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Bitcoin is the easiest to convert into real money or giftcards or whatever else. Nicehash is the laziest way to mine because it switches to the most profitable one for you automatically and they pay in bitcoins. You definitely could make more doing it all yourself manually, but that's like making 3 dollars a day rather than 2.50 for spending hours watching markets and setting up individual mining apps. You're never going to be mining the most efficiently with Nicehash but you also don't need to know anything and won't accidentally spend a day on something getting you like 50 cents because it has fallen out of favor for that day. craig588 fucked around with this message at 20:01 on Nov 20, 2017 |
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Nov 20, 2017 19:59
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craig588 posted:Bitcoin is the easiest to convert into real money or giftcards or whatever else. Nicehash is the laziest way to mine because it switches to the most profitable one for you automatically and they pay in bitcoins. You definitely could make more doing it all yourself manually, but that's like making 3 dollars a day rather than 2.50 for spending hours watching markets and setting up individual mining apps. OK so in layman's terms so I understand it: Install nicehash, it looks at your GPU/CPU and says "Hey today, you would do really great if you mined ethereum!" So I mine ethereum for nicehash and it goes "Hey great job, thanks for the ethereum I'll trade you what you mined for some bitcoin which I will put in your bitcoin wallet." Is that correct?
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Nov 20, 2017 20:39
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close enough and the end result is basically the same so its not important you understand exactly what happened.
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Nov 20, 2017 20:57
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Knifegrab posted:OK so in layman's terms so I understand it: Install nicehash, it looks at your GPU/CPU and says "Hey today, you would do really great if you mined ethereum!" So I mine ethereum for nicehash and it goes "Hey great job, thanks for the ethereum I'll trade you what you mined for some bitcoin which I will put in your bitcoin wallet." It is even stupider than that, but close enough. Burn electricity, receive bitcoins.
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Nov 20, 2017 21:00
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It's literally "I have hashing power" "Okay, we'll pay you x for using your hashing power" "thanks"
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Nov 21, 2017 00:05
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PerrineClostermann posted:It's literally "I have hashing power" "Okay, some dumb rear end will pay you x for using your hashing power" "thanks"
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Nov 21, 2017 00:07
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Yeah p much this, no idea what logic a person paying for hashing power is using. Everybody can’t make money on the deal, either the miner, NiceHash or the buyer has to lose out barring BTC continuing TO THE MOON
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Nov 21, 2017 00:37
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tehinternet posted:Yeah p much this, no idea what logic a person paying for hashing power is using. Everybody can’t make money on the deal, either the miner, NiceHash or the buyer has to lose out barring BTC continuing TO THE MOON I *think* it’s something like “I don’t want to invest in mining rigs for bitcoin, but I would still like to get into this dumb bullshit, but also I don’t want to just buy the Internet tokens, so uh maybe rent these mining things and pay for them because I’m not a sucker heh”
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Nov 21, 2017 00:48
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The way it's supposed to work is the buyer pays a 1 dollar for 105 cents of work and the miner gets paid 95 cents. In practice it seems like they're paying 1 dollar for 1 dollar so they're basically paying Nicehash for no reason. Probably some sort of criminal money laundering.
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Nov 21, 2017 00:50
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Also it uses the advantage of all the alt coins that no one gave a poo poo about 6 months ago and were 5 cents. So now bitcoin has gone up people are throwing money at it like it is the south seas company. So basically all the new people trying to get in on the craze are blustering all these things that floundered for months if not years. All of whom have less difficulty and less cost to mine than the big boys. That's the long needless explanation why people are paying for "cloud mining" to them you are the suckers. Cause when the currency reaches the magical number they made up to feel good about doing this, you will have worthless gift cards to buy real goods instead of imaginary internet money.
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Nov 21, 2017 01:00
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craig588 posted:The way it's supposed to work is the buyer pays a 1 dollar for 105 cents of work and the miner gets paid 95 cents. In practice it seems like they're paying 1 dollar for 1 dollar so they're basically paying Nicehash for no reason. Probably some sort of criminal money laundering. I always felt like it was being "abused" by some currency exchange manipulation (IRL money). It's the only way I can imagine it being worthwhile to purchase the hashing power at the rates you see them at. Money laundering kind of makes sense but I really can't imagine that propping up all the business Nicehash gets. Because for real, it is kind of strange that people are willing to pay you the same amount of money it would cost to simple buy ____coins except this way its much slower and riskier and involves at least one haircut along the way. Its been a while since I've even looked though maybe its more logical now.
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Nov 21, 2017 01:08
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Haha Oh, you were serious? Logic and bitcoin ? You weren’t serious were you
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Nov 21, 2017 01:55
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1gnoirents posted:maybe its more logical now.
