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Bitcoin Mining Rate In 2009

A Brief History Of Bitcoin Mining Hardware

A Brief History Of Bitcoin Mining Hardware

A brief history of bitcoin mining hardware Bitcoin mining was once nothing more than a lucrative hobby for nerdy cryptocurrency enthusiasts. The only hardware required, in the beginning, was a simple computer. Things have changed a lot in less than 10 years. In 2009 the first bitcoin miners used standard multi-core CPUs to produce BTC at a rate of 50 per block. If you had a couple computers lying around with decent specs you could have earned about five dollars a day. The difficulty of mining (amount of computing power necessary) was so low then it was worth it for hobbyists and crypto nerds to participate. Meet the first bitcoin miner: a regular old CPU. Today, mining 50 BTC would reward you in excess of $434,000 per block. A little over a month ago, when it was trading at nearly $20K, that same nerdy hobby would have netted you nearly a million dollars a pop. But, if you are going to hop in your time machine dont go back to ancient 2009. It was a strange time where people used GPUs to play video games, instead of playing them with cardboard like we do in the present. So, wed suggest dialing your Deloreans date display to 2010 and bring pizza. Arguably, bitcoins first valuation didnt come from a giant company, it came from a hungry dude named Lazlo Hanyecz who, in May 2010, posted the following to Bitcointalks forums under the subject Pizza for bitcoins? : Ill pay 10,000 bitcoins for a couple of pizzas.. like maybe 2 large ones so I have some left over for the next day. I like having left over pizza to nibble on later. You can make the pizza yourself and bring it to my house or order it for me from a delivery place Eventually someone took him up on the offer and Hanyecz ended up eating a meal that, only eight years later, would be worth $8.6 million. More importantly, Continue reading >>

This Man Bought $27 Of Bitcoins In 2009 And Theyre Now Worth $980,000

This Man Bought $27 Of Bitcoins In 2009 And Theyre Now Worth $980,000

The one-year rise of bitcoin's price. Source: CoinDesk Bitcoin Price Index It turns out that Koch's frivolous technology spending, against his girlfriend's wishes, actually turned out to be a great investment. I buy a lot of technical little things that I never have time to use, and this was the worst of all, the fact that I was buying fake money ," Koch told NRK. Its not fake anymore, at least not to Kristoffer Koch. Many people have become wealthy as a result of bitcoin's rise, although stories like this are rarely in the public eye. There's the story on the Bitcointalk forums about Kevin, who purchased259,684 BTC for under $3,000 in 2011 . Then there isErik Voorhees, who founded the bitcoin gambling site Satoshi Dice and sold it for 126,315 BTC , worth about $24.7 million at the current bitcoin price. And The Verge reported earlier this year that Satoshi Nakamoto , the Bitcoin networks mysterious founder, has an address with over one million bitcoins . Of course, we shouldn't forget about the person who bought two pizzas for 10,000 bitcoins back in 2009 . Now, if only that person had kept them, or perhaps forgot about them and rediscovered them years later like Kristoffer Koch did. The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies . Have breaking news or a story tip to send to our journalists? Contact us at [email protected] . Continue reading >>

Miner Problem: Big Changes Are Coming For Bitcoin's Working Class

Miner Problem: Big Changes Are Coming For Bitcoin's Working Class

Miner problem: big changes are coming for Bitcoin's working class New chips from Butterfly Labs, a leading Bitcoin equipment manufacturer, promise speeds of 4.5 gigahashes per second to 1,500 gigahashes per second. Jim OShea, a web programmer, gadget lover, and family man living in Pennsylvania, became a digital gold miner in June of 2011. The resource he mines is not World of Warcraft currency, personal data, or fancy new domain names. Its Bitcoin, the internet-native currency that many believe has the potential to become a revolutionary new universal currency independent of governments, banks, and PayPal. OShea has 24 computers running constantly in a shed behind his house, making Bitcoins. "My setup is kind of... ghetto. I have bugs crawling around on my rigs and theres dust and pollen and cigar smoke," he told The Verge recently by phone. "I'm out here now, I dont know if you can hear them in the background. Can you hear the hum?" The race to mine Bitcoins has drawn a rush of digital '49ers Bitcoin has been described as cash for the internet, but gold is a more appropriate analogy. Anyone can "mine" Bitcoins on their own computers by running a program thats designed to produce a 64-digit number in a resource-intensive way. This program randomly computes a cryptographic "hash" over and over until the result is below the number the network is looking for. The network rewards the first miner to get the right answer with 50 Bitcoins and then the process starts again. Only 21 million will be created in total, mimicking the scarcity of a precious metal. The race to mine them has attracted a rush of digital 49ers. There are many, likely thousands, like OShea. "Other miners are more organized. Theyll rent this warehouse and wire it and build all these beautiful racks," he Continue reading >>

