Bitcoins – Mining and Trading - Amazon S3

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3 Δεκ 2013 (πριν από 3 χρόνια και 6 μήνες)

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Bitcoins



Mining and
Trading

Jonathan Day, Carpe Diem

jon@carpediem.je

18
th

July 2013

What

is
Bitcoin
?


An open source P2P digital currency


Bitcoin

is a digital currency, a protocol, and a software that enables


Instant peer
-
to
-
peer
transactions; Worldwide payments


Irreversible by design; Almost
no processing
fee


Relies on cryptography and p2p network


no central authority


21 million
Bitcoins

issued over 100+ years


11 million issued to date, worth > $1
bn
, 10%+ changing hands monthly


http://
www.youtube.com/watch?v=Um63OQz3bjo&list=WLDaLW09uZ1LZ
yb6p9C12Aa15PbQpfHG
-
D&feature=player_detailpage


Setting up to use
Bitcoins


Step 1


get a
Bitcoin

Wallet


Step 2


create your
Bitcoin

Address


Step 3

Set up a
Bitcoin

Miner


Step 4


join a mining pool


Step 5


Give up and buy some coins,

or look to Alt Coins ;)


Step 6


Don’t just hoard the coins, use them in
commerce or at least sell them to mitigate price risk


Bitcoin

Wallet


Head to
http://
bitcoin.org/en/choose
-
your
-
wallet


Download
Bitcoin
-
Qt


Use a software wallet not an online one!


Encrypt with a strong password


Don’t Lose !!


Make several backups on offline media


Lots of space and time


9 gigs and growing


Has built in mining capability

Bitcoin

Wallet

Bitcoin

Address


Using your Wallet software, create a
Bitcoin

Address


You can create additional addresses as often as you
need


Usually looks like this:


1NJhki2Nhtd191tHkVuBoYiEBuKHemh5MZ


Or you can be less anonymous, like this:


1
JonDay
wo5MmiBdvtacKw39EB53VtpqsUe

Bitcoin

Address


Anonymous?

Mining


Note


most
Bitcoin

users don’t mine. It is a
competitive and fast moving business


Initially


CPU in your PC


Rapidly moved to AMD GPUs for 50
-
100x gain


600
mh
/s, 300w power


Development of FPGA devices


800
mh
/s, 60w, power costs becoming important


Development of ASIC


100x increase


60+
gh
/s, 400w

Mining Software


Best option is currently ‘
cgminer
’ (or GUI Miner)


http
://ck.kolivas.org/apps/cgminer
/


Mining Pool


Solo mining with
Bitcoin

is now a non starter,


Join one of the following Pools:


Slush
-

https://mining.bitcoin.cz/


BTC Guild
-

https://
www.btcguild.com




Mining Equipment


Started with the nice idea of a ‘gaming rig’ that would
pay for itself; something like:






Mining Equipment


But I was a year late and a Dollar short


This was the
average rig by the time I started






Mining Equipment


BFL


FPGA to the rescue


$500 to buy


$10 per day income


60 watts


832
mh
/s


50
-
25 Coin
payout

drop








Alt Coins


Litecoins

with a Gaming Rig


3 x 7950 GPU


1000 watts


Very hot


$2
-
3 per day









USB
-

ASIC


The same power as a high end graphics card


Same price


But 5 watts
vs

300+


$1 per day


No payback


But no heat!








AVALON
-

ASIC


ASIC is here


66
gh
/s


750 watts


$1500


10 day ROI


Now £100
pd







The Beast








3 x 80
gh
/s


35 degrees +


3 kw


Equiv

to 250 GPUs







Mining Difficulty


SkyNet

???


+20% per 12 days, 225 TH/s or c 1m GPUs






Mining Conclusions


Too late to get into
Bitcoin

mining due to:


Difficulty rising 1.5% per day


ASIC miner rigs the only viable option


3 month delays to get an ASIC miner



Other options for mining:


CPU


Try
PrimeCoin



GPUs
-

Litecoin



the Silver to
Bitcoin’s

gold









Trading


B$ made the news due to extreme price rises and crashes


Due to day traders getting interested










Trading


Lots of online ‘Bureau De Change’ to swap $/£ to B$


MtGox.com, Cryptsy.com, BTC
-
e.com


Slow, KYC, fees, but works










Volatile ?



Compared to ?


Gold has dropped c 25% in 2 months!








Buying
Bitcoins






New provider just arrived on the market:


Bittylicious.com


Swaps GBP to B$ in real time for 1% fee


Works from Jersey










Using
Bitcoins




Any ecommerce sites should check out BitPay.com


No set up cost


No currency risk


Minimal fees


Access to $1bn worth of custom












A Gift


Carpe Diem
BitCoin

‘Faucet’


First 20 people to set up a Wallet and
Bitcoin

Address and
send the address by email to
jon@carpediem.je


Will each be sent 0.25 BTC


c £15














How to spend your
Bitcoins


Go to carpediem.je


Use your B$ to get


Xero 4 Dummies


For Free!














Opportunities for Jersey


Gain revenue for ecommerce sites easily


Tourism profile for coffee shop / pub


Potentially good tax opportunities



Questions?