Anyone Invested yet? cryptocurrency

29 posts in this topic

Was looking at buying like £100 on Sunday into litecoin but didn't. If I had I'd be up £200 now!!! 

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9 hours ago, Calum122 said:

I'll invest in it when someone can actually explain to me, why the bitcoin (or the like) has any value.

Why had the sterling got value? 

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Boat has sailed a long time ago for mining bitcoin i reckon, at current difficulty it takes 70'000 weeks to mine 1 coin.

Other cryptos could be a different story.

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I got in on litecoin a few weeks ago. I only have a few coins but still made a nice wee bit.

If anyone is looking to buy sign up to coinbase using the link below and we will both get some bitcoin in return. Coinbase probably has some of the highest fee's out of the lot but its probably your safest option too.

https://www.coinbase.com/join/59a907407c7beb0247c9c758

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3 hours ago, maddox710 said:

Why had the sterling got value? 

Sterling value was backed by gold reserves nothing like bitcoin.

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13 hours ago, Calum122 said:

I'll invest in it when someone can actually explain to me, why the bitcoin (or the like) has any value.

This is my problem. How has something that doesnt really exist got monetary value?

 It costs some processing power and that rewards you with a bitcoin. But why has it got a value...

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1 hour ago, Ollieh17 said:

Sterling value was backed by gold reserves nothing like bitcoin.

This, okay it's not now, but it's back by a full government/country and the like.

Bit coin could be considered a rogue currency, who is directly held responsible for its collapse. The Stamp on the Sterlin notes say "I Promise To Pay The Bearer...." 

 

Therefore, someone is held directly responsible for that.

 

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23 hours ago, TrisK said:

Ethereum and Ripple are the places to be right now

yup and Monero. I'm going to be mining Ethereum shortly (maybe today). It's a ball ache downloading all block chains and setting up unless you have a good SSD drive. For those who don't know, Monero will be a fully encrypted currency and Ethereum will be for smart contracts. It's not worth mining unless you have a pretty good GPU and SSD drive.

22 hours ago, Calum122 said:

This, okay it's not now, but it's back by a full government/country and the like.

Bit coin could be considered a rogue currency, who is directly held responsible for its collapse. The Stamp on the Sterlin notes say "I Promise To Pay The Bearer...." 

 

Therefore, someone is held directly responsible for that.

 

It's a decentralized currency. The transactions are verified by network nodes and recorded by an immutable public distributed ledger. This is called a Blockchain. There is a set fixed amount released into the public domain which can be divided pretty much indefinitely. The federal governments can't fuck it up because they aren't able to switch on printers and print out more fake plastic money. Hence the prices going up on these is somewhat a reflection of how fake the actual monetary system is becoming. New World Order anyone?

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Just now, Shyam said:

yup and Monero. I'm going to be mining Ethereum shortly (maybe today). It's a ball ache downloading all block chains and setting up unless you have a good SSD drive. For those who don't know, Monero will be a fully encrypted currency and Ethereum will be for smart contracts. It's not worth mining unless you have a pretty good GPU and SSD drive.

It's a decentralized currency. The transactions are verified by network nodes and recorded by an immutable public distributed ledger. This is called a Blockchain. There is a set fixed amount released into the public domain which can be divided pretty much indefinitely. The federal governments can't fuck it up because they aren't able to switch on printers and print out more fake plastic money. Hence the prices going up on these is somewhat a reflection of how fake the actual monetary system is becoming. New World Order anyone?

But how do you earn said Money.

 

Oh by performing crytographic calculations, which all seems shady to me.

 

How does this cryptographic calculation have any sense on monetary.

 

Money is used for the exchange of goods and services, you earn said money by performing the sale of such good or service.

 

I'm not disputing cryptocurrencies' exist, I'm disputing the legitimacy of how it's all worked out.

