Anyone here using Bitcoin?

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Forums › Finance and wealth management › Anyone here using Bitcoin?

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34 posts

Geek

#471008 19-May-2011 11:27

All I can say is thanks..........

You've made me decide to go 'hardcore'. Within 3 weeks, I'll have 4 HD5850 on the go.

What do you use to measure wattage to calculate the cost?

I'm in a pool with Slush (mining.bitcoin.cz). Tales me 8 hours to get 1 BTC. With 1 HD5850..

gjm

808 posts

Ultimate Geek

#471009 19-May-2011 11:28

oh well good luck to you guys that are making some dosh out of this. I think getting a purchase order past SWMBO in order to generate bitcoins on what seems like something suspiciously close to a new games computer would be somewhat difficult to say the least

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lokeynz

105 posts

Master Geek

#471012 19-May-2011 11:31

gjm: If people are making 60 - 70 bucks a day thats about 25k a year...is that right? Are some people really making that?

Only since the value skyrocketed a few weeks back but now the value is holding steady/declining while the difficulty of creating bitcoins has increased dramatically and will continue to increase, I think anyone buying mining hardware now will struggle to break even.

Someone earlier said $280 for a 5850, at todays difficulty that will produce 1.35BTC per day, at todays rate = ~11.50nzd per day.

So you'll make about $115 for the next 10 days or so until the difficulty resets again, network growth is hitting record levels of about 6% per day so the next difficulty increase will also be of record levels.

Of course this is assuming the value holds steady, it could go up or with all these gamers only looking to cash out, it could continue to drop.

gjm

808 posts

Ultimate Geek

#471014 19-May-2011 11:36

I went to the Caprica gaming lounge yesterday for a couple of hours. Those guys should wind up all the pc's after hours and mine bitcoins. They have some very nice machines.

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nobz

30 posts

Geek

#471018 19-May-2011 11:45

vfxguynz: All I can say is thanks..........

You've made me decide to go 'hardcore'. Within 3 weeks, I'll have 4 HD5850 on the go.

What do you use to measure wattage to calculate the cost?

I'm in a pool with Slush (mining.bitcoin.cz). Tales me 8 hours to get 1 BTC. With 1 HD5850..

Your welcome. Just make sure you know that there's going to be a difficulty increase this Tuesday (or sometime next week) and you're willing to take that risk if the prices remains the same or gets lowers or even crashes.

I bought those power measurements in ebay that you plug in the wall and you can insert how much you pay per units (kilowatts) into them. Cost like $26.

Looks like you're getting better result with slush compared to me or it was just my luck being crap (and pool's luck).

Edit: Just reread the whole thread and you're wandering how much it would cost me to build my second rig. It would cost me $2400. The MSI 890-FXA-GD70 cost like $350 2 days ago and then bam it now cost $200 woot woot!!!

LennonNZ

2459 posts

Uber Geek

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Trusted

#471029 19-May-2011 12:00

So if I buy 4* HD 6990 and put them in a machine. How much would I make a day?

vfxguynz

34 posts

Geek

#471031 19-May-2011 12:05

Haha, the risk is what makes it fun! :P

Oh cool, I saw them yesterday, just wondered if there was a place more local.

Yeah, I've just calculated it all, and slush is better than deepbit, for me. I might post details later when I get home (7pmish).

Haha typical about the mobo price drop! I bought a Dell XPS M1530 3 days before they released their new line of studio XPS's..

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nobz

30 posts

Geek

#471032 19-May-2011 12:06

LennonNZ: So if I buy 4* HD 6990 and put them in a machine. How much would I make a day?

5.67BTC...Difficulty has just increased like 20minutes ago

and exchange rate is falling as well, currently.

You will make a return but your paypack period or break even will be longer. Look for a used HD5970, don't buy a HD6990 and just overclock the HD5970 to make the same result and eat slightly less wattage.

If you're in windows you only use 4 GPU (note HD5970 and HD6990 is dual GPU) unless you're in Linux.

vfxguynz

34 posts

Geek

#471039 19-May-2011 12:15

Is there anyway to tell when the difficulty is gonna rise?

Bitcoinwatch.com still shows that it's at 157,426

nobz

30 posts

Geek

#471052 19-May-2011 12:28

vfxguynz: Is there anyway to tell when the difficulty is gonna rise?

Bitcoinwatch.com still shows that it's at 157,426

bitcoincharts.com/markets/

Quick summary on how difficulty increases...
If we solved 2016 blocks (somewhere around this figure) in less then two weeks difficulty will increase if not it will decrease.

Most likely there's going to be a 100% or more increase for the next difficulty with this current computing power. It was 1.8Thash/s 4 days ago and now 3.5Thash/s.

So anyone that wants to join this venture now its going to be tough especially us here in New Zealand and our expensive electricity bills.

vfxguynz

34 posts

Geek

#472715 23-May-2011 07:43

It's been a few days, and I have a few BTC....
Nobz, how do you sell them? MtGox doesn't do paypal :-/.

sleemanj

1490 posts

Uber Geek

#472954 23-May-2011 13:45

Those who are mining BTC, don't forget, it is income, and as such it is subject to income tax.

Somebody was claiming above up to $65/day returns, that's 23 grand a year.

---
James Sleeman
I sell lots of stuff for electronic enthusiasts...

cdouble

91 posts

Master Geek

#472971 23-May-2011 14:11

sleemanj: Those who are mining BTC, don't forget, it is income, and as such it is subject to income tax.

Just call them Rugby World Cup Credits and I'm sure you'll be fine.

More seriously, I wonder what the rule would be. Would it be taxed when you cash the coins in for dollars? Or at the price when you mined them? It'd suck to mine them at $10/btc and at tax time they're work $2/btc.

stevenz

2802 posts

Uber Geek

#472973 23-May-2011 14:13

sleemanj: Those who are mining BTC, don't forget, it is income, and as such it is subject to income tax.

Somebody was claiming above up to $65/day returns, that's 23 grand a year.

It's not actual currency as such though, would it be subject to the same terms as standard income, or those such as shares?

If you sell them then is it like selling an asset or treated as pure income?

Would be interesting to know the finer points of how it'd all work.

I don't have the kind of money to build a rig that'd pay itself off, just a 3.5Ghz-quadcore thing with a mid-level GPU, power bill would probably offset any income.

@KnightNZ

sleemanj

1490 posts

Uber Geek

#472991 23-May-2011 14:40

cdouble:
sleemanj: Those who are mining BTC, don't forget, it is income, and as such it is subject to income tax.
Just call them Rugby World Cup Credits and I'm sure you'll be fine.

More seriously, I wonder what the rule would be. Would it be taxed when you cash the coins in for dollars? Or at the price when you mined them? It'd suck to mine them at $10/btc and at tax time they're work $2/btc.

Income in foreign currencies is taxed in the financial year it was made (at the exchange rate applicable at the time) not necessarily at the time you exchange it to NZD

To put it another way, if as a New Zealander in New Zealand I make 100 grand billed in US Dollars, I don't get a free ride from the NZ tax man even if I keep it as USD, when it comes time to do the tax return, I have to use an appropriate FX rate to declare the income and pay the tax as if it were NZD income from the get-go.

Being as it is not exactly an "officially recognised" currency I guess there is no internationally recognised FX rate, but I would expect that the IRD would happily find or set some "authoritative" rate for BTC to NZD if there was any possibility of them collecting tax from you :-)

---
James Sleeman
I sell lots of stuff for electronic enthusiasts...

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