I thought my statement was pretty clear, but to clarify - the people of africa benefits if they adapt bitcoin as a currency, but bitcoin benefits very little from adaption in africa, for the simple fact they just dont matter in the big picture of the world economy. Not to be mean, just stating the obvious.

USA, China, and EU is what matters to bitcoins.  So far china is the lowest/worst in term of bitcoin friendly, usa in the lower middle with the recent irs ruling, and EU is what i believe has the best chance to allow widespread adaption/usage to occur.

The entire continent of africa only has a 2.5% of the world nominal GDP, less than that of italy.

Whether africa adapts bitcoin or not, is a non-factor.

yeah except the counterparty risk is through the roof, no different than buying homebrew shares in the trade section, i always thought people are just batsht crazy trusting some guy in a basement to keep mining for them for a 6-12 month period. Cex.io despite all its fault, has proven to be relatively safe in term of running away with your bitcoins and is backed by a large scale mining farm.

i am surprised there isnt more discussion on the FHA and FHM contracts.

With btc at $460, the FHM end of may contract at 0.004BTC per gh looks pretty good, i think that's the lowest price per gh anywhere currently, and cex.io usually carry a premium vs physical hardware due to the ability to easily trade.

Any thoughts?

consider yourself lucky they didnt ban your account outright.

In the off chance this is not an outright scam.  Your cost is $250k / $450 = 555BTC  for 100 TH for 6 months duration.  That is 0.0055BTC per 1GH for 6 months of mining starting in june.

cex.io has end of may contract at 0.004BTC per 1GH,  with significantly less risk in term of hardware setup, maintenance, and outright scam, not to mention it is lifetime not 6 months.

So this looks to be dead on arrival, unless you are just buying cex.io fhm and resell it here. Unfortunately noone here is that dumb, try ebay you may find a few sheep to swindle.

it's just an automated way of reporting your gain/loss and best effort algorithm to match cost basis = sale price. that's been used for decades in the financial market as a way to simplify tax reportings.

Again we are talking about bitcoin as a currency, it doesnt change the fact every single transaction - buy coffer, buy milk, buy toilet paper will need to be reported to irs.  Then you look from the business side what they have to report.

It's just not feasible nor practical. For a currency to work, 1 unit of value needs to always equal 1 unit of value, you cannot apply gain/loss to it - fungibility is destroyed by irs hence the function as a currency is destroyed.

you buy 10 shares of apple stock $700, then bought 10 more shares at $400.  You sell 15 shares of apple stock at $600, then bought 15 shares again at $500 later. Guess what?  they are tracked EXACTLY like that.  You need to figure out your cost basis individually even if it's the same stock.

This is what the IRS ruling does to bitcoins, you need a better understanding before calling the article retarded.

while the concept behind is well intentioned and similar to what your stock broker does.  what we are discussing here is bitcoin as a CURRENCY (not a commodity that trades on the exchanges).

What that means is using it to buy milk down the street, and retails accepting it and give you milk. That was the goal of bitcoin ultimately and what all those payment processors like bitpay is build for.  

This IRS ruling essentially kill it in usa. It's the same as reporting every single penny you earned and spent as capital gains on your form. No business nor individual will accept that, that's why you dont see gold/silver coins/bars accepted as payment in walmart/target.  

There is unfortunately no way around this, unless IRS changes the ruling.

I read a few pages of this thread, and it is obvious most of you have no idea what this actually means.

To give a simple example, it's basically equivalents to require a business (walmart, amazon or mom&pop) OR an individual to file and report EVERY SINGLE bitcoin transaction - what you earned and spent, on schedule D etc.. for capital gain consideration. So if got my paycheck that is 10BTC, spend 0.05BTC on milk, 1BTC on xbox, etc.. i must file each line item detailing the cost basis (usd/btc when i obtained the 10 bitcoin paycheck) and gain/loss (usd/btc) when i spent the said 0.05BTC for milk, xbox etc..

