i will be pretty upset if the 7xxx comes out only marginally better for mining. Because i just sold both 5970 at $300 a pop on ebay getting ready for the 7xxx series. Miner is down right now waiting for the new card to release.

http://www.cnbc.com/id/45030812/

The Pros And Cons Of Biting on Bitcoins
Published: Wednesday, 23 Nov 2011 | 10:09 AM ET Text Size
By: Constance Gustke,
Special to CNBC.com
      

If you love edgy bets, the Bitcoin may be for you.

Only a few years old, this virtual currency has been on a roller coaster ride. Last year, Bitcoins traded for only a few pennies. Then in June, Bitcoins soared to over $30 a coin, making it a top-performing currency. More recently, they've traded in the low- to mid-single digits — still a huge gain for early investors.

A fiat currency used in Internet commerce, Bitcoins aren’t pegged to an outside barometer. Instead, their worth is determined by a computer algorithm invented by an anonymous, shadowy programmer. No clearing house, government agency or mint watches over them. Instead, peer-to-peer networks dispense and monitor coins, which can be exchanged for dollars.

Given their newness, novelty and volatility, Bitcoins have passionate fans — and critics.

“This is a long-term, high-risk investment,” says Patrick Strateman, a software developer and Bitcoin investor. “Some people are speculating. But others are holding on for much higher returns.”

These wild fluctuations make Bitcoins a difficult investment for average investors, though. Bitcoins have been known to go from $17 a coin to pennies in the blink of an eye.

The coins have also created Bitcoin millionaires, who were early investors. Investment bubbles may even just be part of Bitcoins birthing drama, say fans. Bitcoin lead developer Gavin Andresen has predicted that there will be between one and five Bitcoin bubbles by 2015.

This high-stakes currency does have some key strengths going for it too.

Supply is limited. The Bitcoin algorithm mimics dwindling gold or other precious metal supplies. And the algorithm slows coin issuance by half every four years. Today, there are 7.5 million Bitcoins. The ceiling is 21 million, when no more Bitcoins will be issued.

Also, lots of people want to see Bitcoins succeed, since they’re riding strong anti-government sentiment.

“This is a truly Democratic currency,” says Donald Norman, spokesman for the Bitcoin Consultancy in London and who sees Bitcoins either growing wildly or dying. “No one can manipulate it. It’s a new tool.”

The biggest hurdle to Bitcoin’s value? Lack of widespread use. The problem is that so far Bitcoins aren’t accepted in everyday commercial transactions, says Jon Nadler, a senior analyst at Kitco Metals. “It’s an underground, counter currency,"

That view will have to change before Bitcoins are widely used, he adds; if and when Bitcoins gain in acceptance, their price is sure to be driven up.

For those with strong stomachs,Mt. Gox is the primary exchange site for investing in Bitcoins in the U.S., accounting for 90 percent of transactions from dollars into coins. At the unregulated site, commissions depend on the amount bought. For less than 100 coins, it’s 0.60 percent per transaction.

However, security has been a problem. In June, the Mt. Gox site was hacked, causing Bitcoin prices to quickly plunge from $17.50 to pennies. These issues have been largely resolved though, says Strateman.

“Mt. Gox has made significant security improvements, rewriting the site from the ground up,” he says.

Also, a small market means that large purchases can shift Bitcoin values. Total volume is a small fraction of that for big ETFs that trade gold, for example.

“The problem will be fixed as the market grows,” Stratement adds.

This volatility —and lack of transparency — has scared away some investors and critics. Bitcoins currently lie outside U.S. government regulation and New YorkSenator Charles Schumer has expressed concern that they’ll be used for money laundering and other shady practices since the coins can’t be tracked.

“Bitcoins are a networked global currency,” explains Chris Skinner, chairman of the Financial Services Club in London. “They can’t be regulated because they’re open sourced.”

Norman is upbeat, though, about Bitcoins future. “A lot of speculators have left,” he says, adding that inventing the world’s first decentralized currency takes time.

Others have doubts.

“You can’t create an alternative currency,” says Nadler. “The dollar isn’t dying.” Yet even Nadler adds that Bitcoins, only cobbled together in 2009, haven’t gone through their life cycles yet.

But, counter other experts, no one really knows what’s going to happen.

“Bitcoins are best suited to investors comfortable with startups,” says Skinner. “They’re still high risk, and I wouldn’t bet the farm on them.”

Anyone doing this yet? There must be a great market for naked short selling of this stuff. Come on
exchanges and you Bitcoin bulls, there is a market waiting for you to put
your money where your mouth is and offer naked short selling!

Over 127,000 Bitcoins have been stolen!



When stolen they were in the form of dollars...


This is a huge hit for the Federal Reserve Note as a currency...this should send the dollar spiraling downward until such loopholes can be fixed.

yeah but if something happens to your machine or if that usb drive is corrupted, it's basically the same thing if not worse. Your argument is null.

I think most people here recognize (at least now) that keeping a lot of bitcoins online is fairly unwise. And that keeping one's entire stash in someone else's hands—whether a few coins or 25k—is just nuts.

That said, I'll ask you, what do you say to those wanting to spend their bitcoins on the go, wherever they may be? Keeping in mind that not everyone can setup an ssh to their home computer running bitcoin.

Holding them in your own client wallet has risks as well. Mainly due to user error... but user error is a risk. For this reason, it may make sense for people to store some amount online with exchange or ewallet, and some offline.

For a casual user with low amount of Bitcoins, I would not recommend even bothering with client software.

Online services will get more trustworthy over time as the market weeds out the bad ones. But it's very important for anyone involved with Bitcoin to understand that anywhere they are stored carries risks. Learn the risks and act accordingly. This is the price we pay to be early adopters of this new system without the taxpayer subsidized insurance of the FDIC =)

I have my first 3 running at 825/300 doing 380Mh/s per GPU. Anything above this seems to be unstable since you are pulling so much juice through the motherboard. You would probably need 16x extenders with the extra molex to be able to do higher Mh/s per GPU.

Is there a reason for deepbit to be so popular despite it's being popular anyway?

I mean they charge the highest percentage and all these 'advantages' they offer like paying for invalid blocks is a statistical zero sum game...