Anyone else mining

[GTIfan99]

Help me understand this.

I work or invest and I get a piece of paper in my pocket, because I provided something or value to the economy (labor or investment capital) and the only reason it's worth something is that the it's backed by the US government. Same if I'm in Norway, their currency is only worth something because their government and central banks say it is. Before that, we used commodities to as units of exchange. They had direct, tangible value, but it's hard to carry 100 bushels of wheat in your pocket.

Block chain currency, I buy a $2500 computer and I "mine" currency. After "working in the mines" all day (this appears to be the thing of value the "miner" provides to the currency), I can convert this digital currency into a piece of paper that the US government says is worth something, after deducting my costs?

That really sounds legit to you guys? What am I missing? This sounds like a money laundering pyramid scheme. Where does the currency come from in the first place? What gives it value? I know that the piece of paper in my pocket only has value because it's backed by the largest economy in the world and it's ability to generate economic activity and the governments ability to collect a percentage of that activity. Why is any digital currency worth anything? Genuinely want to know.

In general, currency is just a way to store value and exchange for things of value and need to meet some basic elements to be considered currency. Scarcity, divisibility, utility, transportability, durability, and counterfeitability. Block chain currency meets doesn't meet two of those criteria, durability and utility. So what exactly gives it value?

 

[the]

Any plans to become a validator before ETH2 rolls out?

Not currently, the entry requirements are a little rich for me. However, the fact that is even happening gives me good vibes about the future of the coin.

with this one simple trick? Banks will hate this!

Fair enough, I tried to be as transparent as possible about the startup requirements for the project. I know you were having a laugh, but I should point out I believe holding the crypto will be far more important than selling it at its current price to reach a break-even point. To be clear though, you can start mining Eth with a 1660. 1660 builds are 3 years old at this point and the launch price was around $220. That is a mid-range budget card at best, we're talking $1500 computer build as the high end.

 

[quadiste]

Never tried it. But a friend has been trying to convince me to check it out.

 

[the]

Interested... have a 5700XT on one system and a 1060 on the other. Neither do anything while I'm at work.

Hashing rate
5700XT ~50 MH/s
1060 ~20 MH/s

I am spitballing your power consumption here, and your cost per kWh will have to be referenced against your city website.

 

[the]

That really sounds legit to you guys? What am I missing?

I felt the same way 8 or so years ago when Reddit was yelling about Dogecoin the first time. Back then you could mine a few hundred coins a day on a single video card. I sold thousands of coins for $10 each to strangers on the internet. Today the coins I essentially gave away for tens of dollars will sell instantly for thousands. I gave away about 16K USD in Dogecoins.

After your first cash-out these kind of questions tend to disappear. If you are strongly opposed to this I will not win you over, nor would I have the energy or will to do so. Ethermine makes 1% off of you for your mining effort, so for me they will make about $40 to my $4000 in a year.

This sounds like a money laundering pyramid scheme.

All I can really say is do your due diligence. I'm certainly not an expert on crypto or blockchain, but I can say the more people mining, the more difficult it becomes to make money. Pyramid schemes are social monsters that depend on taking advantage of hype. Crypto mining tells you up front the more people doing it, the lower the profit.

Where does the currency come from in the first place?

Here's an article explaining it on Investopedia

What gives it value?

Explained here better than I could do.

 

[GTIfan99]

I felt the same way 8 or so years ago when Reddit was yelling about Dogecoin. Back then you could mine a few hundred coins a day on a single video card. I sold thousands of coins for $10 each to strangers on the internet. Today the coins I essentially gave away for tens of dollars will sell instantly for thousands. I gave away about 16K USD in Dogecoins.

After your first cash-out these kind of questions tend to disappear. If you are strongly opposed to this I will not win you over, nor would I have the energy or will to do so. Ethermine makes 1% off of you for your mining effort, so for me they will make about $40 to my $4000 in a year.