Mining Coins On A Quadcore In 2010 (aka Why I Want A Time Machine) : Bitcoin

Mining Coins On A Quadcore In 2010 (aka Why I Want A Time Machine) : Bitcoin

Do not use URL shortening services: always submit the real link. Begging/asking for bitcoins is absolutely not allowed, no matter how badly you need the bitcoins. Only requests for donations to large, recognized charities are allowed, and only if there is good reason to believe that the person accepting bitcoins on behalf of the charity is trustworthy. News articles that do not contain the word "Bitcoin" are usually off-topic. This subreddit is not about general financial news. Submissions that are mostly about some other cryptocurrency belong elsewhere. For example, /r/CryptoCurrency is a good place to discuss all cryptocurrencies. Promotion of client software which attempts to alter the Bitcoin protocol without overwhelming consensus is not permitted. Trades should usually not be advertised here. For example, submissions like "Buying 100 BTC" or "Selling my computer for bitcoins" do not belong here. /r/Bitcoin is primarily for news and discussion. Please avoid repetition /r/bitcoin is a subreddit devoted to new information and discussion about Bitcoin and its ecosystem. New merchants are welcome to announce their services for Bitcoin, but after those have been announced they are no longer news and should not be re-posted. Aside from new merchant announcements, those interested in advertising to our audience should consider Reddit's self-serve advertising system . Do not post your Bitcoin address unless someone explicitly asks you to. Be aware that Twitter, etc. is full of impersonation. Continue reading >>

Five Years Of Bitcoin In One Post

Five Years Of Bitcoin In One Post

By Timothy B. Lee By Timothy B. Lee January 3, 2014 Follow @binarybits The world's first fully decentralized cryptographic financial network, Bitcoin, launched five years ago today. The years since then have been a wild ride. The currency's value has risen from nothing to billions of dollars, and millions have been invested in Bitcoin-related startups. Here's a brief synopsis of Bitcoin's most important milestones. Jan. 3, 2009: Satoshi Nakamoto launches the Bitcoin network by creating the "genesis block," the first entry in Bitcoin's global transaction register. It includes the following text: "The Times 03/Jan/2009 Chancellor on brink of second bailout for banks." Jan. 9: Nakamoto announces Bitcoin version 0.1, on the Cypherpunks mailing list. Previously, in November 2008, he posted a paper to the list that explained the design of the Bitcoin network. Jan. 11: Some people immediately recognize that if Bitcoin catches on, its early users will get rich. Hal Finney estimates that if Bitcoin became the world's reserve currency, each Bitcoin could be worth as much as $10 million. "The possibility of generating coins today with a few cents of compute time may be quite a good bet," he says. Nakamoto agrees: "It might make sense just to get some in case it catches on." Finney mines bitcoins for a few days, but then he turns the program off because it makes his computer run too hot. Jan. 12: The first Bitcoin transaction occurs, as Nakamoto sends some Bitcoins to Finney. Aug. 15: Bitcoin is slowly attracting users. Tyler Gillies sends a note to the bitcoin-list e-mail list. "i just downloaded bitcoin, epic piece of software. the digital cash age has arrived." It was the only post to the mailing list that month. Dec. 30: Growing interest in Bitcoin leads to the first increase Continue reading >>