 

You set your computer to mine some coin, and come back later to be X amount of pounds richer. Do you even know what it is you're mining. For all you know it could be for some completely illegal nature, for use against some completely illegal nature. There must be some value in what you're doing, otherwise why would it have any value.

 

Is it mining crypto to cure world hunger, probably not, it's probably doing so it can break encryption algorithms. Why would anyone want to a quick way to work that out I wonder....(that's sarcasm)

 

I hope (suspect) I'm wrong. It's either too complicated or I am simply not interested. But the whole deal seems incredibly shady to me.

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18 minutes ago, Calum122 said:

But how do you earn said Money.

 

Oh by performing crytographic calculations, which all seems shady to me.

 

How does this cryptographic calculation have any sense on monetary.

 

Money is used for the exchange of goods and services, you earn said money by performing the sale of such good or service.

 

I'm not disputing cryptocurrencies' exist, I'm disputing the legitimacy of how it's all worked out.

 

You set your computer to mine some coin, and come back later to be X amount of pounds richer. Do you even know what it is you're mining. For all you know it could be for some completely illegal nature, for use against some completely illegal nature. There must be some value in what you're doing, otherwise why would it have any value.

 

Is it mining crypto to cure world hunger, probably not, it's probably doing so it can break encryption algorithms. Why would anyone want to a quick way to work that out I wonder....(that's sarcasm)

 

I hope (suspect) I'm wrong. It's either too complicated or I am simply not interested. But the whole deal seems incredibly shady to me.

I get your point but the actual calculations are not shady or fake. They're legitimate calculations that continue the blockchain and when your graphics card solves the problem, the next block is created and you earn a little bit more cryptocurrency. This is called hash rate. All graphics cards have a certain benchmark hash rate and this determines how well your PC will be able to mine.

 

So generally speaking, I understand why you'd think ''well how is it legitimate when it's just solving a problem to a formula ect''... In actual fact, when a problem is solved, not only is a new block created but all previous transactions are also verified within its chain.

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Basically to make it worth your time need a computer with a graphics card equivalent to a nvidia gtx 1070ti(£360+) or above with a efficient power supply. Obviously a big powerful gpu consumes alot of power so you need to Make sure your not paying out more in your electricity bill than your actually making in crypto currency 

 

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19 minutes ago, maddox710 said:

Basically to make it worth your time need a computer with a graphics card equivalent to a nvidia gtx 1070ti(£360+) or above with a efficient power supply. Obviously a big powerful gpu consumes alot of power so you need to Make sure your not paying out more in your electricity bill than your actually making in crypto currency 

 

The days of farming on a measly 1070 are well gone now.

 

They sell dedicated cards for crypto mining, but the real way to do it nowadays is to invest in a server farm.

 

@Shyam Block Chain? What does that even mean. Is my point. They are telling you yes. you earn money from solving a block chain. Blah Blah Blah.

 

But what value is solving a block chain, someone somewhere sees value in a block chain. What are they trying to solve that makes solving part of a block chain have any monetary value. Is my point. You can talk jargon all you like and people will accept that. I'm just confused as to what maths stuff they are trying to solve that would give it a monetary value.

 

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1 hour ago, maddox710 said:

Basically to make it worth your time need a computer with a graphics card equivalent to a nvidia gtx 1070ti(£360+) or above with a efficient power supply. Obviously a big powerful gpu consumes alot of power so you need to Make sure your not paying out more in your electricity bill than your actually making in crypto currency 

 

I'm only using a GTX1060 6GB card and that gives me a hash rate of 20. Doing a little guinea pig experiment before invest in bigger build. The readon graphics cards are better value for hash rate and you can install multiple cards onto many motherboards to increase that. Yes exactly William mate, you need to calculate the power consumption as it's consumes a lot of electricity and basically subtract this from your mining profits. 

36 minutes ago, Calum122 said:

The days of farming on a measly 1070 are well gone now.

 

They sell dedicated cards for crypto mining, but the real way to do it nowadays is to invest in a server farm.

