Ill use my simple logic on it. I have never had anyone bragging on or selling me door to door anything that was worth a rats azz. That includes exchanging my hard earned real money that I can take to the pharmacy and get script, the grocery and get roast and the post office and get stamps......for a made up currency exchange that I can’t stuff in my pocket. Womp.....there it is.Originally Posted by dmc
We have been mining for the past 4 years with my son. We use some of the profits to pay for the electricity. We are happy campers at this point. When it gets high we cash out 1 or 2 coins to lock in our profits. We have all taken many nice vacations with the profits. It is work for my son because he has to keep on top of things because stuff changes all the time but he enjoys doing it.
Terry, can you explain the procedure whereby you buy and then sell for a profit? I am unclear as to meaning of words you are using, like "mining."
I am NOT the brains of this operation. My son is and has spent a ton of time doing all this. Basically mining is with computers that are solving complicated math problems using computers. But the electricity to run them are not cheap. My son and DH built all the computers and we put them in our basement because it is important not to overheat them. So you are earning crypto currency of some type. So we initially invested 2k for the computers and my son more. Eventually the computers become outdated and won't earn $ so he sells them. The newer miners you can buy. It is work on his part because the miners go down and you have to restart them, etc. He has also traded coins from one type to another to make a profit. You also have to keep track of what is occurring in the Bitcoin world to keep your profits safe before you cash out. Some friends of ours lost their profits when they did not move them into a secure wallet like my son kept telling them to do. Basically my son handles everything and gives us a report showing our earnings, etc. In the past 4 years my son and his wife have earned after expenses 50k and us about 24 K. Right now we each still have 11 coins each and Bitcoin hit 9459 a few days ago. You don't realize profit until you cash out and my husband and son are pretty sure it will go much higher. If it all went away tomorrow we are still ahead of the game. Obviously you need the understanding and skills to make this work which I don't have.
I have a lot to learn about this. My SIL has a massive computer and a server of his own in the basement and I suspect he is doing a bit of mining himself. But I have to ask, being the cynic that I so proudly proclaim....what does one do to “earn” profits. When someone loses their investment...does that mean people like you can profit? I have an understanding of fraud as it relates to the financial world.....bitcoin is lost on me though.
Our friends were holding their bitcoin in a wallet that was secure at one time but something happened and it wasn't. My son had read about it and notified them repeatedly by email and called them. It just disappears because it is crypto currency and I don't think anyone else profited. You earn $ by solving the algorithms is my understanding. Originally 6 families went in on this venture and my son took a small percentage for managing everything. Everyone made $. Then 1 set of friends wanted their profits to manage themselves. My son knew what was coming because he stays on top of things and moved everyone's profits but they ignored his warnings. You can't be successful at this unless you understand it and keep up with what is happening all the time.
Terry, I am more confused than before--are you saying you have computers running all the time, solving algorithms? Why does that result in gaining bitcoins? What is a wallet?
Yes we have 9 miners (computers) running 24-7 for the past 4 years. You are being paid to solve the problems. The more difficult the problem you get more $. It also depends on how many people are mining. The less competition the more $. There are many places where you hold your coins until you sell. A wallet is one of those. Unless you cash it out you have to hold it somewhere virtual. My son has all the information with passwords etc in our safe so if he dies we can get the $ for his wife and us. If him and my DH both die at the same time my DIL and I are in trouble. Although my stepson being an IT guy would rescue us)
Im going to make this a comment and not a question so you don’t feel obliged to answer and I don’t want to sound accusatory or a little too nebnosy......is that a word...anyway you know my intentions.Yes we have 9 miners (computers) running 24-7 for the past 4 years. You are being paid to solve the problems. The more difficult the problem you get more $. It also depends on how many people are mining. The less competition the more $. There are many places where you hold your coins until you sell. A wallet is one of those. Unless you cash it out you have to hold it somewhere virtual. My son has all the information with passwords etc in our safe so if he dies we can get the $ for his wife and us. If him and my DH both die at the same time my DIL and I are in trouble. Although my stepson being an IT guy would rescue us
The obvious question is ....doesn’t this unsecured crypto currency give you a little of the heebeegeebees. And it would seem vague guidance from the IRS could be a bit of a
landmine. But hey, I know nothing....I’m still saving change in a Pooh Bear.
The underlying scheme of the current bitcoin technology is a bit silly if you think about how it scales. Fine in a lab or for initial adopters, a bit non-eco if it wants to be a generally-useful currency:
https://spectrum.ieee.org/energy/pol...to-run-bitcoin
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