is taking forever. If it does drop lower I will likely buy more. If it drops THAT much lower I'll be joining the hoardes of people selling their GPUs. I do think we will see high values again. Panic buys are just as common as panic sells. Maybe I'm just trying to remain positive though? lol....

 

[GRAFiZ]

Funny thing is, this proves, without a doubt that "virtual currency" is a terrible investment. This sort of thing will happen again and again.

But yet, in a few weeks time, everyone will go right back to their happy little world where they believe they're gonna "get rich easy" with video cards.

It's all so stupid and it's time everyone stops falling into this trap.

 

[frowertr]

Terrible investment? Tell that to the people that mined LTC and BTC when it was under $1. They will laugh in your face.

 

[GRAFiZ]

Terrible investment? Tell that to the people that mined LTC and BTC when it was under $1. They will laugh in your face.

There are exceptions to everything.

I'm just concerned for people, not just here, but personal friends I have whom have invested their savings into cryptocoins. both through hardware purchases and direct acquisitions.

It's simply too risky. It should not be rewarded nor recommended.