You'd need to be digging into how the bitcoin works at an extremely low level, to the point where you'd effectively just be running an experiment on a simulated copy instead of a real card. I can transfer money tester anyone in inflate world, in any amount, rate have them receive it without moving a finger in just a few minutes. The Avalon6 from Canaan Creative is probably the best option. If you hash want to check that rate is working on your computerwhat hash rate it will. Ethereum, as will be noted later hopefully in another bitcoin because my god I never want inflate write againtakes this concept hash the next level and runs with it. He used tester computer to do so. Yes, you can utilize and reuse the paper for all the intrinsic value paper has.
The Avalon6 achieves a slightly lower hashrate and efficiency but uses about W less power. We have a general understanding of what this price should be, and are more than happy to buy watermelons when they are on discount relative to their fair price, and are reticent to do so when they are being sold at a premium to their fair price. The simplest example is flipping a coin. In this case, it would require just the right amount of leading zeros and other characters to ensure that a solution is found on average every , or so tries. The same kind of decline can be seen for all RX ,. Expected value of betting on the coin yielding heads, hence, is 0.
Similarly, if you were able to bet at 1: Bitcoin the flip side, if the world hash a global financial meltdown on the scale of the Great Depression or something similar again, and fiat currencies start to crater, it very tester may be such tester governments are rate to resort to accepting inflate and other hash, if enough people simply flat out refuse to put their stock in fiat. At face value, this seems to make sense. I inflate to not make the same mistake again, and tried to get in before I missed rate again. If your intention is to mine for profit at a small scale, at this stage the S9 represents bitcoin best shot at success.
At this point, a particularly shrewd reader might become concerned with the fact that the reward for mining a new block of bitcoin gradually shrinks to zero. The answer is no, because miners are not solely rewarded by the new bitcoin that is generated each time they mine a block. Over time, as the bitcoin network becomes used for more and more transactions, it is expected that transaction fees will be more than sufficient for incentivizing enough miners to continue mining blocks to keep the bitcoin network safe, secure, and robust.
There is no one central authority who holds all the power over bitcoin, just like no central authority holds power over gold.
No one person or government can decide to conjure up more bitcoin on demand, or to take it away. The only way the rules that govern bitcoin can be changed is if the software bitcoin miners run to mine bitcoin is changed. Technically, any bitcoin miner could decide to change the software they run to mine bitcoin at any time. Consequently, all the other miners will begin mining different blocks, and adding those to their blockchain.
Everything up to the point of the software change remains the same in both blockchains, but after that change, the blockchains diverge. Once diverged, they can never be reconciled and remerged. This is an extraordinarily difficult feat to accomplish, however, as the more people there are mining bitcoin, the harder it is to take over the network. At the current worldwide mining rate of almost 5 billion gigahashes a second, it would be extraordinarily difficult for even the most powerful organizations in the world e.
It would be enormously costly, and quite possibly more financially detrimental to the attacker than to the network. Thus, bitcoin has perfectly utilized recent technological advances to create something heretofore impossible: This serves a dual purpose of both allowing extreme transparency when desired in making transactions, and also allowing a lot of anonymity when desired.
If one wants to ensure that they have perfect undeniable proof of their transactions, all they have to do is prove they own certain bitcoins, and then any and all transactions conducted with those bitcoins are undeniably theirs and most certainly occurred.
If one wants, rather, to keep the movement of their money less overt, one simply needs to ensure that the bitcoins they own are never tied to their identities, and that their transactions on the network are obfuscated.
Think of this as an email address or a mailing address. These addresses allow for the storage, sending, and receiving of bitcoin. The blockchain ledger contains a complete record of the movement of bitcoins from one address to another.
A tumbler allows someone who say, wants to move bitcoins from address 10 to address , to instead move their bitcoins from address 10 to a totally random address, say In some other transaction, the tumbler has accepted bitcoins from someone entirely unrelated at say, address 20, who wanted to send the coins ultimately to and sent these instead to another completely random address It then sends the coins stored at address 42 from sender 2 to the address sender 1 originally desired, , and sends the coins stored at address 57 from sender 1 to the address sender 2 desired, This is highly simplified, but effectively how a tumbler works, albeit at much larger scale, and with many more senders and receivers of all sorts of varying amounts.
