THE FAUCET

THE FAUCET HAS TRANSFERRED TO http://www.newbcoin.com

BitVegas

BitVegas
Free Bitcoins for Playing Minecraft

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Thursday, May 30, 2013

FREE WORKING BTC FAUCETS

Other free working BTC faucets that you guys can use until ours opens, these give out FREE BTC every 30 mins:

Coinurl - Shorten random links and get free BTC for clicks!

CanHasBitcoin

FaucetBTC

ElBitcoin Gratis

BTC4You

Free BTC4 All

Virtual Faucet

The Free Bitcoins

Free Bitcoins


Enjoy! You can use these every 30 minutes, don't forget to donate so we can finally open our Faucet!

Tuesday, May 7, 2013

5 FREE mBTC IN A MINECRAFT IN-GAME CASINO!

MINECRAFT IN-GAME BTC CASINO

Yeah, a server hosted, provably fair, Minecraft server with a custo mtexture pack and BTC applicable. You can bet mBTC (using the free 5 you get) or deposit. The minimum withdrawal is 5 mBTC, so after you get it, you can just withdraw and leave. Withdraws and deposits are instant so no need to wait. The games that this server has range from Blackjack to Pig Racing bets. Please give it a try by going clicking on this banner here or at the top of the main website:  



Monday, May 6, 2013

THE FAUCET IS FINALLY OPEN!

Yes, we have achieved enough donations and with the help of my friend, lordsonkit with the coding, the faucet has finally been established. You can now input your Bitcoin Address, if you don't have one visit http://www.blockchain.info to create a free bitcoin address, and recieve some Bitcoins every 24 hours. The deposits are done manually, so no need to worry about exploiting the system ;). Thank you for your continued support, hopefully with enough traffic, we will have enough visitors to update the site to a more stable and professional domain. Keep on visiting the blog for more tips and trick on Bitcoins!
If you like our work, please tip any amount of Bitcoin to show your support through out Bitcoin Donation button here:

Sunday, May 5, 2013

The Craze on Mining Bitcoin

Source: http://motherboard.vice.com/blog/a-guide-to-bitcoin-mining-why-someone-bought-a-1500-bitcoin-miner-on-ebay-for-20600



The world's first ASIC-based miner, via Avalon


With the price of bitcoins skyrocketing, mining is suddenly big business, so enticingly big that one wannabe miner was willing to pay a 1,333 percent premium to get his (or her) foot in the door of this wildly lucrative bitcoin bonanza. Ladies and gentlemen, welcome to the bitcoin gold rush.


The craziest part? This wasn’t an auction for a physical, working, ready-to-ship bitcoin mining machine from Avalon, which claims to be the first to develop turnkey, bitcoin-specific mining computers for sale. For $20,600 (bidding started at a reasonable $500), the lucky winner only received a place in line and the promise that an actual (pre-ordered) miner will be delivered sometime next month. If that sounds ridiculous, well, it’s because it quite possibly is.


But clearly there are bitcoin-savvy folks betting that paying 13 times the price of a machine will actually pay off. How did we arrive at this maniacal juncture? Was it greed? Stupidity? Or simple mathematics? For the full story, we’ll have to start from the top.


How bitcoin mining works


In order to keep a record of everything, bitcoin has a ledger known as the “block chain,” a shared database of all successful transactions. Every transaction that occurs must be broadcast to the bitcoin network and everyone connected to the bitcoin network has a copy of the block chain.



Click to enlarge: How bitcoin works, by Joshua J. Romero, Brandon Palacio & Karlssonwilker Inc.


The purpose of bitcoin miners is to verify these transactions and then add groups of transactions, called blocks, to the block chain. This process occurs roughly every 10 minutes. For every block added, the successful miner receives a certain amount of bitcoins for his troubles, plus transaction fees. The reward started out at 50 bitcoins, but it's cut in half every 4 years. Right now, you get get 25 bitcoins for every block mined.


Anyone can technically become a miner. The software is ready to download, all you have to do is contribute raw computing power, which means your main recurring costs are electricity bills. If you solve the next block, the spoils are yours. The more processing power at your disposal, the greater your mining ability.


But here’s the kicker. Built into the model is a “difficulty” metric, which is recalculated whenever 2016 blocks are added. As the speed of mining goes up (as more processing power is added to the system), the difficulty will increase proportionately to compensate in order to maintain the rate of one block every 10 minutes.



Mining difficulty increases at a predictable rate, via bitcoinX


What this means is that your ability to mine bitcoins isn’t necessarily about absolute computing power, but rather your computing power relative to other mines. Of course, in the end, that still means you’re going to want the most powerful hardware possible if you want to maximize your mining ability. But it also means that if you don’t keep pace, you’re going to be left behind. Which brings us to...


