Update on my Mining Rig

I’m dabbling in all things bitcoin these days. Investing, exchanging, technology, and mining… To name a few. It’s an incredible time to be alive and paying attention; and not just because the price of a bitcoin went over $260 recently. There is a whole world to bitcoin with tens of thousands of people interacting; & mostly all of us are working towards making bitcoin take off and become the next major world currency.

So two weeks after building my first dedicated mining rig, I’m ready to spill some details & pictures. First of all, here is the output, from the windows-based Bitminter client:

My mining Rig's hash rate through Bitminter

My mining Rig’s hash rate through Bitminter

What you’re looking at on the dial there is the total hashing rate (in Mega-hashes per second) that my rig is adding to the Bitminter mining pool. I do not use the CPU on this machine, only the 3 Graphical Processors. (GPUs) Continue reading

First bitcoin ATM to be installed in Cyprus

A fake but pretty design for the upcoming Bitcoin ATMs.

A fake but likey design for the upcoming Bitcoin ATMs.

Jeff Berwick, a well known Anarcho-Capitalist who’s blog I often read, has announced today that he’ll be opening the first public ATM in Cyprus soon.

Even better, he has started offering these ATM’s as a franchise called BitcoinATM!

These ATMs will allow 2-way transactions; you can send cash money up to your wallet at one, or you can change bitcoins down into the local currency too! If you’re reading this blog, I’m sure I don’t have to tell you what these things getting out in the wild would do for bitcoin… It would make bitcoin nothing short of truly USABLE.

FreeStaters (of the New Hampshire variety) were actually the first to create a working bitcoin ATM which simply took USD and sent bitcoin to an address in return; but they don’t seem to have gotten any further along with the project that the proof-of-concept model. Jeff’s ATM, which admittedly we see no evidence of it getting even that far yet, has great backing and lots of money behind it. Jeff is well known for his libertarian-slanted investment success. Continue reading

Avalon Batch 3 News

Avalon ASIC Chips - News about Batch #3

Avalon ASIC Chips – News about Batch #3

Breaking News on Avalon ASICs: Batch three may or may not get sold, but will officially cost 75 Bitcoins if it does, and start shipping at the end of April.

75 bitcoins is currently = $5,415 USD on MtGox. Ouch! (They sold the last batch for $1,299 USD.)

They said all of this tonight in a newsletter update and  that they determined this price by taking “the current mining difficulty which at the time of writing, just got readjusted to about 6,695,826. We take that number and multiply it by two ( predicting the network speed will double. ) and calculate the return in a thirty day window, which is about 75 bitcoins.”

The tricky part, however, is that they have said that “it is up to the community” if they are going to sell batch three or use them to farm with themselves! They do not give a date precisely, but at the bottom of the newsletter they said in large letters: “Decide on 8:30AM EST, 3/25/2013.” (Tomorrow.) -So there will be talks all night overnight on their FAQs page that decide the fate of this last shipment. Continue reading

Constant drivers for Bitcoin usage

What are the primary drivers of Bitcoin's epic growth?

The primary drivers of Bitcoin’s epic growth are:

W00t! Bitcoin broke through $50 tonight for the first time. Bitcoin’s adoption worldwide, too, is up. WAY up.

But still there are doubters that bitcoin can become truly relevant. Most opinions online assume that any bitcoin’s success is strictly due to the black market, and a few tech-loving geeks, A few others will admit that there is some actual market speculation going on too by random investors.

Thankfully, this isn’t even close to a realistic sampling of the bitcoin community. In fact it is laughably off track.

There are a few polls online, some informal, and a few much more formal like this one taken mostly from users of the BitcoinTalk forum. Taken together, these polls paint a pretty clear picture of who is actually buying bitcoin, and there appear to be 7 distinct groups that my untrained eyes can spot.

In order from most popular to least, the 7 groupings of bitcoiners are: Continue reading

Bitcoin will be central to the DEFCAD revolution

Dear friends, I just saw the future, and it is completely distributed.

Earlier today, Cody Wilson of Defense Distributed (where you can download printable gun parts) released a video that gave me as much hope as bitcoin does, if not more, for reshaping this planet into something desirable.

Without further ado, here’s the video: (We’re very likely going to be discussing it many times in the future, so you might want to take notes!)

DEFCAD is going to be a Bittorrent-like program, totally peer-to-peer, that has its’ own search for any and all 3D files online, especially the illegal ones. (Right now it’s just a website listing printable gun parts. Later it will be be a full peer-to-peer protocol listing all kinds of products, including those that unfairly cost too much, such as a prosthetic limb.)

Continue reading

Why Austrians are Wrong about Bitcoin

Austrian Economists unjust attack on Bitcoin.

Austrian Economists unjust attack on Bitcoin.

I have learned a lot from the Mises academy and Austrian Economics in general. There is in fact very little I’d disagree with that I’ve read from these sources, and I believe everything that came directly from Mises or Hayek themselves is the final word in economics. These great thinkers are rare gifts to humanity, and it’s a bitter injustice that ‘mainstream’ economists ignore them so often.

Sadly, the common opinion of Bitcoin expressed from the Mises Academy’s leaders today is a true exception to this otherwise pure fountain of wisdom. They have stated that Bitcoin can never be a commodity (since it isn’t useful for anything else) and therefore can never be actual money. Then some of them continue on to say that because it can’t actually be money, one should never invest in it, because they are sure the market won’t accept it. (My paraphrasing, but accurate sentiment.)

In short, the hardcore Austrians continue to say that the market won’t accept it, yet the market is valuing each bitcoin today at almost $50 USD, and growing.

Luckily, some others in the Mises crowd don’t go so far as saying that it cannot catch on; but still they don’t spend any time promoting it nor I’d imagine investing in Bitcoin. Here is the common response that most Austrians will point to on Youtube, and I believe it is the one such statement from Mises with the most reviews: Continue reading

KimDotCom Wants to Start His Own Bitcoin Credit Card

Mega Credit Card? Who needs it?

Mega Credit Card? Who needs it?

Mega’s KimDotCom recently tweeted:

#Megacard: I would love to create a #Bitcoin credit card! Who can help us make it happen? Email: twitter@kim.com

I think Kim’s proven himself a real action taker; he’s going to attempt to make this happen… The question then becomes; Will it be useful?

Considering the fact that mega.com didn’t go back up (yet) to the level of traffic that megaupload did, (meaning that the market is a bit shy or scared) I’m a little bearish on this card… Especially because it’s a CREDIT card, as he asked for in his tweet.

If it were a debit card, meaning that bitcoins back a local-currency denomination and any monies you take out of it get funded by your BTC balance, then I’d say he’d have a winner… If he can pull it off.

But as a credit card, I don’t know what to think. You make minimum monthly payments in BTC and it can pay BTC to vendors who take it? Seems like that’d be easy enough to do, but it wouldn’t overcome the limitations that BTC already has… Namely that few merchants accept BTC.

Perhaps he means that you make minimum monthly payments in BTC and it can pay Local currency at floating conversion rate to anyone at all… Which would be one helluva trick.

Continue reading