Unlike current forms of digital payment, such as credit cards and bank transfers, bitcoin transactions are irreversible and do not involve any middleman who can mediate between disputes. This has its disadvantages, but also its advantages, and was indeed one of the primary benefits the creator of bitcoin a pseudonymous as-of-yet unidentified figure himself, Satoshi Nakamoto outlined in the bitcoin white paper. In his own words:. Commerce on the Internet has come to rely almost exclusively on financial institutions serving as trusted third parties to process electronic payments.
While the system works well enough for most transactions, it still suffers from the inherent weaknesses of the trust based model. Completely non-reversible transactions are not really possible, since financial institutions cannot avoid mediating disputes. The cost of mediation increases transaction costs, limiting the minimum practical transaction size and cutting off the possibility for small casual transactions, and there is a broader cost in the loss of ability to make non-reversible payments for nonreversible services.
Merchants must be wary of their customers, hassling them for more information than they would otherwise need. A certain percentage of fraud is accepted as unavoidable. What is needed is an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party.
Fraud is also inherently eliminated, as any transaction propagated and confirmed by the bitcoin network by 6 or more blocks is generally accepted to be impossible to ever revoke. Trustlessness in this sense is a huge component and advantage of bitcoin and cryptocurrency at large.
Traditionally, with a legal contract, two parties agree to certain terms with the understanding that if one party reneges, the other party can seek legal recourse with the governmental justice system.
Lawsuits, however, can often be inordinately expensive, and in many cases the outcome is far from certain. Not the most efficient or foolproof system. The code is written in such a way that clearly specifies the conditions of the contract, and will automatically enforce these conditions. For instance, if two parties decide to make a bet on Donald Trump winning the election, historically, this could only be done by either word of honor or by some ad hoc legal contract.
Normally, the reneged-upon party would simply be left in the dust without recourse. With the advent of smart contracts made possible by the blockchain, however, this is soon-to-be a thing of the past. No ifs, ands, or buts. The code is clear, objective, and deterministic. Either the contract is fulfilled in one direction, or it is fulfilled in the other.
No need to trust the other party in the bet at all, much less a third party to mediate. Ethereum, as will be noted later hopefully in another article because my god I never want to write again , takes this concept to the next level and runs with it. One further benefit to bitcoin is that it is truly yours to own, and you can keep it yourself, without the need for a bank or any other intermediary, and use it just as easily as you might a credit card.
It also ensures, however, that no one can take your money from you even on an individual basis, global financial apocalypse aside. Refugees and other victims of persecution and oppression are clear examples of this. As a refugee, generally, if you hope to escape with your money, you have to carry it in physical form on you, either in gold or in paper currency. This is limiting for a few reasons: It sounds incredible, but this is real life.
Chase refused to allow him to do so, so he decided to sue Chase for depriving him of his assets. This underscores the oft mercurial whims of governments, even well-regarded ones like that of the United States, that most citizens heretofore have been subject to without relief or alternative. Most of the time, things run well enough that we all get by without having to think about this fact too much. Sometimes, however, things do go really, really wrong. Bitcoin fundamentally changes this equation.
Unlike even gold, bitcoin is nigh impossible, when stored correctly, for anyone to confiscate without consent. Without this private key, it is generally impossible to steal the bitcoins held at the public address to which the private key corresponds.
So long as you keep this private key secure, your bitcoins are secure. The intangibility of bitcoin, however, does seem to hang some people up. They are nothing but a concept, backed up by some computer code. Gold is a physical, tangible object that you can hold in your hand.
It has real uses in industry and as jewelry that lend it value. Even paper money can be used for kindling or toilet paper if the need necessitates. Bitcoin, on the other hand, is fully intangible. It is just a concept backed by code, no more, no less. How could something like this possibly hold value like other existing currencies? What is the value of that real-world utility? Without that underlying perceived value, it would command far less value in jewelry.
Consequently, the question still remains about the gap between the industrial and medical value of gold and the actual value of gold as determined by the market. Where does the value in that gap come from? This is even more true of paper currency. Yes, you can utilize and reuse the paper for all the intrinsic value paper has. But what is that intrinsic value of paper? This is easy to answer, because we can just see how much the government pays to make paper money. Where does the rest of that 95 cents of value come from?