 

@Shyam Block Chain? What does that even mean. Is my point. They are telling you yes. you earn money from solving a block chain. Blah Blah Blah.

 

But what value is solving a block chain, someone somewhere sees value in a block chain. What are they trying to solve that makes solving part of a block chain have any monetary value. Is my point. You can talk jargon all you like and people will accept that. I'm just confused as to what maths stuff they are trying to solve that would give it a monetary value.

 

Okay well to answer your question; A Blockchain is a FULL PUBLIC RECORD of ALL TRANSACTIONS for that particular cryptocurrency. The Blockchain can be viewed by anybody and can be used to determine how many 'X' cryptcurrency amount were attached to any one address at a given time. So yeah, you can literally see every transaction in public doman; go to https://blockchain.info/

Your right in questioning 'how does it have any value. The fact is, it does NOT have any 'intrinsic value'. However, you can see for yourself that it has significant 'monetary value'.

A block is a measure of code that's composes the blockchain. It's basically the record of transactions that have occurred since the last block was created and confirmed to its previous transactions. Each block links to the block before it, therefore creating a full chain back to the original genesis block. The reason why it's now worth so much money and why it works legitimately is because the whole system agrees and works with itself. Therefore when you create a new block, your dividing the total amount in the public domain of transactions and then adding that back what you've mined in a agreed system. Basically, your using GPU power for 24/7 accounting of the blockchain and getting paid a little tiny bit each time for your services.

I'm still a beginner and learning about it myself, but  this is what I understand of it. If anyone thinks I'm wrong, please correct me. Thanks

Edited by Shyam

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It doesnt really have any value. The value has come about by demand. Think of it like a shitty pointless jdm optional extra,deep down its worth bugger all but the demand is there to put the value up.Far more likely to come crashing down than the pound etc

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27 minutes ago, Ollieh17 said:

It doesnt really have any value. The value has come about by demand. Think of it like a shitty pointless jdm optional extra,deep down its worth bugger all but the demand is there to put the value up.Far more likely to come crashing down than the pound etc

lool funny comparison still.

9 minutes ago, Calum122 said:

@Shyam Cool. I appreciate you writing that, but that doesn't tell me what it is you are actually calculating. That's the thing that has value to someone. 

 

1 hour ago, Shyam said:

Basically, your using GPU power for 24/7 accounting of the blockchain and getting paid a little tiny bit each time for your services.

I'm sorry dude, I don't know how else to explain it. Hope it makes slightly more sense then before anyway.

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On 12/13/2017, 9:36:56, Ollieh17 said:

Sterling value was backed by gold reserves nothing like bitcoin.

Unfortunately it's no longer backed by Gold. We are now living in a time where our money is backed by petroleum.

In 1933, President Richard Nixon announces that US will no longer convert dollars to gold at a fixed value. Therefore abandoning the gold standard.

During The Great Depression (1929-1939), most countries were forced to remove the gold standard from their currencies; including UK, in 1931.

You'd think this would be common knowledge but it's one of those things they want to erase from history...

Edited by Shyam

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@Shyam Yes I understand all the Jargon words. But the bit no one seems to be able to explain, is what is the Block chain calculating. That's the bit shrouded in mystery. It has to be calculating something worth while, otherwise what would be the point.

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Just now, Calum122 said:

@Shyam Yes I understand all the Jargon words. But the bit no one seems to be able to explain, is what is the Block chain calculating. That's the bit shrouded in mystery. It has to be calculating something worth while, otherwise what would be the point.

The Blockchain itself doesn't calculate anything. The Blockchain is the data of all previous transactions. i.e for Ethereum, all the blockchain data you will download will be for smart contracts.

It's your GPU that does the calculating. The GPU accounts for and verifies all the previous transactions/data in the 'blockchain'.

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33 minutes ago, Shyam said:

Unfortunately it's no longer backed by Gold. We are now living in a time where our money is backed by petroleum.