It Pro Says He Threw Out 7,500 Bitcoins, Now Worth $7.5 Million

It Pro Says He Threw Out 7,500 Bitcoins, Now Worth $7.5 Million

IT pro says he threw out 7,500 bitcoins, now worth $7.5 million As Bitcoin hits $1,000, man says bitcoin-filled hard drive is in a landfill. by Jon Brodkin - Nov 27, 2013 5:15 pm UTC Many people have a tale of a lost or broken hard drive containing some bit of precious data they wish they could recover. But perhaps no one on the planet has thrown out a hard drive as valuable as the one James Howells says is now buried in a landfill. According to an article inThe Guardian today, Howells threw out the hard drive, "rescued from a defunct Dell laptop," this past summer. "And then last Friday he realised that it held a digital wallet with 7,500 Bitcoins created for almost nothing in 2009," the story notes. Howells, an IT pro, says his mistake likely occurred in mid-July, at which time a single bitcoin was worth about $90 . Today, the value of a single bitcoin passed $1,000 for the first time, making 7,500 bitcoins worth $7.5 million. According toThe Guardian story, Howells did not have a backup. The drive he allegedly threw out "contains the cryptographic 'private key' that is needed to be able to access and spend the bitcoins; without it, the 'money' is lost forever." Howells says he mined the 7,500 bitcoins in 2009. "Howells stopped mining after a week because his girlfriend complained that the laptop was getting too noisy and hot while it ran the programs to solve the complex mathematical problems needed to create new Bitcoins,"The Guardian says. He later dismantled the laptop for parts after it broke, keeping the hard drive "in a desk drawer for the next three yearsuntil that fateful summer day when he had the clearout." The hard drive itself is believed to be in a landfill nearNewport, Wales. "He even went down to the landfill site itself," The Guardian writes. "'I had Continue reading >>

What Most Bitcoin Miners Dont Understand Zapchain Magazine Medium

What Most Bitcoin Miners Dont Understand Zapchain Magazine Medium

CEO of Octane AI, Founder of Chatbots Magazine, YC Alum, Forbes 30 Under 30, product at Ustream for 4 years (sold for $130mil). Why the Little Guy Cant Mine BitcoinAnymore The quotes in this article were taken from questions answered on ZapChain . If you would like to be quoted in a future ZapChain article, sign up here and start answering questions. If you enjoy the article, let us know by clicking Recommend at the end. Simple Definition of Bitcoin Mining: People run mining software on computers. This software tracks all Bitcoin transactions and makes sure that people cant spend the same Bitcoin twice. People mining are rewarded for their resources with unreleased Bitcoins. If you were mining Bitcoin when it was first released in 2009, you could easily have mined hundreds of Bitcoins in a week just using your home computer. If you were lucky enough to do this you are likely a millionaire right now. Today, Bitcoin mining is completely different. With the rapid increase in people mining Bitcoin, and the continued improvement of Bitcoin mining hardware, Bitcoin mining has shifted from casual miners experimenting at home to full blown large scale operations funded by millions of dollars. The mining ecosystem is rapidly growing and evolving. Were beginning to see a shift in hardware infrastructures, from ASIC chips connected via USB in the home to full fledged rack mountable servers in large datacenters. - Chris Shepherd, CEO of HashRabbit (Bitcoin Mining Company) What most miners dont understand is that there is no longer room for the little guy to compete. He simply doesnt have the resources. Bitcoin mining hardware is increasing in power so quickly that in order to maintain a profitable mining operation you need to: Actively sell your current mining hardware before the Continue reading >>

