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Posted on 12/29/2013 6:13:10 AM PST by Errant
Bitcoin miners who mine “for themselves” do not have to register as Money Services Businesses (MSBs) with the US Financial Crimes Enforcement Network (FinCEN), according to an official letter from the agency this week.
FinCEN was replying to a request for clarification by Atlantic City Bitcoin (AC Bitcoin), aka advocate Milly Bitcoin, who maintains an array of ASIC miners in New Jersey. According to the letter, miners are still free to purchase goods or trade with exchanges with the bitcoins they produce whether operating as individuals or businesses.
(Excerpt) Read more at coindesk.com ...
Please add me to your BC list. Thanks!
Please add me too. Thanks!
Done!
Just wondering, are sales taxes collected on transactions with bitcoins?
Interesting reading. I wonder how miners get better at finding the nonce. It’s like reading about DNA (the blocks) RNA (the hashes), proofs, nonces.. I must be going batty.. or it’s my training.
So only those good at math can become bitcoin rich?
How do those of us number challenged obtain them? What REALLY prevents creation of any bitcoin by anyone? How do I take payment in bitcoin then pay my bank loan with them?
I am confused...so many say how its a new not quite currency but I do not understand how it has any value.
Here’s a good read. http://www.coindesk.com/information/what-is-bitcoin/
You have to know your state's law. Also, some states do not tax investments, are those over over a certain dollar amount, as it then becomes subject to capital gains tax (both state and federal). I'm no expert, so you have to research this for yourself or let your tax preparer know.
Thanks...will study.
http://www.coindesk.com/information/
You don't have to be a math whiz. You can of course buy them, hoping they go up in price, "mine" them, or trade the price swings at online trading markets just like you would stocks or commodities.
They don't, it is pure brute force. Every "miner" competes for a limited number of "bitcoins" allowed to be released over a given time. That release is controlled by a adjustable mining difficulty level.
Right, I’m getting it. 21 million bitcoins, ASIC Bitcoin Miners, 2 Terahashes/sec range.
Interesting
Very! Who knows where this is all headed.
A link to current mining difficulty levels: http://allchains.info/
One of the better descriptions of the concept that I found under one of the article’s comments section:
Here’s how I usually explain Bitcoin to skeptics:
The reason it’s so hard for most people to understand Bitcoin is that most people don’t really understand money. Money isn’t wealth. It’s an accounting system used to facilitate the exchange of wealth. (The paradox of money is that while everyone wants it, no one actually wants it - they want the stuff they can buy with it!) Many people are put off by the fact that bitcoins are “just data.” But that’s what ALL money is, information! More precisely, money is a means for credibly conveying information about value given but not yet received (or at least not yet received in a form in which it can directly satisfy a person’s wants or needs).
To put it yet another way, money is a ledger. With fiat currencies like the dollar, that ledger is centralized. And that gives the central authority responsible for maintaining that ledger tremendous power, power that history has proven will inevitably be abused. With Bitcoin, the ledger is decentralized. And that means that no one individual or entity has the power to arbitrarily create new units (thereby causing inflation), freeze (or seize) your account, or block a particular payment from being processed. We’ve had decentralized money before. After all, no one can simply print new gold into existence. And the “ledger” of gold is distributed because the physical gold itself (the “accounting entries” in the metaphor) is distributed. But with gold, that decentralization comes at a heavy price (literally). The physical nature of gold makes it hugely inefficient from a transactional perspective.
Enter Bitcoin.
It is the first currency in the world that is both decentralized AND digital. It is more reliably scarce than gold, more transactionally efficient than “modern” digital banking, and enables greater financial privacy than cash. It could certainly still fail for one reason or another, but if it doesn’t, it has the potential to be very, VERY disruptive.
I really like the CGMiner app for use with GPUs. It has a lot going for it in the way it can be tweaked and automatically control the fan and cycles to keep those expensive GPUs from burning up. What are they btw? Nice 1500W PSU too.
Check out "WeMineLtc.com" for a pool to use.
Thanks for sharing, my hats' off to you!
Feel free to PM me anytime.
7970s have twice the hashing capabilities of 7950s.
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