Skip to comments.For Bitcoin "Miners," Nice Work If You Can Get It
Posted on 04/18/2014 2:50:11 AM PDT by zeestephen
For Steve Vittitoe, bitcoin is a fun way to make some extra money. This unassuming 31-year-old family man, who is a computer programmer for a cybersecurity firm, runs a mini bitcoin-mining operation from the basement of his home in Valparaiso, Ind.
(Excerpt) Read more at cnbc.com ...
In depth CNBC report on mining, video + text.
The video portion is long, but quite interesting.
I thought this might interest you since you are actively mining.
I personally don’t like Bit coin because of the digital aspect. I think it would be too easy for a rogue hacker to break into your account and reduce whatever cash assets you might have to zero.
At least with paper money, if somebody wants to do that to you, they have to do it with everybody, so there’s a bit of inherent protection when dealing with cash.
Like a pyramid scheme, you had to get in early in order to make money. It’s too late now to get into bit mining and expect to make anything.
There is no “account” really...your Bitcoin is stored in a file called the “wallet” that you can encrypt and store on a flash drive if you want. Stash the flash drive somewhere & don’t tell anyone your encrypted passphrase. Here is a “high caliber” USB flash drive for it: http://www.nrastore.com/nrastore/ProductDetail.aspx?p=HO+603&ct=e
I fail to see why any legitimate business would be willing to accept the Bitcoin in exchange for goods or services.
If two or more pople accept it as a medium of exchange then it starts to hold value.
Sounds like some loser operation that is ripe for the US Government to start insinuating itself into... Take all that computing power of the NSA data collection centers and mine bit coins on an unheard of scale... in an effort to debase that currency as well.
Oh... that would go over just great at the TSA groping stations in every airport.
Bank accounts are hacked all the time.
The difference is that you are insured by the government and banks keep the hacks very quiet.
No more so than they could access your actual bank account.
Remember that digital currency is based on large prime numbers, something that even the most powerful of desktop computers could not churn out in a reasonable time. Digital currency leaves a trail if you know how to find it. Further, it cannot be counterfeited. If you can prove you owned a specific currency code, the money can be reimbursed immediately in the case of theft, but it's unlikely that theft would happen right away.
The biggest vulnerability with BitCoin is its volatility as a market currency. Anyone using it would be best served to wait to buy something when the currency is worth more and save while it's less. It's really a very real-time type of currency compared to what we consider "real money."
AFAIK, the NSA doesn't have ASICs or other hardware specialized for computing hashes.
This might be a dumb question, but I'll ask it anyway: Is there any type of exchange rate that has been established with the Bitcoin versus the Dollar, the Yen, etc.?
Not that I’m aware of. Every government-based currency exchanges at different rates for Bitcoin.
Because it is cheaper than Visa and MasterCard.
0% vs 2% or more.
On a couple hundred thousand in charges a year it can add up to real money.
Bitcoin processors will convert to fiat immediately so the valuation fluctuations are not an issue.
You can turn your bitcoin(s) into a paper format that is locked with a password, keep it hidden at home or in a safety deposit box until you need it. It remains in your possession just like a dollar bill.
No one can steal it off the internet - because it’s not on the internet.
AND, you can keep multiple copies hidden in different locations. Unlike your dollar bill, of which there is only one - of each.
But you sure better record your password somewhere because without it your BC is unuseable........
You don’t think a rogue hacker could break into your home system and steal your bank info? Happens all the time.
There are many “private” exchanges.
As far as I know, none of them are physically located in the USA, probably because that would require registration and supervision by many state and federal agencies.
The current quote for Bitcoin is: 1 Bitcoin = $481 US Dollars.
Last December, the price almost reached $1,200.
Currently, the value of a Bitcoin is so unstable, and so volatile, it is not a practical substitute for national currencies like the US Dollar.
But a lot of smart people think it has a compelling future.