Crypto Mining

windeguy

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Jul 10, 2004
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Those who get in early on such schemes sometimes make significant money. I suspect we are past that point in time regarding crypto currencies?
Want to mine it? I guess that works to create wealth for now. How long will they be around until the next big thing?

Now crypto is being touted as a hedge against inflation/stagflation for which no other investment is "as good".
I don't buy that, but perhaps they are correct. I remain on the sidelines unless forced to use it.
 
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CristoRey

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Apr 1, 2014
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This country is way too corrupt to attempt Bitcoin mining. As soon as they got wind of what you were doing they'd bleed you dry.
There's a reason no one is running massive Bitcoin farms in Venezuela and the DR is no different.
Take my advice and look elsewhere.
 
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Constanza

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Aug 28, 2021
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This country is way too corrupt to attempt Bitcoin mining. As soon as they got wind of what you were doing they'd bleed you dry.
There's a reason no one is running massive Bitcoin farms in Venezuela and the DR is no different.
Take my advice and look elsewhere.
It wouldn't even make sense to mine bitcoin in the DR considering the high kwh costs.
 

JD Jones

Moderator - Covid 19 in DR & North Coast
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So, a question for all of you crypto experts: What happens when all the coins are mined? What changes?
 
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malko

Campesino !! :)
Jan 12, 2013
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So, a question for all of you crypto experts: What happens when all the coins are mined? What changes?

Some cryptos have a fixed amount of coins, like Bitcoin.
Others dont have a fixed amount, they are inflationary ( like fiat ) or have a burn system ( every transactions burns a certain amount of coins ).


In the case of Bitcoin, every 4 years there is what is called a halving : mining a block gives you half as less Bitcoin as reward. I would need to check, but as a result the last block would be mined sometime in 2030.
 

malko

Campesino !! :)
Jan 12, 2013
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Some are finite, some are not. But in the end, they can just create another crypto coin and mine more.

And these are the same people that love to talk about "fiat" money.

Dogecoin started as joke.............it is now quoted at .15...........

https://www.cnn.com/2021/04/17/investing/what-is-dogecoin/index.html


Respectfully,
Playacaribe2

The world can thank Elon Musk and his tweets for that.
But, hey I am not complaining, I dont own any doge........ anymore 🤣🤣🤣🤣
 
Jan 9, 2004
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The world can thank Elon Musk and his tweets for that.
But, hey I am not complaining, I dont own any doge........ anymore 🤣🤣🤣🤣
I don't blame Elon Musk as much as I do those who continue to believe..................in spite of little understanding of the game they are playing...........and that is ok..............until the game ends..............and they then become shell shocked as to what really happened.

I have witnessed this way too many times.

Crypto's are ponzi-like................and lots of people will be left holding the proverbial bag. I witnessed the same scenario with the largest ponzi-sheme in history................................telex-free.............no one could logically explain it.................but they were all making money...................so no one cared......................until.....................


Respectfully,
Playacaribe2
 
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JD Jones

Moderator - Covid 19 in DR & North Coast
Jan 7, 2016
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OK, so here's another question for you: I get myself a super duper mining computer and crank that puppy up.

It mines away for who knows how long until one day, I mine a bitcoin. Where did it come from?
 
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malko

Campesino !! :)
Jan 12, 2013
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OK, so here's another question for you: I get myself a super duper mining computer and crank that puppy up.

It mines away for who knows how long until one day, I mine a bitcoin. Where did it come from?


It comes from nowhere, it is a newly created bitcoin.

Basically, computers/miners are solving a complex crypto puzzle in order to secure the network, and the reward for doing that is a bitcoin ( or more likely a fraction of a bitcoin ). They are verifying the transactions.
The days of one computer doing that are over, nowadays it has to be a network, ie racks upon racks of ASICs ( application-specific integrated circuit ). I dont think mining BTC with GPUs is possible anymore, other cryptos, yes, BTC no .

Miners also have another "source of income", if you will, by processing transactions before the next block is added on to the blockchain, for eternity ( and no possibility of retroactivity ). They are paid also in Bitcoin, however that Bitcoin ( well fraction of ) comes from the fees paid by the users ( you, me, everybody ) to transact in Bitcoin .
 

windeguy

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It comes from nowhere, it is a newly created bitcoin.

Basically, computers/miners are solving a complex crypto puzzle in order to secure the network, and the reward for doing that is a bitcoin ( or more likely a fraction of a bitcoin ). They are verifying the transactions.
The days of one computer doing that are over, nowadays it has to be a network, ie racks upon racks of ASICs ( application-specific integrated circuit ). I dont think mining BTC with GPUs is possible anymore, other cryptos, yes, BTC no .

Miners also have another "source of income", if you will, by processing transactions before the next block is added on to the blockchain, for eternity ( and no possibility of retroactivity ). They are paid also in Bitcoin, however that Bitcoin ( well fraction of ) comes from the fees paid by the users ( you, me, everybody ) to transact in Bitcoin .
And this ponzi scheme will never run out? Why not if you answer is it doesn't run out?
 

malko

Campesino !! :)
Jan 12, 2013
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And this ponzi scheme will never run out? Why not if you answer is it doesn't run out?


Same as anything..... stocks, gold, any commodity for that matter, any currency, anything really..... they only hold the value that people give it.