In 1933, President Richard Nixon announces that US will no longer convert dollars to gold at a fixed value. Therefore abandoning the gold standard.

During The Great Depression (1929-1939), most countries were forced to remove the gold standard from their currencies; including UK, in 1931.

You'd think this would be common knowledge but it's one of those things they want to erase from history...

I did put 'was'. Still against the point, sterling was developed against something of value. It's built up that strength and now has no real risk of every dropping off face of the earth (within a reasonable time). It's not like you can go into a shop and they refuse to take sterling...most places even take sterling abroad!!

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6 minutes ago, Shyam said:

The Blockchain itself doesn't calculate anything. The Blockchain is the data of all previous transactions. i.e for Ethereum, all the blockchain data you will download will be for smart contracts.

It's your GPU that does the calculating. The GPU accounts for and verifies all the previous transactions/data in the 'blockchain'.

Right, again to make my point WHAT are you allowing your computer to calculate. WHAT is the maths your computer is performing. Forget about transactions, block chains, public records and coins for the moment.

 

Someone is using your computer to calculate some mathematical equation, which is never really explained. Effectively the bit coin mining community is just one massively distributed bot net, of which people gladly accept. Who actually understands what calculations your computer is performing. That is the point I am trying to raise, and the point I find incredibly shady.

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40 minutes ago, Ollieh17 said:

I did put 'was'. Still against the point, sterling was developed against something of value. It's built up that strength and now has no real risk of every dropping off face of the earth (within a reasonable time). It's not like you can go into a shop and they refuse to take sterling...most places even take sterling abroad!!

You'd be surprised mate. You can't cause inflation with decentralized currencies. You can't create debt out of thin air (interest) with decentralized money. You can't print more of the stuff when it runs out. In-fact, I reckon centralized currency will fall much sooner than decentralized currency. Look at how much the bitcoin has accelerated in value compared to pound sterling? is it because the value of bitcoin has gone up or because the value of centralized currencies have gone down? The more money your country prints, the less valuable and stable your money becomes. With cryptocurrencies (well Bitcoin atleast) the amount released into the public domain is a fixed number. (just like theres a fixed amount of Gold in the world). I think there's a total of around 20 million Bitcoins out there. The key is that it can be divided indefinitely so that it remains stable and grows.

32 minutes ago, Calum122 said:

Right, again to make my point WHAT are you allowing your computer to calculate. WHAT is the maths your computer is performing. Forget about transactions, block chains, public records and coins for the moment.

 

Someone is using your computer to calculate some mathematical equation, which is never really explained. Effectively the bit coin mining community is just one massively distributed bot net, of which people gladly accept. Who actually understands what calculations your computer is performing. That is the point I am trying to raise, and the point I find incredibly shady.

I don't know what mystery mathematical formula your speaking about. It can't be a random formula which supposedly makes you money out of thin air. It has to be related to the model for it to work. It basically follows where the money went through the internet (lots of different scripts/codes that the GPU processes etc) and verifying the transactions.The maths is in how your GPU processes that information and verifies transactions. Every crypto transaction requires a fee to be paid. The higher the fee, the quicker the money moves. Your GPU the verify this transaction and make a small percentage of the fee.

Edited by Shyam

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@Shyam I don't think that's it, that's far too simple. If it was simply an authentication mechanism, why is it valuable. Also, why is it getting harder to "Mine". We are told there are only a finite number mathematical equations that can be solved. But what you're saying is you're using a CPU to verify transactions. Which makes no sense since why would verifying a transaction become harder to verify the more you do it.


No, more likely they are trying to solve some sort of hard to break mathematical equation, wouldn't surprise me since if you could do that, people would pay a lot of money for it. And boom, that would be why Bit Coin would have value. But I literally have no idea :/ Wish someone could explain it to me haha.

 

I get what you're saying though bud.

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