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Showing 3 of 3 results by LordSloth
If you look at the various bitcoin exchanges, you notice that some have a higher price than others. MtGox is currently the exchange with the highest rate (when standardized on a common currency). That's indicates an increased risk. People charge more for bit coins on MtGox , because there is a greater chance of them losing their proceeds.
When looking for an exchange, do the following:
Pick one with lower BitCoin Quotes (when standarized against a common currency ie. USD)
From the list of these candidates, pick one with high volume (ussualy goes hand in hand with above)
and tend to choose one in your own country or close by.
If you live in a country, where they tend to shoot you, if you complain; pick a stable democracy instead.
I went with an exchange in my own country. That way, I don't have to travel half way around the world to break somebodies kneecaps, if they defraud me
When looking for an exchange, do the following:
Pick one with lower BitCoin Quotes (when standarized against a common currency ie. USD)
From the list of these candidates, pick one with high volume (ussualy goes hand in hand with above)
and tend to choose one in your own country or close by.
If you live in a country, where they tend to shoot you, if you complain; pick a stable democracy instead.
I went with an exchange in my own country. That way, I don't have to travel half way around the world to break somebodies kneecaps, if they defraud me
I see Bitcoin like the first popular search engine "AltaVista"
Eventually, Google crushed it, so Bitcoin may not be the eventual winner here. First to market does not always guarantee success.
With the current flaws in Bitcoin, I see them like AltaVista. They will shoot up, crash and be replaced with something better.
Right now it takes anywhere from 30 minutes to an hour to confirm a bitcoin transaction. I need this to get down to less than 10 seconds.
I run several eCommerce sites and I take Visa and Mastercard. It takes less than 3-4 seconds to verify the transaction. No way, could I ask the consumer to wait an hour to verify the transaction.
However, with Visa, MC I pay a flat rate of 1.65% per transactions plus fees. Visa and Mastercard is very creative with fees, and with Premium Card Fees added on (yes we pay for your Air-miles Vacation), it often works out to over 3% for a credit card transaction.
Bitcoin would crush Visa and MC for ecommerce transactions, if thee three things happen:
1) The Bitcoin currency must stabilized within a volatility range that one would expect with a major currency.
2) A chargeback mechanism needs to be put in place, to provide a form of trust, or else consumers will continue to use their credit card.
3) and of course, we need a bitcoin debit card (I think one already exists).
Now if all this happens, the banks will suddenly lower the Visa/MC merchant fees to reflect a reasonable profit margin, instead of charging extortionate fees, and making huge profits. Banks are charging the same fees they did in the early 70's when credit card transactions had to be processed individually by hand, without computers. Now it is handled by a interbank payment gateway, that costs the bank, a fraction of a cent per transaction.
The use of plastic money has only been around for the past 50 years. Bitcoin or it successor will eventually be a new paradigm shift, one that the major banks are terrified of.
Eventually, Google crushed it, so Bitcoin may not be the eventual winner here. First to market does not always guarantee success.
With the current flaws in Bitcoin, I see them like AltaVista. They will shoot up, crash and be replaced with something better.
Right now it takes anywhere from 30 minutes to an hour to confirm a bitcoin transaction. I need this to get down to less than 10 seconds.
I run several eCommerce sites and I take Visa and Mastercard. It takes less than 3-4 seconds to verify the transaction. No way, could I ask the consumer to wait an hour to verify the transaction.
However, with Visa, MC I pay a flat rate of 1.65% per transactions plus fees. Visa and Mastercard is very creative with fees, and with Premium Card Fees added on (yes we pay for your Air-miles Vacation), it often works out to over 3% for a credit card transaction.
Bitcoin would crush Visa and MC for ecommerce transactions, if thee three things happen:
1) The Bitcoin currency must stabilized within a volatility range that one would expect with a major currency.
2) A chargeback mechanism needs to be put in place, to provide a form of trust, or else consumers will continue to use their credit card.
3) and of course, we need a bitcoin debit card (I think one already exists).
Now if all this happens, the banks will suddenly lower the Visa/MC merchant fees to reflect a reasonable profit margin, instead of charging extortionate fees, and making huge profits. Banks are charging the same fees they did in the early 70's when credit card transactions had to be processed individually by hand, without computers. Now it is handled by a interbank payment gateway, that costs the bank, a fraction of a cent per transaction.
The use of plastic money has only been around for the past 50 years. Bitcoin or it successor will eventually be a new paradigm shift, one that the major banks are terrified of.
A person would have to be crazy to spend money on an ASIC.
It is much cheaper to mine the script based coins using a GPU. ASIC will never be developed for Script based coins, and if they do, the script algorithm can be changed, to turn the script based ASIC into a brick.
At least with a GPU you can sell your graphics card, if this crypto currency trend crash and burns. With and ASIC card, you might as well throw it in the trash if this happens.
I am currently mining DOGE, and then converting it to Bitcoin.
If I farmed DOGE with my AMD Radion 7870 Graphics card, and then convert to bitcoins, i make $304 a month.
If I farmed BITCOIN with the same GPU directly, I would make 1 cent a month.
I'm not counting power costs, because it is winter, and I can either heat the wreckroom with oil or with my GPU. So power is a trivial cost.
Now next week, there may be a better deal, as the various altcoins go up and down, due to speculation, pump and dump and other factors.
I use dustcoin.com to compare the most popular altcoins, and the profit I can make any given day (Hopefully I can say this, without breaking the TOS, sorry otherwise). Notice that all the Bitcoin type algorithms (SHA-256) earns peanuts, compared to Script type algorithms.
I also donate 1% to the mining pool companies, as this money helps to pay for hardware and infrastructure, and its also good Karma.
Good Luck and Happy Mining.
It is much cheaper to mine the script based coins using a GPU. ASIC will never be developed for Script based coins, and if they do, the script algorithm can be changed, to turn the script based ASIC into a brick.
At least with a GPU you can sell your graphics card, if this crypto currency trend crash and burns. With and ASIC card, you might as well throw it in the trash if this happens.
I am currently mining DOGE, and then converting it to Bitcoin.
If I farmed DOGE with my AMD Radion 7870 Graphics card, and then convert to bitcoins, i make $304 a month.
If I farmed BITCOIN with the same GPU directly, I would make 1 cent a month.
I'm not counting power costs, because it is winter, and I can either heat the wreckroom with oil or with my GPU. So power is a trivial cost.
Now next week, there may be a better deal, as the various altcoins go up and down, due to speculation, pump and dump and other factors.
I use dustcoin.com to compare the most popular altcoins, and the profit I can make any given day (Hopefully I can say this, without breaking the TOS, sorry otherwise). Notice that all the Bitcoin type algorithms (SHA-256) earns peanuts, compared to Script type algorithms.
I also donate 1% to the mining pool companies, as this money helps to pay for hardware and infrastructure, and its also good Karma.
Good Luck and Happy Mining.