Obviously that can never function.

It effectively in 1 fell swoop destroyed bitcoin as a unit of currency(that can be used for goods/services) in the USA, AND ensures the dollar will never be replaced or lowered in the foodchain.

I guaranteed you companies like overstock and tigerdirect are now having a facepalm moment, consulting their tax attorneys on how to report this mess on their taxes.

It is bad, it removes the main function of bitcoin - as a currency.  Now bitcoin can only be used as a store of value like precious metals, but that only work if people still perceive it has value.  

If you are nervous, you should be. How this all unfolds in the next 12 month will have a material impact on bitcoin and crypto currency as a whole.




no it's not the best possible scenario, what have you been smoking exactly?

Where is cex in all of this?

Looks like it's still going

same thing just happened to me, was actually coming here to post the warning. 40+ bad password attempts from many different IPs.  I immediately transferred whatever btc i have left in cex (not much <1 btc, i never keep anything online) to my cold storage.

anyone with cex io account please be careful, not sure what is going on with that website.

Some IPs that tried to log into my account

85.114.142.172
81.89.96.88
37.218.244.217
204.8.156.142
141.212.108.13

I understand the numbers and we already have bitcoin as proof, why do you think it is not possible to have the difficulty increase by 100x? bitcoin did more than that and litecoin difficulty currently is very low. Even though it is not as vulnerable as sha-256, you will still see significant increase, not to mention the price per ltc is much lower.

Hmm i just plugged below into the litecoin calculator, and it looks like the new titan 100mh will never ROI if difficulty increase is just a modest >10% per? I am sure it will be much more than that in reality.  Using below criteria, dont think i did anything wrong but can someone double check?  this makes no sense that this 100MH is dead on arrival...

1)hardware=10000 USD
2)watt=1000
3)watt/usd=0.15
4)difficulty increase=10%  
5)start mining difficulty=current (which is not true, will be a lot higher)
6)hash rate=100mhs
7)LTC/USD=17.66

https://bitcoinwisdom.com/litecoin/calculator

greed makes many behave like 12 yearolds here.

ps it's time for your nap.

Sadly all the preorders after March is going to lose significant money with 1th 880w boxes at $4000 already with a <7 day delivery, and price will continue to drop as china pump them out like no tomorrow.

I am baffled by the fact their website state the 400gh 400w $1600 cards are sold out with a June delivery. Who in their right mind would preordered those? I have a feeling none bought them and it was cancelled, and cointerra is just blowing hot air.

Terrible situation all around, I hope those who were lucky enough to get theirs in feb are able to ROI.

Looks like the chinese are the ones who ended up able to make and deliver stable miners on time and without completely ripping off the buyers on price - both antminer and the new 1th box are all from mainland china. Who would have thought.....

Why is ghm 2x as cheap as gha? Is cex expect some event to happen in May that will double the difficulty?

Both are way overpriced either way.

read the previous posts, market rate is 0.05BTC per 1 GH.

also i am not sure why everyone is surprised the 2x reward was removed, do you really think cex can basically payout their entire scrypt pool to you guys for free? It's a marketing gimmick, because the fact of matter is most people who gets on a pool stays there and too lazy to reconfig.  So the idea when starting a new scrypt pool is put the hooks in and get everyone on, cex knows once miners switch most just stay. So it's a clever gimmick promoting 2x to get everyone in.  Just take what you got and be happy with it.

ditto, and with the 880W 1TH miners getting pumped out like no tomorrow from china, the disadvantage of antminer's ability to scale is gone.

With a 13%+ cut on profit, any edge to hosted mining is gone too.

I expect price to get within 15% of market rate for hash power in the next 1-2 month.

Since the beginning of the markets when they were still trading on the streets, there is always bubble and burst, but eventually market is always right and corrects it self...before the next bubble/burst happens.

We are in the burst phase in regards to cex mining shares...