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What is Bitcoin? Where is it headed? What is Bitcoin mining? What Mining Rigs are Available? Return on Invested Capitol Long Term Goals
Bitcoin Benefits • With Bitcoin we join a new digital economy that doesn’t leave anyone behind, essentially making financial transactions open source — something WordPress.com is behind 100%. We’re proud to support bloggers from all over the world by providing a Bitcoin option. So, Bitcoin is cheaper, faster and more private that fiat currencies, bank wires and credit or debit card payment systems. Bitcoins are not subject to counter-party risk so holders do not need to worry about their bank or financial institution failing like Wachovia, Fanny Mae, Bear Stearns, Lehman Brothers, MF Global, etc. and need a bailout that comes from printing fiat currency out of nothing. • So, really, there is no limit to the upside potential of Bitcoin as it continues to suck in capital resulting in an expanding financial event horizon. Gold, with no counter-party risk, is a refuge from the current unstable and failing fiat currency fractional reserve banking and financial system. But Bitcoin is not just a refuge but also a solution to that zombified system. It would be ironic if the massive wealth transfer the gold bugs have predicted goes not to holders of gold but to holders of bitcoins. • And the market has a way of financially rewarding the solutions, instead of refuges, because they add more value to society. And that is what gold’s currency collapse relative to Bitcoin is signaling; a massive wealth transfer has started from holders of assets in the traditional fiat currency system, gold, silver, etc. and other assets to holders of bitcoins.
Bitcoin Benefits • Bitcoin is censorship-resistant or in other words non-politicized currency. It allow users to send any amount of money to any other person instantly without a fee to anywhere in the world without any restrictions whatsoever. • Bitcoin cannot be Inflated or counterfeited • Bitcoin makes payment of taxes more voluntary because the probability of being caught is decreased and even if caught it is impossible to seize the bitcoins without the private key. Plus, their flexibility allows them to be used in many creative ways by estate and tax planners or asset protection specialists. Bitcoins have not been made illegal in any jurisdiction and some jurisdictions like Sweden or France have granted significant protections to Bitcoin entrepreneurs. Plus, there are no silly FBAR or FACTA reporting requirements for bitcoins held in a bitcoin address not held with a third party. • Bitcoin is a digital currency that enables instant payments over the internet. Unlike credit cards and PayPal, Bitcoin has no central authority and no way to lock entire countries out of the network. Merchants who accept Bitcoin payments can do business with anyone. …
Mining Bitcoin in Current Conditions • @ 25 BTC per Block • Difficulty of 3,651,011.63 • @ $29.10 per BTC • Coins per 24h at these conditions 206.6198 BTC • Power cost per 24h 5.40 USD • Revenue per day 6000.24 USD • Less power costs 5994.84 USD • System efficiency 1000.00 MH/s/W
Mining Bitcoin (Worst Case scenario) • @12.50BTC per Block • Difficulty of 10,000,000.00 • @ $6.00 per BTC • Coins per 24h at these conditions 37.7186 BTC • Power cost per 24h 5.40 USD • Revenue per day 226.31 USD • Less power costs 220.91 USD • System efficiency 1000.00 MH/s/W
Return on Invested Capitol Current Conditions Worst Case Scenario Hardware break even 151 days Revenue per 3 Month time frame: $18946.15 USD • Hardware break even 6 days • Revenue per 3 month time frame: $514903.22 USD
Advanced Bitcoin Mining Hardware
Bitcoin Gambling • Three significant Bitcoin-related gambling sites have reported their earnings and statistics for calendar year 2012. Some of the data is fairly revealing giving us a fascinating glimpse into the worldwide growth of bitcoin and gambling. • First up is the venerable SatoshiDice, which is the leading bitcoin gambling site in terms of amount wagered. Responsible for more than 50% of daily network volume on the Bitcoin blockchain, SatoshiDice reported first year earnings from wagering at an impressive ฿33,310. During the year, players bet a total of ฿1,787,470 in 2,349,882 individual bets at an average monthly growth rate of 78%. Earnings were calculated from eight months of data covering May to December, 2012. • With servers based in Ireland and promoted by Erik Voorhees, SatoshiDice is considered a blockchain-based betting game and it is self-described as the “most popular Bitcoin game in the world.” Similar to random number generation, the site uses a method to produce a number between 0 and 65,535 which is then wagered on by making a bitcoin transaction to one of the static addresses representing different payouts. The odds are calculated to give the house an edge of 1.90% with full transparency because all dice rolls and earnings statistics are verifiable using the blockchain. • Operating expenses were minimal in 2012 and the company also paid monthly bitcoin dividends to ‘public’ shareholders which represent 10% of the total 100,000,000 outstanding shares. To invest in the operator and bet on the house, SatoshiDice shares are traded on the MPEx bitcoin stock exchange under ticker symbol S.DICE (see August 19th, 2012 Prospectus). At the current exchange rate of $17.00 per BTC, SatoshiDice is a company valued at $8.9 million.
Government Interference • I maintain that a government ban on bitcoin would be about as effective as alcohol prohibition was in the 1920s. Government prohibition doesn’t even do a good job of keeping drugs out of prisons. The demand for an item, in this case digital cash with user-defined levels of privacy, does not simply evaporate in the face of a jurisdictional ban. One could even make the case that it becomes stronger because an official recognition that Bitcoin is not only a “renegade” currency but a “so-effective-it-had-to-be-banned” currency would imbue the cryptographic money with larger than life qualities. • Ironically, the ban would create something like the Streisand effect . • The Streisand effect is the phenomenon whereby an attempt to hide or remove a piece of information has the unintended consequence of publicizing the information more widely, usually facilitated by the Internet. The term is a modern expression of the older phenomenon that banning or censoring something often makes that item or information more desirable, and leads to it being actively sought out to a greater extent than it would have otherwise been. Unlike alcohol, bitcoin itself might not be considered a consumption good but it certainly makes it easier to acquire and sell certain consumption goods. • The under-banked people of the system would awaken to using bitcoin for eliminating onerous fees or the risk of handling cash. The individuals seeking drugs without violence or prescriptions would understand the imperviousness of sites like Silk Road. The anti-banking crowd would race to get their hands on some bitcoin as a symbolic gesture to weaken bankers’ firm grip on payments. The pro-gambling casino people would all of a sudden realize how play money bitcoin bypasses the ridiculous and religious anti-gambling laws. The asset protection wealth managers would start to become fascinated with esoteric things like deterministic brainwallets and Tor.
Lets Start Mining Now Bitcoin is the Currency of the Future Mining is essentially setting up the backbone of the Bitcoin Network and rewarding those that do it correctly. Current ROIC exceeds 200% Bitcoin is safe for Local and Global implementation.
