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Setting up to use Bitcoins | Mao Lal

Mao Lal is from Berlin, Germany and he is a big investor in Bitcoins. Mao Lal always thinks about being successful in life.<br>

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Setting up to use Bitcoins | Mao Lal

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  1. Setting up to use Bitcoins Mao Lal

  2. What is Bitcoin? • An open source P2P digital currency • Bitcoin is a digital currency, a protocol, and a software that enables • Instant peer-to-peer transactions; Worldwide payments • Irreversible by design; Almost no processing fee • Relies on cryptography and p2p network – no central authority • 21 million Bitcoins issued over 100+ years • 11 million issued to date, worth > $1 bn, 10%+ changing hands monthly

  3. Setting up to use Bitcoins • Step 1 – get a Bitcoin Wallet • Step 2 – create your Bitcoin Address • Step 3 –Set up a Bitcoin Miner • Step 4 – join a mining pool • Step 5 – Give up and buy some coins, 
 or look to Alt Coins ;) • Step 6 – Don’t just hoard the coins, use them in commerce or at least sell them to mitigate price risk

  4. Bitcoin Wallet • Head to http://bitcoin.org/en/choose-your-wallet • Download Bitcoin-Qt • Use a software wallet not an online one! • Encrypt with a strong password – Don’t Lose !! • Make several backups on offline media • Lots of space and time – 9 gigs and growing • Has built in mining capability

  5. Bitcoin Wallet

  6. Bitcoin Address • Using your Wallet software, create a Bitcoin Address • You can create additional addresses as often as you need • Usually looks like this: • 1NJhki2Nhtd191tHkVuBoYiEBuKHemh5MZ • Or you can be less anonymous, like this: • 1JonDaywo5MmiBdvtacKw39EB53VtpqsUe

  7. Bitcoin Address – Anonymous?

  8. Mining • Note – most Bitcoin users don’t mine. It is a competitive and fast moving business • Initially – CPU in your PC • Rapidly moved to AMD GPUs for 50-100x gain • 600 mh/s, 300w power • Development of FPGA devices • 800 mh/s, 60w, power costs becoming important • Development of ASIC – 100x increase • 60+ gh/s, 400w

  9. Mining Software • Best option is currently ‘cgminer’ (or GUI Miner) • http://ck.kolivas.org/apps/cgminer/

  10. Mining Pool • Solo mining with Bitcoin is now a non starter, • Join one of the following Pools: • Slush - https://mining.bitcoin.cz/ • BTC Guild - https://www.btcguild.com

  11. Mining Equipment • Started with the nice idea of a ‘gaming rig’ that would pay for itself; something like:

  12. Mining Equipment • But I was a year late and a Dollar short – This was the average rig by the time I started

  13. Mining Equipment • BFL – FPGA to the rescue • $500 to buy • $10 per day income • 60 watts • 832 mh/s • 50-25 Coin payout drop ☹

  14. Alt Coins • Litecoins with a Gaming Rig • 3 x 7950 GPU • 1000 watts • Very hot • $2-3 per day ☹

  15. USB - ASIC • The same power as a high end graphics card • Same price • But 5 watts vs 300+ • $1 per day • No payback • But no heat!

  16. AVALON - ASIC • ASIC is here • 66 gh/s • 750 watts • $1500 • 10 day ROI • Now £100 pd

  17. The Beast 3 x 80 gh/s ● 35 degrees + ● 3 kw ● Equiv to 250 GPUs ●

  18. Mining Difficulty – SkyNet ??? • +20% per 12 days, 225 TH/s or c 1m GPUs

  19. Mining Conclusions • Too late to get into Bitcoin mining due to: • Difficulty rising 1.5% per day • ASIC miner rigs the only viable option • 3 month delays to get an ASIC miner • Other options for mining: • CPU – Try PrimeCoin • GPUs - Litecoin – the Silver to Bitcoin’s gold

  20. Trading • B$ made the news due to extreme price rises and crashes • Due to day traders getting interested

  21. Trading • Lots of online ‘Bureau De Change’ to swap $/£ to B$ • MtGox.com, Cryptsy.com, BTC-e.com • Slow, KYC, fees, but works

  22. Volatile ? • Compared to ? • Gold has dropped c 25% in 2 months!

  23. Buying Bitcoins • New provider just arrived on the market: • Bittylicious.com • Swaps GBP to B$ in real time for 1% fee • Works from Jersey

  24. Thank You

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