A brief history of mining hardware


Back in 2009, when Satoshi Nakamoto first birthed bitcoin, mining difficulty was relatively low, which meant that anyone could download the software and more or less start mining with only their CPU.


The next logical step was the GPU, dedicated graphics chips usually reserved for gaming. A graphics card from the likes of Nvidia or ATI offered a significant boost over Intel and AMD CPUs. For about $150, you could buy an off-the-shelf graphics card and start a fairly profitable mining business in mid-2011.



Mining profitability over time, via CoinLab


As more miners joined the party, difficulty increased, making the profit to power consumption ratio unpalatable for those used to a higher rate of return. Bitcoin's price collapse in July of 2011 only exacerbated the situation. Even if you believed in the future of bitcoin, if you spent more on your electric bill than you made from mining, you were better off just buying bitcoins.


This initiated the advent of FPGA, or field-programmable gate array, use in mining. That's a mouthful for the technical layman, but all you really need to know is that these add-on cards, which cost in the hundreds of dollars, offered comparable mining performance to GPUs while using way less power. Better energy efficiency meant higher profit margins. Eventually, any self-respecting miner was FPGA-equipped.



A mining rig hooked up with 41 Icarus FPGAs, via Xiangfu Liu


The endgame, however, was always going to be the ASIC, an application-specific integrated circuit–in other words, a chip designed from the ground up for the specific purpose of mining bitcoins. The result is a system that is not only incredibly powerful compared to anything else, it’s also exceedingly energy efficient.


ASIC also represents the theoretical limit on the hardware capabilities of mining equipment. Sure, you could keep shrinking the die-size of the chip so that it uses even less power, but even that road eventually ends. It’s simple physics: things can only get so small. Until quantum computing arrives–if it ever does–for bitcoin miners, using ASICs is the way to go.


For a while, the bitcoin ASIC was a pipe dream. Designing and manufacturing your own chip requires significant upfront investment. With bitcoin’s future still uncertain, many figured FPGAs would be the best hardware miners ever got. Then, last summer, a company called Butterfly Labsstarted taking pre-orders for fully functional ASIC systems for $1,299 and promised to ship in October. Another company, bASIC, started taking pre-orders soon after.


As with most things bitcoin in these early days, the whole ordeal was contrasted by wild enthusiasm and lingering fear, uncertainty, and doubt. The guys from bASIC ended up running with the money (although it appears they have been attempting to give partial refunds). Meanwhile, Butterfly Labs, after numerous delays, has still yet to ship anything, although it’s generally believed that they eventually will.



Avalon's ASIC chips


Only one company followed through. Avalon started taking orders in September, promising delivery sometime in February. That first batch of 300 pre-orders sold out within hours. By the end of January, Avalon shipped their first two units from China just before the new year's festivities, effectively becoming the world’s first ever company to produce an ASIC bitcoin miner. ASICminer, another major developer went online in February as well, although these units were never sold to the public (but you can buy shares in the company). A new era had begun.


Where we are today


Remember, the ability to mine bitcoins is based on relative computing power. As such, whoever got their hands on those first ASIC machines–which are roughly 50 times more powerful than the next best thing–would quite literally print money. That lucky man was Jeff Garzik, who was incidentally pushed to the front of the queue by Avalon for being a core bitcoin developer. It’s an open source project after all. (The other unit went to the Bitcoin Foundation.)


Garzik made back the cost of the $1,299 ASIC bitcoin miner in about a week. The remaining units from batch one were delivered by the end of February.


Having gained some credibility and silenced the trolls, Avalon started accepting orders for batch two, which totaled 600 units at a cost of $1,499 each. Batch two pre-orders sold out within 20 minutes. Those units are scheduled to complete shipping by the first week of April. But while miners in batch two will still do well for themselves, they’ll be doing less well than batch two over time as difficulty inevitably ramps up.


Which finally brings us back to our exuberant eBayer, the one who paid over $20,000 to cut in line and join the other batch two early birds. Is the worm really worth an $18,500 premium? Only time will tell. But if the price of bitcoin continues its meteoric rise, he too, will eventually mine his money back, sooner rather than later. Under current conditions, he'll break even in 50 days, with daily revenues of $434.12, according to BitcoinX. All things considered, not too bad. Granted, it's impossible to know how bitcoin will perform in that time.



The arrival of ASIC-miners, in graph form, via bitcoin.sipa.be


We do know however, that he'll be in for some stiff competition and with it, the reality of diminishing returns as more ASIC units flood the system. Butterfly Labs–rumored to have sold over 20,000 pre-orders as of a month ago–is expected to start shipping in May or June. Still chugging along, Avalon revealed it would start taking orders for batch three in the next few days.


