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What are you waiting for?
Until recently, every currency on earth was either based of a precious metal or a group of mental patients (our government)...Enter the bitcoin. A decentralized currency based of a limited number of bitcoins(21 million to start) and a logical algorithm that encrypts all monetary transactions of the bitcoin market. No printing of money, no bad decisions...only logical.
Since the bitcoin is decentralized...if you feel like breaking the law...this is your place. Not why I'm in the market, but can already see a virtual black market emerging with untraceable transaction...payable in any currency currently traded. The value is based on the number of transactions globally. The Bitcoin started in 2009 and once started, from what I've read, can not be stopped. As long as the internet is still going the Bitcoin will only get stronger, and as of now 2140 is when the last bitcoin will be harvested.
What or who is behind the bitcoin?
This was my first hurdle...and it's a tall one. Not backed in gold or by any country you might ask does a virtual currency have monetary value? The answer is simply, more than anyone ever thought. The bitcoin traded for around $15 in January and is now a cool 143.50 in US dollars. Crypto-currency is designed to be a secure way to deal in dollars on one end and Rubles or Euro's even Peso's. Since encrypting every transaction at multiple stages...it's easy to cash out into a virtual wallet as ofter as you want only charged a minute trans fee...even a huge trade results in a couple penny transaction...never approaching the overhead of the stock market or even the forex exchange.
How are bitcoins created?
In order to encrypt every transaction every made they need a super computer on steriods...bigger than anything that exists today. Enter bit torrents and your (yes your) graphics card. If everyone with a torrent client like 50miner (the one I am using) is on the net...you have millions maybe more graphics cards doing encryption on both sides of the financial transaction...buying and selling. Here is where it gets interesting...you'll be renting out your video card...or two or four, every one you have if possible.
With two 5850 video cards and bitcoins trading at 144...you will be mining at 1.2 g/hash per second..(Now I haven't been able to get this high yet but don't have 5850's, they and the 7770's are by far the best for mining), at this rate, you could easily harvest around two bitcoins a day...or 288 US dollars as of 4/6/2013.
Sound's easy and is really easy if you know any Linux, windows will work but not ideal, In the near future, dedicated mining machines are set to hit the market...first one in early may...there are machines that use graphical gpu's at a very small wattage...and specs say capable of mining at a rate of 60 g/hash for around $3000. That would be payed for in 10-20 days...no shit, and since your using encryption the more computers mining the harder the coins are to mine...but not yet.
Can anyone do this?
Yes...all u need is a decent video card or two and some limited knowlegde of torrents help. I recomment getting your pc to mine successfully before investion in a mining machine, Within a week you'll see how the system works.
Where do I start?
Search bitcoin forums and get familiar with a couple different types of software like 50miner...this includes a mining application, virtual wallet and shopping cart(even ebay is accepting bitcoins as payment). Your virtual wallet is where you dump the bitcoins after you mine them...you could cash out everyday of every month. I suggest every day or two, this is a torrent and any chance of getting hacked goes way down if bitcoin is in your virual wallet and your password is safe. Once in your wallet, you can either buy something that takes bitcoins as payment or turn it into any currency. The Aussie Dollar bieng the only currency backed in gold is the most expensive transaction fee you will run into.
Why did the Bitcoin start and grow?
in a couple words...Washington DC and every other gov't that makes stupid decisions...in other words, Every currency on earth other than a crypto-currency is subject to bad decisions made by men...or women. A few years ago a logical algorithm was written for a monetary system by a Japonese economist Satoshi...specifically designed to make only logical decisions and compete against other currency's that don't operate in the realm of common sense. Satoshi might be the most brilliant financial mind of our lifetimes and he has given us the first open source decentralized currency ever. Others like litecoin and namecoin have followed but aren't worth it yet.
How much can you make mining?
with 2-4 good video cards you're looking at 100-200 a day, and yes it will vary. Eventually as the supply of bitcoins goes down they will be harder and require more processing to mine but this also makes them hold their value against other currencies if not overtake them all together.
Investing $3000 in a mining machine is well worth it...but worth waiting until June 2013 to see the new products hit the stage. It is such a new market only Butterfly Labs has mining computers in stock and they were the only maching that was in giga/hashes. By June at least 2 other companies will start selling and most likely drop the prices a little. 60g/h/s for 3000 could potentially pay for itself within 2 weeks, just for plugging it in. After two weeks you could by another mining machine with the bitcoins you mined delivered to your door and payed with bitcoins.
Is it really this big of an opportunity?
YES...as long as you believe the computer will make better decisions than a politician or CEO of a bank. Bitcoins can't ask for a bailout or print money when times are tough, limiting the amount of currency. Don't get me wrong there is risk. The best hackers in the world are trying to hack the mining machines that we use...which is why I suggest putting the bitcoins into your virtual wallet ofter and early. Also since it's decentralized and no country or person is in control the potential is there to deciamate another weaker currency and there would be nothing the traditional money or banks could do.
I hope this help even one person...The more people in the stronger it gets and the more money there is to be made. Don't take my word for it...please research and comment on my findings. Start at mtgox, butterfly labs and download a clients software(50 miner) then play around with the bitcoin calculator to see at what rate (g/h) pays the best