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Nov 21, 2017 02:10
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craig588 posted:The way it's supposed to work is the buyer pays a 1 dollar for 105 cents of work and the miner gets paid 95 cents. In practice it seems like they're paying 1 dollar for 1 dollar so they're basically paying Nicehash for no reason. Probably some sort of criminal money laundering. You funnel illicit bitcoin with a trail into nice ash, and get a new currency and wallet trail as output.
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Nov 21, 2017 02:23
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Dumber question, does anyone self-report bitcoin mining for tax reasons?
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Nov 21, 2017 03:19
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Knifegrab posted:Dumber question, does anyone self-report bitcoin mining for tax reasons? You absolutely should, but a lot of bitcoiners are fygm ancap types who think that taxation is theft so in practice a lot of them don't report poo poo.
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Nov 21, 2017 03:27
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Knifegrab posted:Dumber question, does anyone self-report bitcoin mining for tax reasons? Taxation is theft
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Nov 21, 2017 04:17
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Knifegrab posted:Dumber question, does anyone self-report bitcoin mining for tax reasons? It is the law, though the IRS rules make little practical sense if you actually mined directly. But for Nicehash users its simpler as you are getting paid for work. The law states you are liable for taxes for the value of the bitcoin when you receive it. Though you can probably figure out a hundred exceptions there that nobody would be able to answer. Risk mitigation is big here. If youre running 1000 GPUs in America you better well be filing taxes. If you're running one GPU, thats a decision for you to make.
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Nov 21, 2017 04:47
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1gnoirents posted:It is the law, though the IRS rules make little practical sense if you actually mined directly. But for Nicehash users its simpler as you are getting paid for work. The law states you are liable for taxes for the value of the bitcoin when you receive it. Though you can probably figure out a hundred exceptions there that nobody would be able to answer. How do taxes factor in if you never cash out? With bitcoin prices rising I'm keeping my coins in my wallet for the forseeable future.
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Nov 21, 2017 04:56
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Numinous posted:How do taxes factor in if you never cash out? With bitcoin prices rising I'm keeping my coins in my wallet for the forseeable future. If you can't answer those questions, sell your loving bitcoins.
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Nov 21, 2017 05:09
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Gobbeldygook posted:Why do you think the price of a Bitcoin is going up? Why do you think this will continue? It seems to be influenced by people wanting to launder money and the world seems like a place where people will want to launder more. (sell coins, I want to) Do I have to link a bank account or credit card to coinbase to put money in that wallet (from nicehash) or can I skip that step and just have it chillin as buttcoins?
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Nov 21, 2017 05:35
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You can have Nicehash put it in any wallet you want. Coinbase is the easiest way to turn BTC into actual money, but if you just want to put your Nicehash profits directly into a BTC paper wallet or something similar, you could do that too I guess.
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Nov 21, 2017 05:43
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Risky Bisquick posted:You funnel illicit bitcoin with a trail into nice ash, and get a new currency and wallet trail as output. ash is correct
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Nov 21, 2017 05:59
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Numinous posted:How do taxes factor in if you never cash out? With bitcoin prices rising I'm keeping my coins in my wallet for the forseeable future. If you mined, then you pay income tax on the USD value at the time of block discovery. If you realize any gains, you pay taxes on the gains like you would with selling any other capital asset (ie you made (new value) - (old value) in revenue). It's up to you to keep records of these taxable events (ie the discovery of cryptocurrency in a new block or the sale of cryptocurrencies for some amount of revenue) If you're using Nicehash then you're an independent contractor, so your reportable income is the USD value of the bitcoins upon payment. And like above, selling the bitcoins for USD is considered another taxable event on which you report the capital gains or losses. Also "self-employment tax rules generally apply" according to the IRS. QuarkJets fucked around with this message at 06:37 on Nov 21, 2017 |
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Nov 21, 2017 06:34
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Numinous posted:How do taxes factor in if you never cash out? With bitcoin prices rising I'm keeping my coins in my wallet for the forseeable future. Its explicitly the value of the buttcoin when you receive it, regardless of what you do with it. In that sense its simply treated as a real currency. There are issues with that but... at the end of the day its whats required by law. For someone making an assload of money its a serious thing to tackle. For someone using their gaming GPU to mine, its a moral issue and nothing more (in the current state of affairs)
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Nov 21, 2017 06:39
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Scarecow posted:guess I should fire up my 1950x So seems like NiceHash Miner does not play nice with the 1950x, I can only get 194H/s on each "core" of my TR
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Nov 21, 2017 08:30
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Scarecow posted:So seems like NiceHash Miner does not play nice with the 1950x, I can only get 194H/s on each "core" of my TR what is that total like $2.50?