The First Miners

The First Miners

I'm curious to know who, back in 2009 was mining and how many bitcoins could you mine per day with an average personal computer? I mined about 200btc with a pentium 4 pc in a couple of days. I'm curious to know who, back in 2009 was mining and how many bitcoins could you mine per day with an average personal computer? I mined about 200btc with a pentium 4 pc in a couple of days. I first heard about Bitcoin about a year ago but I didnt read into it much and forgot about it until about a month ago when I stumbled on it again. I wish I would have read more the first time around... BTC tip jar: 18EKpbrcXxbpzAZv3T58ccGcVis7W7JR9w I mined 100 BTC in a few days in late 2009 using two or three computers (the same one built both blocks) I was previously using for [email protected] I don't remember their specs, but they weren't anything special. I actually stopped because they were using significant amounts of power to generate something that didn't seem to have any purpose or value, and went back to [email protected] Quote from: blazing on August 08, 2012, 01:57:48 PM I'll be honest, it was greed. Also, part of it was having the opportunity to be part of something new, but in the end I ended up stopping, so I can't say either really convinced me all that much. Quote from: Raize on August 08, 2012, 06:37:44 PM I mined 100 BTC in a few days in late 2009 using two or three computers (the same one built both blocks) I was previously using for [email protected] I don't remember their specs, but they weren't anything special. I actually stopped because they were using significant amounts of power to generate something that didn't seem to have any purpose or value, and went back to [email protected] Quote from: blazing on August 08, 2012, 01:57:48 PM I'll be honest, it was greed. Also, part of it was having the Continue reading >>

Category:history - Bitcoin Wiki

Category:history - Bitcoin Wiki

This page is outdated. You can help improve it by providing up-to-date information. Two fantastic compilations of Bitcoin history are available at the HistoryOfBitcoin.org and igotbitcoin.com/milestones sites. Important milestones of the Bitcoin project Domain name "bitcoin.org" registered [1] . Bitcoin project registered at SourceForge.net Genesis block established at 18:15:05 GMT Bitcoin v0.1 released and announced on the cryptography mailing list First Bitcoin transaction, in block 170 - from Satoshi to Hal Finney [2] . Exchange rates published by New Liberty Standard. $1 = 1,309.03 BTC (and theymos thought NLS was overcharging [3] ) #bitcoin-dev channel registered on freenode IRC. First difficulty increase at 06:11:04 GMT laszlo first to buy pizza with Bitcoins agreeing upon paying 10,000 BTC for ~$25 worth of pizza courtesy of jercos [4] Bitcoin v0.3 release mentioned on slashdot [5] , bringing a large influx of new bitcoin users. Beginning of a 10x increase in exchange value over a 5 day period, from about $0.008/BTC to $0.08/BTC ArtForz generated his first block after establishing his personal OpenCL GPU hash farm Bug in the bitcoin code allows a bad transaction into block 74638. Users quickly adopt fixed code and the "good" block chain overtook the bad one at a block height of 74691, 53 blocks later ( Incidents#Value_overflow ). jgarzik offered 10,000 BTC (valued at ~$600-650) to puddinpop to open source their windows-based CUDA client Block 79,764 is first to be mined using split allocation of the generation reward. puddinpop released source to their windows-based CUDA client under MIT license kermit discovered a microtransactions exploit which precipitated the Bitcoin v0.3.13 release Original Bitcoin History wiki page (this page) established (ooh so meta) on Continue reading >>

What Processing Power Did You Need Back In 2009 To Mine Bitcoins?

What Processing Power Did You Need Back In 2009 To Mine Bitcoins?

This is easy to calculate based on the information we have today. Mining hardware comparison has a breakdown of how many MH/s various processors can achieve. In order to calculate your mining, all you need to do is plug in the MH/s with the network difficulty. You can find historic difficulty here: Page on Runeks - on 11/27/2009, the difficulty was 1.0 I used the calculator at: Bitcoin mining profitability calculator So, if you have an AMD Athlon 64 X2 3800 on 11/27/2009, you could mine 1730.0248 a day. If you had an Intel Core 2 Quad Q6600, you could mine 11,064 a day Since you said it was a $1,000 PC, I'm assuming it'd have something like a Celeron E330, in which case you'd get 2212.8224 BTC Since these are based on 24h calculations, you'd need to convert them to 8 hours of computing. 24 hours worth of time and a spirit of adventure in 2009 to be worth $2,000,000 or so today. Not too bad. (Note: i'm not sure if these processors even existed back then, but you get the idea. Also note that the calculations are averages over 3 months from the calculator - there's a limit of 7,200 coins mined per day at a block discovery rate of 10 minutes. ) Continue reading >>

#1 Simple Bitcoin Price History Chart (since 2009)

#1 Simple Bitcoin Price History Chart (since 2009)