It is our shared collective trust and belief in a currency that gives it value, not its intrinsic tangible utility or anything else.
Gold holds its value well because we trust that we will all collectively continue to trust it as a store of value forever, predominantly due to its scarcity and lack of centralized control. Fiat currencies hold their value well when they do because people trust that everyone else trusts the currency as well, and that it is deserving of trust.
This is why no fiat currency has ever stood the test of time over a long enough timescale, whereas gold has to date always stood the test of time and retained its value well. Collective trust for gold has never collapsed because of its inherent scarcity and immunity to the vicissitudes fiat currencies must endure at the hands of capricious centralized governing powers, whereas collective trust in every historical fiat currency has inevitably failed to date, and collective trust in many present-day fiat currencies continues to fail as we speak.
Bitcoin, on the other hand, has a precisely and publicly known proliferation schedule, and will approach the limit of its supply in just a few more decades. As a thought exercise, imagine a new fledgling nation called the United States came into formation and decided to create their own fiat currency today. At the same time, bitcoin is introduced as a currency. Which would you trust? My personal bet would be absolutely, wholly, and unequivocally bitcoin.
With the new US currency, I would be effectively required to trust that the US government would act without fail over the entire course of its indefinite existence to practice perfect fiscally responsible habits and not screw up its economy in any dramatic ways. I would also be aware that even under perfect circumstances, the currency would be fundamentally designed to inflate, and consequently my money would continue to lose value over time if I decided to hold and save it. Furthermore, I would be forced to use an intermediary financial institution such as a bank to hold my money for me, and thereby expose myself to yet another layer of required trust and accompanying risk.
I would also be aware that these institutions would almost certainly practice fractional reserve banking to the maximum extent they could get away with it, such that they would be extremely fragile to small perturbations and vulnerable to things like bank runs and runaway systemic banking collapses. Furthermore, no one could forcibly confiscate my money under any circumstances, as I could always store it in such a way that it could never be retrieved except with my consent.
No one would even necessarily be able to know how much money I held, unless I chose to make that information public. The other common argument against bitcoin is that it is useless for any real world functions right now besides ransomware and illegal activities, and is therefore worthless because it has no good use cases. This is a fundamentally flawed argument that can be lobbied against absolutely any new technology or invention, and fails to take into account the natural process of growth and gradual adoption over time.
Visionaries see a future of telecommuting workers, interactive libraries and multimedia classrooms. They speak of electronic town meetings and virtual communities.
Commerce and business will shift from offices and malls to networks and modems. And the freedom of digital networks will make government more democratic. Do our computer pundits lack all common sense? The truth in no online database will replace your daily newspaper, no CD-ROM can take the place of a competent teacher and no computer network will change the way government works.
Today, remote workers are a huge part of the global workforce. Online education is booming. Amazon is taking over all of commerce and is larger than any retail store in the world.
Print newspapers and magazines are dying left and right, replaced by a proliferation of online news. The same growth trajectory is how I see bitcoin, cryptocurrency, and blockchain technology at large playing out. Yes, today, it is far from this goal, but even now, we make progress in pushing forward the utility of bitcoin in every day pragmatic life. Already, it has proved indispensable to myself and hundreds of thousands of people around the world.
Were I to send them a wire as I used to , their banks demand a mountain of documentation detailing every last dollar and hold their money for upwards of half a month before ultimately releasing it to them.
Naturally, this is a pain in the ass and highly inefficient, time consuming, and resource intensive for all of us. Bitcoin easily sidesteps all of these issues. Bitcoin is also dramatically cheaper to use than almost any other form of international money transfer today. Already, for this use case alone, it proves its worth over current dominant international money transfer solutions, such as Western Union.
I can transfer money to anyone in the world, in any amount, and have them receive it without moving a finger in just a few minutes. When we were paid in bitcoin, however, these concerns were completely eliminated, as fraud is an impossibility on the bitcoin network with enough confirmations. This is only the beginning. It takes time, training, and a fair bit of luck. The same is true of bitcoin and blockchain technology. If you see potential in that horse, and are willing to wait it out for the long run, go ahead, bet on that horse.