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Nov 21, 2017 09:39
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Numinous posted:How do taxes factor in if you never cash out? With bitcoin prices rising I'm keeping my coins in my wallet for the forseeable future. HODL!
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Nov 21, 2017 15:38
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I just send 25% of the coins i mine to the silkroad address the government owns and pen that in on my tax return.
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Nov 21, 2017 15:44
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Scarecow posted:So seems like NiceHash Miner does not play nice with the 1950x, I can only get 194H/s on each "core" of my TR For comparison, STH reports the following for stock speeds 1x AMD Ryzen Threadripper 1950X = 1204H/s 1x AMD Ryzen 7 1800X = 537H/s 1x AMD Ryzen 7 1700X = 516H/s 1x AMD Ryzen 7 1700 = 481H/s 1x AMD Ryzen 5 1600X = 451H/s 1x AMD Ryzen 5 1600 =363H/s 1x AMD Ryzen 5 1500X = 361H/s I usually mine @ 630H/s with a Ryzen 1700 @ 3.9
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Nov 21, 2017 15:54
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Well, gently caress you! I'm amusing myself by piddling along at 44H/s with my i3-4170 to keep myself warm!! Might add an R9 280X to the mix soon and really crank things (heat) up!!!
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Nov 21, 2017 16:11
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Scarecow posted:So seems like NiceHash Miner does not play nice with the 1950x, I can only get 194H/s on each "core" of my TR That's actually pretty good and getting more from NiceHash than a GTX 1080.
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Nov 21, 2017 17:25
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Added another 570 today  I can only take so much free money
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Nov 21, 2017 19:51
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https://www.techspot.com/news/71983-cryptocurrency-start-up-vanishes-after-raising-375k-investors.html What a surprise. What even are ICOs supposedly offering?
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Nov 21, 2017 20:08
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By NATHANIEL POPPER OCTOBER 27, 2017 Initial coin offerings have come out of nowhere in 2017 to become the talk of Silicon Valley and Wall Street. Programmers have raised over $3.2 billion this year by selling their own virtual currencies to investors. That is 3,000 percent more than the amount raised using coin offerings in 2016. What is an initial coin offering? Coin offerings are a way for start-ups or online projects to raise money without selling stock or going to venture capitalists — essentially a new form of crowdfunding. The programmers raise money by creating and selling their own virtual currency, generally with rules similar to well-known virtual currencies like Bitcoin. The new tokens are usually designed so that they can be used only on a computing service the programmers are building. Filecoin, which raised $257 million in the largest coin offering to date, is being designed to pay for storage on a global cloud storage network that the creators of Filecoin are promising to build. BET, another coin, is being designed to serve as the chips in an online casino its programmers are promising to build. “Promising to build” is the operative phrase here, because in almost every case the services that will supposedly make these coins valuable have not yet been finished. What does this have to do with existing virtual currencies? These coins are generally inspired by older virtual currency systems like Bitcoin or Ethereum, with a cap on the number of coins that will exist — to provide a sense of goldlike scarcity — and a structure that allows them to operate entirely outside the existing financial and regulatory ecosystem. Investors generally buy the new coins by sending the programmers Bitcoin or Ether (the virtual currency inside the Ethereum network). What’s more, many of the coins are stored, moved around and enabled by other Ethereum technology. But the coins sold in coin offerings are meant to exist independent of Bitcoin and Ethereum, with their own free-floating value. (For a more complete explanation of Bitcoin, click here, and for an Ethereum explainer, click here.) Is there a relation to initial public offerings of shares in a company? The name for coin offerings was clearly inspired by the initial public offerings that companies do to sell stock to investors. But unlike stock offerings, coin offerings are generally designed so that investors don’t get an ownership stake in the start-ups. If the coin does provide an ownership stake, the Securities and Exchange Commission has said, the companies must comply with all securities law. A few coins have done this, but most have tried to avoid it. Investors can contribute as much or as little money as they want in these offerings, which are generally more like crowdfunding campaigns that new projects do on Kickstarter or Indiegogo. Why would anyone pay for these coins? In principle, people buy these coins because they want to use the services on which the coin will be used. So far, though, almost none of the services have been completed. In the meantime, people are buying coins because they are hoping the value will go up. When the Stratis token was released in July 2016, it was worth seven-tenths of a penny. In the fall of 2017, each of those tokens was trading for around $2.95, a 42,000 percent increase. After the initial coin offering, when the programmers sell their tokens for a set price, coins are traded on third-party exchanges through open-market bidding — similar to the way stocks are traded and priced after an I.P.O. The programmers who created the coins generally keep a large stash of coins so that they also benefit if the price goes up. The people betting on the price of these tokens are generally betting that the services promised by the programmers will be