Bitcoin is transparent and its supply cannot be modified by a select few, which is a huge leap forward, versus how central banks ( and those behind them ) can manipulate everybody's purchasing power, imho.
As to " will it hold its value or go up in value ? ", well if anyone knew, they would be wealthy beyond our wildest dreams.


Put it this way : if you own 0.28 BTC, you would be part of the 1%.
So the question is would you throw 10k$ at something that potentially ( granted, a very, very low chance ) could make you part of the 1% wealthiest people in the world ?
Well that is the question addressed to you....I got my 0.28BTC for a couple hundred $, so it was a no brainer. 🤗🤗🤗🤗. At worst I've lost a couple hundred bucks ( well, theoretically, in reality I've cashed out many times over ).
 

windeguy

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Same as anything..... stocks, gold, any commodity for that matter, any currency, anything really..... they only hold the value that people give it.

Bitcoin is transparent and its supply cannot be modified by a select few, which is a huge leap forward, versus how central banks ( and those behind them ) can manipulate everybody's purchasing power, imho.
As to " will it hold its value or go up in value ? ", well if anyone knew, they would be wealthy beyond our wildest dreams.


Put it this way : if you own 0.28 BTC, you would be part of the 1%.
So the question is would you throw 10k$ at something that potentially ( granted, a very, very low chance ) could make you part of the 1% wealthiest people in the world ?
Well that is the question addressed to you....I got my 0.28BTC for a couple hundred $, so it was a no brainer. 🤗🤗🤗🤗. At worst I've lost a couple hundred bucks ( well, theoretically, in reality I've cashed out many times over ).
No it is NOT the same as anything.. It is for me, less than any of the other things you mention.

Would I put $10,000 in Bitcoin or any other crypto now? Nope, not a chance I would.
And I certainly did not get in early on the ponzi scheme, so I will forever be out of crypto unless forced to use it.
 
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DR fan1990

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Sep 22, 2020
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Another easy way to lose lots of money. I trade stocks and I keep hearing about someone who knows someone who knows someone who made a lot of money trading cryptos but I never met anyone who actually did

I actually do. I quit my job and I have been living 100% off BTC ever since I moved down here several month ago.
I cashout every month for my daily expenses.

I quit my job because I wanted to leave Canada, as Canada was about to mandate C19 jabs for all travel by air, and I just didn't feel like submitting to this despicable mandate. Or remain a prisoner in my own country.

And since there was no way to keep job while living outside of Canada, I simply quit.

I now have around $115k USD worth of BTC that I have accumulated since late 2020 by trading altcoins. Altcoins are riskier than the good ole bitcoin, BUT if you know what you're doing, you can make a lot more money, and faster, and that's what I did.

HOWEVER that wasn't an easy journey at all, as I was scammed out of $60,000 USD ($80 000 CAD) in summer 2020 by being duped by an online scammer who led me to a phishing link, through which he retrieved my keys and emptied my wallet.
I had taken me made that 3 years to make that $60k and it was all gone in an instant. It was very depressing.
I submitted a complaint to my local police department, and although they were able to located the scammers/hackers, they couldn't legally get them arrested because the a*sholes lived in Nigeria.

There was no hope to retrieve my funds so late 2020, I just started all over again, from scratch, by trading every week with part of my paycheck salary.

By summer 2021, I eventually turned $6k USD into the $60k and learned about security precautions to safeguard my crypto. Then I quit my job
Now, I'm almost at double that figure and living off of the gains.
I still plan to go back into the job market and work though, as I want to save my BTC for retirement.
If I retire when most people do, i.e. in my 60s, that's still 30 years from now so I figure that BTC's value will be much higher than it is today.

It's a holding game really. But like I said it comes with risk. It all depends on the risk/reward ratio you are willing to tolerate. And your personal drive as well.
 

Tamborista

hasta la tambora
Apr 4, 2005
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By summer 2021, I eventually turned $6k USD into the $60k and learned about security precautions to safeguard my crypto. Then I quit my job
Now, I'm almost at double that figure and living off of the gains.

Great story, why don't you scale your trading model into managing a OPM and keep a management fee?
Do you have a record of your P&L?

Even the Oracle of Omaha is jumping in the Crypt:

 

CristoRey

Welcome To Wonderland
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Block chain is a great way to complete transactions and therefor has many practical applications but if push come to shove, I prefer gold.
 
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Jan 9, 2004
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Great story, why don't you scale your trading model into managing a OPM and keep a management fee?
Do you have a record of your P&L?

Even the Oracle of Omaha is jumping in the Crypt:

Clarifying a bit.

Warren Buffet made a loan to Nubank early on (May 2021) at no doubt very favorable terms. Much the same as he did with Goldman and Kraft/Heinz to give a couple of examples.

Inside those loans were option rights to acquire stock at prices much lower than could be had at an initial public offering.

At the time of the loan Nubank was to become, and currently is, Latin Americas largest digital bank. At the time of the loan and the option rights, Nubank did not have any stake in crypto or crypto assets.

It was only until NubBank acquired a company named Easynvest (now named Nuinvest) in the fourth quarter of 2021 that it acquired crypto assets.

So yes, Buffet, who does not like crypto or crypto assets is a reluctant owner.

This hardly qualifies him and/or Berkshire as jumping on the crypto bandwagon.

He does however believe in the future of digital banking as a means to help more people (unbanked) get access to banking and credit...............and of course to continue his successful investing track run.;)


Respectfully,
Playacaribe2
 
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