Bitcoin was not traded on any exchanges in 2009. Its first recorded price was in 2010. Technically, Bitcoin was worth $0 in 2009 during its very first year of existence! Bitcoin's price never topped $1 in 2010! Its highest price for the year was just $0.39! Bitcoins price is measured against fiat currency, such as American Dollars (BTCUSD), Chinese Yuan (BTCCNY) or Euro (BTCEUR). Bitcoin therefore appears superficially similar to any symbol traded on foreign exchange markets. Unlike fiat currencies however, there is no official Bitcoin price; only various averages based on price feeds from global exchanges . Bitcoin Average and CoinDesk are two such indices reporting the average price. Its normal for Bitcoin to trade on any single exchange at a price slightly different to the average. But discrepancies aside, what factors determine Bitcoins price? The general answer to why this price? is supply and demand. Price discovery occurs at the meeting point between demand from buyers and supply of sellers. Adapting this model to Bitcoin, its clear that the majority of supply is controlled by early adopters and miners. Inspired by the rarity of gold, Bitcoin was designed to have a fixed supply of 21 million coins, over half of which have already been produced. Several early adopters were wise or fortunate enough to earn, buy or mine vast quantities of Bitcoin before it held significant value. The most famous of these is Bitcoins creator, Satoshi Nakomoto. Satoshi is thought to hold one million bitcoins or roughly 4.75% of the total supply (of 21 million). If Satoshi were to dump these coins on the market, the ensuing supply glut would collapse the price. The same holds true for any major holder. However, any rational individual seeking to maximise their returns would distribute Continue reading >>

Guy Bought 5,000 Bitcoins In 2009 For $27, Now Worth $886,000 - The Tell - Marketwatch

Guy Bought 5,000 Bitcoins In 2009 For $27, Now Worth $886,000 - The Tell - Marketwatch

Talk about a degree that gives you bang for your buck. Kristoffer Kochwas writing a thesis on encryption in 2009 when he spent about$27 to buy 5,000 bitcoins. Life went on, and he forgot about his investment until bitcoins wild price swings earlier this year resulted in a slew of articles about bitcoin. Bitcoin is a virtual currency that isn\t controlled by a central bank. Instead, bitcoins are created through a process called mining, in which a computer tries to solve a cryptographic problem. The total supply of bitcoins is capped, which has led to comparisons with assets like gold. Koch\s original $27 investment is now worth about $886,000, Koch told the Norwegian broadcaster NRK. Thats a return of 3,281,500% in four years. Koch has used one-fifth of his bitcoin stash to buy an apartment in Oslo, Norway, the Guardian reports. Continue reading >>

Experience: The Arms Race Of Bitcoin Mining Hardware

Experience: The Arms Race Of Bitcoin Mining Hardware

Home Articles Experience: The Arms Race Of Bitcoin Mining Hardware Experience: The Arms Race Of Bitcoin Mining Hardware Posted by: Jabberwocky July 10, 2014in Articles , Featured 1 Comment Personal experience from the miner point of view As some of you may already know, Bitcoin mining hardware has evolved since its beginning in early 2009. So lets hop in my time machine, Im going to introduce you to the different families of mining hardware that were used and evolved at a faster pace since mid 2013. At the beginning the CPU (Central Processing Unit) was used. Yes, the good old CPU that any computer has. Can you imagine that at that time, you could earn 100 or 200 BTC in a few days with a good old Pentium 4 or similar? They were hashing between 1 and 2 MH/s for every 50-Watts used, 0.04MH/s/watt. But keep in mind they are still worthless, no way to exchange them against anything until the end of 2009, beginning of 2010. With a block 50,000 a good old Pentium 4 earned you 0.02 (USD) a day. With the opportunity to exchange BTC to USD people obviously wanted to earn and profit more, and so the arms race began! In October 2010, the first open source GPU (Graphics Processing Unit) mining software is released, allowing the use of GPU instead of CPU will make a huge difference. Radeon 5830 and 5850 had a great success for this purpose, hashing from 250 to 300 MH/s for every 150-Watts used,2 MH/s/watt At that time, taking block 90,000 as an example, a single Radeon 5830 was earning 80 BTC, nearly 6 US$ a day. But this would not last long, one month laterat the end of December 2010 looking at a block 100,000the same GPU was earning 16BTC a day, around 1 US$ a day. So Im sure youre thinking Hey, I still want more! Ill buy 6 more faster GPU, and aRadeon 5870 to earn more. Welcome Continue reading >>