completed, creating demand for the coins in the future. Why aren’t these start-ups raising money through venture capitalists? The most obvious reason to do a coin offering is that you can raise more money than you ever could from venture capitalists. The most valuable virtual-currency company that was funded with venture capital, Coinbase, raised $100 million this year, five years after it was founded. The same day that was announced, Filecoin, which doesn’t even have a working product, announced that it had raised over $200 million. Another plus: Start-ups that raise money through coin offerings don’t have to give away ownership of their technology to outside investors. Some programmers look to coin offerings because they can raise money for projects that venture capital won’t fund. Specifically, coin offerings can provide funding to build open-source projects that in the end no one will own, the way that no one owns Bitcoin or Ethereum. Filecoin’s cloud storage network, for instance, would be operated by its users rather than any central company. How do you create your own virtual currency? It is easier than it seems. The software behind Bitcoin and Ethereum is open source, which means that anyone can take the computer code and tweak it to create a virtual currency with slightly different characteristics. There are companies that will do this for you if you are not technologically adept. Convincing people that your new coin will have value is the harder part, and many coins that are released never grow to be worth anything. Some companies have gone the more complicated route of creating their own new software for their coins, with qualities that are very different from Bitcoin and Ethereum. Who can invest in coin offerings? Anyone who has Bitcoin or Ether and is willing to send their money to the creators of a coin offering. Is this illegal? China and South Korea have said it is illegal. In the United States and many other countries, regulators have said some coins should be categorized as securities, like stocks and bonds. If a coin is categorized as a security, it has to follow all relevant securities law, such as registering with the authorities and ensuring that people buying the coins are properly accredited and vetted. Suffice to say, essentially no coin offerings have followed these rules. Many people are waiting for regulators to crack down. Some are expecting that the first targets will be the exchanges where the coins are traded. What happens if the programmers never build what they promise? Investors don’t have much recourse. The most likely outcome will be that the investors will lose the money they put into the project, though people may try to sue. What do real investors think of this? A number of prominent Silicon Valley investors have argued that coin offerings could provide a way to build open-source projects that would not have otherwise received support. Some big names think this will lead to a new generation of open-source internet protocols and loosen the control of big companies like Google and Facebook. Chris Dixon, a partner at Andreessen Horowitz, has argued that “by enabling the development of new open networks, tokens could help reverse the centralization of the internet, thereby keeping it accessible, vibrant and fair, and resulting in greater innovation.” But even sophisticated enthusiasts believe that almost all of the companies currently raising money through coin offerings will fail and lose money for their investors — and probably should not happen in the first place. “Right now, with all of the enthusiasm for crypto assets out there, I am very concerned that nobody is being careful about anything,” Fred Wilson, a partner at Union Square Ventures, wrote on his blog.
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Nov 21, 2017 20:14
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PerrineClostermann posted:https://www.techspot.com/news/71983-cryptocurrency-start-up-vanishes-after-raising-375k-investors.html A variety of amazing tokens of all shapes and sizes!
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Nov 21, 2017 22:39
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PerrineClostermann posted:https://www.techspot.com/news/71983-cryptocurrency-start-up-vanishes-after-raising-375k-investors.html The chance to get it on the ground floor of the next bitcoin of course! So instead of mining coin you buy it directly at a super low price before anyone else has a chance to get on board. Having your money stolen is merely a bonus.
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Nov 21, 2017 23:44
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Smoke is beginning to pour out of Bitfinex (particularly due to their Tether scheme), if you are only in it for burritos rather than THE MOON you might want to consider cashing out at this juncture. My passive mining paid for a good chunk of a new NAS so I'm pretty happy calling it quits. Of course who knows with Bitcoin, it'll probably double in the next month just because I cashed out.
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Nov 22, 2017 03:41
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Just curious what that means for the average schmoe with a GPU he isn't much in the winter?
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Nov 22, 2017 03:53
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Craptacular! posted:Just curious what that means for the average schmoe with a GPU he isn't much in the winter? The equivalent of a bank run without a FDIC. Bitfinex issued a lot of bearer bonds against BTC without the BTC to back them up, and the bill is coming due. There is the potential for BTC to drop severely during one of these events - it may recover in the long term but if you intend to cash out quickly rather than hold forever, you may want to cash out quickly. Or it could be nothing - the market can be irrational for a long time (famously, longer than you can stay short).
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Nov 22, 2017 04:00
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