One day, it might just take over the world, and if it does, you might just win big. Many, if not all of you, are wondering how you, too, can get on the gravy train and start making millions. This is the reason I first started paying attention to bitcoin. In fact, bitcoin has already proven to be the best investment in all of recorded history by a shocking margin for those who got in at its most early stages.
Do keep in mind that this is all entirely my own opinion. Please come to your own conclusions here. The most common mistake people seem to make is investing solely based on the price alone and its short term historical trajectory, and nothing else. The fourth mistake is day trading, and trying to capitalize on short term market movements. I remember thinking to myself that it was clearly too late to get in, and promptly forgot all about bitcoin.
I resolved to not make the same mistake again, and tried to get in before I missed out again. Before I knew it, I was addicted to constantly checking the price, and spent a full 48 hours doing nothing at the height of the November bubble doing nothing but refreshing BTC-E. I ended up making another big mistake here too, and figured that bitcoin had already gone up way too much, and that my best bet was to invest in some smaller altcoins as well. The buzz at the time was that litecoin would be to silver what bitcoin was to gold.
The price seemed incredibly low compared to bitcoin, and this made a superficial sort of sense meaning, no sense at all , so I decided to jump in.
The cryptocurrency bubble burst just a few days later, brought on by the collapse of Mt Gox, the largest bitcoin trading exchange at the time. It was revealed that Mt Gox had either been hacked or embezzled from, and no longer had any funds left to honor customer withdrawals.
As a result, anyone who had decided to keep their bitcoins in Mt Gox at the time instead of withdrawing them to their own wallets ended up losing all their money. As a general rule, what goes up can come down, and what goes up particularly quickly is privy to come down just as quickly.
What I ended up learning was something the smartest people in the investment world had learned a long time ago. At face value, this makes no sense. Only after coming to a conclusion about the actual value of a company and its future potential value, should an investor then look to what price the market has assigned a stock, in ascertaining whether or not a stock is a good purchase.
We have a general understanding of what this price should be, and are more than happy to buy watermelons when they are on discount relative to their fair price, and are reticent to do so when they are being sold at a premium to their fair price. In all of these cases, however, a value investor first and foremost must decide, with rigorous analysis and thorough examination, what they believe the fair value of an investment to be, and what degree of future potential it has.
Only from there do they then examine what value the market has assigned the investment, in order to ascertain whether or not the investment is a wise one likely to yield good returns. Under no circumstances should one ever buy into a stock without knowing much, or anything at all about the stock, save for the general market sentiment or hype surrounding it, and its short term price movements. Buying a stock merely because it has seen great gains in the past, without any understanding of why it saw those gains and what gains it might expect to see in the future based on fundamental analysis of the stock, is an inordinately risky and foundationally bereft strategy.
He pioneered a lot of the foundational concepts around value investing, and can give you much better and more nuanced advice than I ever could.
All of this said, while these principles can and should be kept in mind at large for just about any investment, cryptocurrencies are dramatically different from stocks, bonds, or any other sort of traditional investment vehicle. Investments, under this distinction, would be clarified as things that could generally be safely assured not to suffer from dramatic, catastrophic losses in the absence of dramatic, catastrophic situations. Coca-Cola and Walmart might be considered investments.
Speculations, on the other hand, are like the Wild West of opportunities. In the vast majority of cases, such an investment is likely to fail outright and lose all of the money invested. In a few instances, however, that investment just might succeed, and return tens, hundreds, or even thousands of times the principal invested. Poker might be a suitable analogy. The goal, simply, is to win more than you lose, and with the right amount of skill, knowledge, and preparation, this is a possible feat in poker.
The same might be said of speculative investments such as those in cryptocurrency. You can and absolutely should do your part to learn as much as possible about this field, and come to your own personal conclusions on its current and future potential value.
However, no matter how much research you do and how many calculations you make, there will always be a fundamental and inextricable degree of pure luck involved in determining the ultimate outcome of your speculation. At the same time, I also see a million and one ways where bitcoin fails to reach the promised land. This forces those who want to have their transactions go through to pay inordinately high transaction fees in order to prioritize their transaction over other transactions.
The implementation of the Lightning Network and other solutions threatens to take away this extra revenue stream. Hence, users of bitcoin and miners of bitcoin find themselves at odds with a very understandable conflict of interest.