All I can really say is do your due diligence. I'm certainly not an expert on crypto or blockchain, but I can say the more people mining, the more difficult it becomes to make money. Pyramid schemes are social monsters that depend on taking advantage of hype. Crypto mining tells you up front the more people doing it, the lower the profit.

Here's an article explaining it on Investopedia

Explained here better than I could do.

Based on those links, it's not only money laundering, it's tax evasion too. You really don't see that? The more people in a pyramid scheme, the harder it is to make money too..... Just saying. Just because you're making money in an unregulated money laundering and tax evasion scheme doesn't mean it's a good idea or it all won't collapse at some point, like when it gets regulated.

 

[the]

Based on those links, it's not only money laundering, it's tax evasion too. You really don't see that? The more people in a pyramid scheme, the harder it is to make money too..... Just saying. Just because you're making money in an unregulated money laundering and tax evasion scheme doesn't mean it's a good idea or it all won't collapse at some point, like when it gets regulated.

No, you are required to provide government ID when you sign up for a Coinbase account. It's only tax evasion if you decide not to disclose your earnings on your taxes, and you only pay taxes on it when you withdraw it. Coinbase has the same short/long capital gain tax rate setup as any stock-based investment. So yea, if you're already a criminal it might be money laundering and tax evasion. If you're not a criminal and you pay your taxes, you'll be fine.

 

[brat_burner]

No, you are required to provide government ID when you sign up for a Coinbase account. It's only tax evasion if you decide not to disclose your earnings on your taxes, and you only pay taxes on it when you withdraw it. It has the same short/long interest setup as any stock-based investment. So yea, if you're already a criminal it might be money laundering and tax evasion. If you're not a criminal and you pay your taxes, you'll be fine.

I was about to post an IRS link..... but it was from 2014 lmao

 

[Dog Dad Wagon]

And Coinbase is HEAVILY regulated. It’s 150% in the IRS/Fed’s pocket.

 

[gbar]

In general, currency is just a way to store value and exchange for things of value and need to meet some basic elements to be considered currency. Scarcity, divisibility, utility, transportability, durability, and counterfeitability. Block chain currency meets doesn't meet two of those criteria, durability and utility. So what exactly gives it value?

Funny of you to bring up scarcity

Jokes aside, its value is created by a social agreement of value and the utility it provides. Ethereum has an excellent ecosystem of financial tools being built outside the reach of centralized banking. It might not be every ones cup of tea, but that doesn't mean its wrong!

 

[gbar]

Not currently, the entry requirements are a little rich for me. However, the fact that is even happening gives me good vibes about the future of the coin.

Agreed, I'm waiting for Rocketpool nodes to launch because they only have a 16ETH minimum. The coming year will be very exciting indeed.

 

[jimlloyd40]

Based on those links, it's not only money laundering, it's tax evasion too. You really don't see that? The more people in a pyramid scheme, the harder it is to make money too..... Just saying. Just because you're making money in an unregulated money laundering and tax evasion scheme doesn't mean it's a good idea or it all won't collapse at some point, like when it gets regulated.

It's been around long enough for the government to have decided it's illegal and they haven't.

 

[Saabingti]

Hashing rate
5700XT ~50 MH/s
1060 ~20 MH/s

I am spitballing your power consumption here, and your cost per kWh will have to be referenced against your city website.

Because I don't know anything about anything - can I mine to the same wallet from two different IP addresses? Not trying to move the 1060 to the 5700xt system and then back every morning/afternoon

 

[the]

Because I don't know anything about anything - can I mine to the same wallet from two different IP addresses? Not trying to move the 1060 to the 5700xt system and then back every morning/afternoon

Yes, because the configuration of your wallet only cares about the eth address. Regardless, I am assuming these machines are plugged into the same router, so they have the same public ip address anyway.

 

[GTIfan99]

It's been around long enough for the government to have decided it's illegal and they haven't.

You're missing the point. It's untraceable, so though the currency isn't illegal, the activity being transacted can be and it's unregulated.

Once crypto currency is regulated, it's worthless.