History Of Bitcoin - Wikipedia

History Of Bitcoin - Wikipedia

Number of bitcoin transactions per month (logarithmic scale) Bitcoin is a cryptocurrency , a digital asset designed to work as a medium of exchange that uses cryptography to control its creation and management, rather than relying on central authorities . [1] The presumed pseudonymous Satoshi Nakamoto integrated many existing ideas from the cypherpunk community when creating bitcoin. Prior to the release of bitcoin there were a number of digital cash technologies starting with the issuer based ecash protocols of David Chaum [2] and Stefan Brands . Adam Back developed hashcash , a proof-of-work scheme for spam control. The first proposals for distributed digital scarcity based cryptocurrencies were Wei Dai 's b-money [3] and Nick Szabo 's bit gold . [4] [5] Hal Finney developed reusable proof of work (RPOW) using hashcash as its proof of work algorithm. [6] In the bit gold proposal which proposed a collectible market based mechanism for inflation control, Nick Szabo also investigated some additional enabling aspects including a Byzantine fault-tolerant asset registry to store and transfer the chained proof-of-work solutions. [5] There has been much speculation as to the identity of Satoshi Nakamoto with suspects including Wei Dai , Hal Finney and accompanying denials. [7] [8] The possibility that Satoshi Nakamoto was a computer collective in the European financial sector has also been discussed. [9] On 18 August 2008, the domain name bitcoin.org was registered. [10] Later that year on October 31st, a link to a paper authored by Satoshi Nakamoto titled Bitcoin: A Peer-to-Peer Electronic Cash System [11] was posted to a cryptography mailing list. [10] This paper detailed methods of using a peer-to-peer network to generate what was described as "a system for electronic tra Continue reading >>

Complete Bitcoin Price History Chart + Related Events (2009 - 2018)

Complete Bitcoin Price History Chart + Related Events (2009 - 2018)

Bitcoin value: $2787.85Bitcoin value 10 days later: $3383.79 View Event #66 on Chart After years of debating about how Bitcoin should scale the controversy turned into action. The Bitcoin code split in two different directions. One direction supporting the optimization of Bitcoin blocks through Segwit , while the other direction supports bigger blocks of up to 8mb. The bigger block group called their currency Bitcoin Cash and effectively doubled the holdings of anyone who owned Bitcoin before August 1st. For example, if you have 10 Bitcoins before August 1st, you would now have 10 Bitcoins and 10 Bitcoin Cash. Bitcoin value: $726.36Bitcoin value 10 days later: $749.1 View Event #61 on Chart In a shocking turn of events Donald Trump defeats Hillary Clinton and become the 45th president of the United States. The US market drops by over 1% and the Mexican Pesohas plumbed record lows, and is now down 10% today at 20.22 peso to the dollar. Japan'sNikkei 225 plunged 5.4% while Hong Kong's Hang Seng index lost 2.2%. The Shanghai Composite index lost 0.6%.. Dow futures were down 2.1%, S&P 500 futures were 2.3% lower and Nasdaq futures lost 2.7% at around 6.30a.m. ET. European markets opened sharply lower before paring its losses.GermanysDAX index was off around 1% after opening down nearly 3%. France's CAC 40 was in positive territory by 0.4% after an earlier decline of 1.5% and Britain's FTSE 100 dropped 0.3%. Investors rushed into perceived havens, such as gold, which is up$26.90 an ounce, or 2.1%, to $1,301.40. Bitcoin has seen a sharp increase in value during this night going up 5% in just 24 hours, however later throughout the day the price stabilized on a total increase of 2.5%. Bitcoin value: $594.86Bitcoin value 10 days later: $591.36 View Event #60 on Chart Bitfinex, Continue reading >>

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