Poor genetics and savage beatings from my father have left me with a brain that only functions at 20% of the level that most people operate with. With that in mind, please use small words to explain to me the consequences that this whole ASIC thing will have on Bitcoin. Also, how many Butterfly Labs 15,000Mh/s thingies have you preordered?
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Anonymous2013-03-15 22:35
BAD SIN SIN SATAN NO, Small enough, you un-intellectual anthropodic pleeb?
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Anonymous2013-03-15 22:39
The Jews will use specially made chips that waste electricity for the sole purpose of devaluing bitcoin in order to rob Bitcoin from the Goyim as they did with gold and fiat currencies throughout the ages.
None, i'm poor..
Well, bitcoin has a built-in deflation mechanism, (difficulty ramps up over time / making them harder to find -> more valuable).. the butterfly labs thing will probably work against this a little (for a chunk of money they get easier to find / small(-ish?) bitcoin surplus? -> small(? / probably temporary) drop in prices..? // bucking the trend...?!)
You mine for, well, hash function outputs with certain properties, namely a run of zeroes.. then when you find a valid one, it gets publicly announced (verified as yours) and put in your e-wallet..
Yes, just like the normal banking system can. But a bitcoin costs energy to generate. That's unlike the banking system. So at a certain moment, the cost of generating will be more than the value of the generated. Then no new bitcoins come into the economy.
This will ramp up the value of a bitcoin. That's called deflation. The early adaptors will cash their bitcoins and then to whole bitcoin economy will crash. Render them worthless.
It's like a ponzi scheme. Only really, really advanced.
the v0.7/0.8 transaction fork kind of caused one.. but it bounced back up pretty quickly..
Botnet mining
In June 2011, Symantec warned about the possibility of botnets engaging in covert "mining" of bitcoins,[61][62] consuming computing cycles, using extra electricity and possibly increasing the temperature of the computer. Later that month, the Australian Broadcasting Corporation caught an employee using the company's servers to generate Bitcoins without permission.[63] Some malware also uses the parallel processing capabilities of the GPUs built into many modern-day video cards.[64] In mid August 2011, Bitcoin miner botnets were found;[65] less than three months later bitcoin-mining trojans infecting Mac OS X were discovered.[66]
bakas, bitcoin generation costs time, energy cost is very small. also issueing real money cost the worth of paper, metal, labor of minters and the price of the factory whose only purpose (unlike your pc) is to mint
>>15
My PC actually runs Linux Mint because I am a big fat nerd. >>13 consuming computing cycles, using extra electricity and possibly increasing the temperature of the computer
Oh dear God!
Currently, 25 bitcoins are generated with every 10-minute block. This will be halved to 12.5 BTC during the year 2017 and halved continuously every 4 years after until a hard limit of 21 million bitcoins is reached during the year 2140.[1][10]
....and to the real question, can you turn an asic into a graphics card ?! ;D
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Anonymous2013-03-16 8:40
i just checked that butterfly lab site... omg, 30000$ for a miner. in how many years will it pay itself >>19 aww, i didnt want to offend you. i hope you actually werent sincere. im just mad at mate desktop for getting rid of nyan cat
>>24
No, it's too specialized. But you can turn it into a space heater.
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Anonymous2013-03-16 15:02
>>6
They are being DDoS-ed. Someone got that butthurted.
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Anonymous2013-03-16 15:48
>>25
~700 BTC to buy that rig, which would earn ~80 BTC per week if the hashrate went up by 10x.
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Anonymous2013-03-16 18:31
>>1 Poor genetics and savage beatings from my father have left me with a brain that only functions at 20% of the level that most people operate with.
that's okay, Nikita seems to manage just fine with 5%
>>10
Unlike a ponzi scheme though, after the early adopters cash out, the system will still be there.
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Anonymous2013-03-16 23:56
>>36
The value will be destroyed if the hash algorithm is broken by advances in hardware. A quantum computer or a supercomputer cluster with millions of these ASICs might be able to overpower the rest of the Bitcoin community. Aluminum used to be more valuable than gold, but then a cheap process was discovered and its value collapsed.
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Anonymous2013-03-17 0:02
What the fuck does mining difficulty have to with anything?
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Anonymous2013-03-17 0:08
>>38
What good would cornering the market and destroying the value do if the money is then worthless? Interesting, if it would take only 1000 of those fastest ones to out-hash the rate of the network before it wrecks everything and people stop buying, they still stand to sell $30M dollars of them.
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Anonymous2013-03-17 1:26
>>37 The value will be destroyed if the hash algorithm is broken by advances in hardware.
The information security will also be destroyed in this same event.
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Anonymous2013-03-17 10:06
this black dude I know bought some new shoes called ASICs and they is tight.