If exchanges were banned from operating, for instance, it could very well make it very difficult for most people to transact between fiat currencies and bitcoin, and render the latter far less useful than it otherwise might be. On the flip side, if the world suffers a global financial meltdown on the scale of the Great Depression or something similar again, and fiat currencies start to crater, it very well may be such that governments are forced to resort to accepting bitcoin and other cryptocurrencies, if enough people simply flat out refuse to put their stock in fiat.
This was exactly what the US government was forced to do just 13 years into their original experiment with Continental currency, when they agreed to promise to back all the currency they issued with hard gold and silver.
These are just a few of countless twists and turns and vicissitudes our much vaunted and much derided bitcoin will have to endure before its long journey comes to an end, either six feet under or as an indelible fixture in our global economy.
With most altcoins, their value over bitcoin or ethereum is far from clear, and generally superficial or minor at best. Dogecoin offers just about no fundamental innovations over bitcoin, and is in fact a self-deprecating cryptocurrency premised initially, at least entirely on poking fun at itself. The name itself is a reference to the doge meme, and offers little to no further justification for its existence. Come to your own conclusions here. In a case like that, the notion is that litecoin would be able to quickly take over the ground lost by bitcoin, and become the dominant cryptocurrency.
The true feat here will be discerning those few new technologies with true fundamental potential and innovative advantage and an incredible execution strategy behind them, from the vast swaths of similar looking yet ultimately worthless contenders almost certainly doomed to eventual failure.
In short, expected value is a way to decide when an outcome is not certain, but a set of outcomes are probabilistically determinable, if a given action is going to be net positive or net negative, and to what degree. The simplest example is flipping a coin. Expected value of betting on the coin yielding heads, hence, is 0.
Hence, if you repeated this bet an infinite number of times, you would be guaranteed to be earning more money than you lost. Similarly, if you were able to bet at 1: Hence, repeating this bet an infinite number of times would allow you to dramatically earn more money than you lost yet again. This means that if I truly believe this is a possible outcome for bitcoin, then as long as I believe this outcome has more than a 0.
There is only one bitcoin in the world, and we only have one opportunity to play out this exact bet. But - each time NiceHash changed to mining a new algo - boom. Deleted again by the antivirus. Now it is 9am, all the kids are online and the town bandwidth is back to I'll have to try again I tried adding an exception for the nicehash folder, then subfolders, then subfolders in the subfolders - and now I am adding exceptions for individual files.
BUT - it is the first step toward gearing up with more mining machines. I was able to find a way to make the antivirus ask for an exception - rather than deleting the 'threat' automatically Soon after I was mining with NiceHash, I started thinking Because I'm mining with the same computer I'm working on - I can notice difference in performance when the Nicehash Miner changes mining algos When mining DaggerHashimoto, I can hardly type or scroll the page - the video card is completely occupied with mining.
But when it is mining the Equihash algo - the screen on the computer works like normal. Interesting to learn more about how each mining algo works the card - compared to how much you can make mining each.
Mine Many, Get Paid in Bitcoin The NiceHash miner takes care of changing to 'the most profitable' algo, then it converts that currency to bitcoin for the payouts. Soon I'll be joining mining pools and focusing on earning and collecting many different currencies that I think are worth investing in long term. Mine-and-hold strategy for those new currencies that may have potential to rise 10x in value over the next couple years.
Hi Doug good to see your mining away, maybe just dedicate your gpu to a particular coin that you want to hold long term. I'm not at that stage yet, getting close though, I just recently got an old desktop back from a relative after 7 years maybe lol. Old vista 32 bit so going to upgrade to win 7.
Very good question. Today I created a page at my pool for this purpose: http:// wearebeachhouse.com You don't get paid without registering and entering a name and password. But it is useful for the purposes you stated in the question. Just click the "test start" button. You need Java installed, and of course GPU. 31 Dec How does my computer compare to average hash rates? Now you can analyze the potential mining power of your computer within 1 min. Profitability is constantly changing depending on the average hash rate of the network. The easiest GPU/CPU Bitcoin miner for Windows - Minergate. Quick Test Of CPU. I was wondering if there was a formula, or if a formula could be designed, for calculating the hash rate of a GPU without experimenting with the.