This time around, one of the 600 Avalon miners will cost ~75 BTC (the batch three price of the systems will be calculated so that break even point will be 30 days, once the difficulty resets), which comes out to over $5000 with bitcoins trading at ~$70.


If that seems pricey–it is nearly five times the price of an identical unit from batch two–it’s still only a fraction of the market value. And really, there are few other businesses whose start-up costs are designed to break even in just a month. Such is the insanity of bitcoin mania.

Saturday, May 4, 2013

Can the Bitcoin Craze Outlast Looming Hurdles?

News from Fox News suggests that Bitcoin could become the new default currency. Find out more by reading this.

Source: http://www.foxbusiness.com/technology/2013/05/06/can-bitcoin-craze-outlast-looming-hurdles/

Riding the Cyprus bailout wave, Bitcoin catapulted into the financial spotlight this year, but the turbulent virtual currency still faces daunting regulatory, security and infrastructure challenges.

As the debate over the future of this decentralized digital currency rages on, scary meltdowns, alarming cyber attacks and lingering skepticism have clouded its prospects.

Still, it’s clear that Bitcoin has captivated the minds of libertarians, economists and investors alike.

“We continue to believe that this phenomenon is the most provocative economic experiment since the invention of the euro and well worth watching,” Nicholas Colas, chief market strategist at ConvergEx, wrote in a recent note.

Founded in 2009 as an open-source software code, Bitcoin has exploded beyond $1 billion in value this year. Despite its young age, the cyber currency has benefited from growing doubt about the future of traditional currencies amid ultra-aggressive monetary policy and about the safety of bank deposits following the controversial “bail in” of depositors in Cyprus.

'White-Knuckle Ride'

Bitcoin users can deposit local currency and then use those funds to buy Bitcoins at a rate that fluctuates with the market.

However, unlike traditional fiat currencies that are controlled by central bankers, Bitcoin is highly decentralized as its circulation expands at a predictable and limited rate. It also markets itself as untraceable, although that feature is coming under regulatory pressure amid concerns it could be used for nefarious purposes such as to finance terrorism.

Bitcoin’s value has skyrocketed, but it has also experienced more volatility than any reliable currency should ever experience.

Since trading at just $20 at the start of the year, Bitcoin rode a wave of enthusiasm beyond $260. However, a high-profile meltdown last month caused by heavy trading and a cyber attack wiped out nearly 80% of the currency’s value, prompting a 12-hour shutdown on one major exchange.

“Investing in Bitcoin has been a white-knuckle ride so far, and nothing in its near future points to a different trajectory,” Colas said.

Could the U.S. Ban Bitcoin?

The biggest obstacle facing Bitcoin in the medium term appears to be on the legal front.

So far the U.S. has said little about Bitcoin, with only the Treasury Department indicating rules that force money-service businesses to track transactions do indeed apply to virtual currencies.



"Bitcoin is to money what Amazon is to retail or Netflix is to video content."

- Nicholas Colas of ConvergEx



Future regulation could severely restrict or even ban the use of Bitcoin in the U.S.

“National governments do not have a history of condoning unofficial currencies,” said Darrell Duffie, a finance professor at Stanford University. “If it were ever to become popular enough to begin acting like a serious alternative currency, I believe the authorities would step in.”

Duffie said Bitcoin could potentially fall under the Stamp Payments Act of 1862, which prohibits issuing notes for less than $1 that are intended to circulate as money.

“Previous case law has suggested that courts are willing to tolerate private currency so long as they do not attempt to replace the official currency. Bitcoin supporters envision Bitcoin as a global digital currency,” said Duffie.

Some feared Treasury was going to move to wipe out Bitcoin earlier this year.

“I did think there was a chance the U.S. would ban it. They chose the wiser choice: to regulate it,” said Daniel Friedberg, a financial-services attorney at Seattle law firm Graham & Dunn who has a Bitcoin client base.

Money-Laundering Concerns

Peter Dugas, director of government affairs at the law firm Clark Hill, said Bitcoin will continue to reside in a legal “gray area” until the U.S. issues further guidance.

As U.S. regulators remain bogged down with the implementation of the Dodd-Frank financial overhaul, it remains unclear whether the government will choose to regulate Bitcoin as a currency, a commodity or perhaps something in between.

While Bitcoin’s $1 billion outstanding is just a drop in the $4 trillion global currency market, Dugas said the “biggest concern” is whether the virtual currency is exploited for terrorism or money-laundering purposes.

“I can see [Bitcoin's] desire to remain faceless, but the realities of the global financial system are not such. There are entities out there that are going to use this for nefarious reasons,” said Dugas. “In my opinion, it would be smart for them to engage on that process early on to educate the regulators.”

Colas urged Bitcoin to convince global charities to use the virtual currency for donations and money transfers, giving regulators a reason to think twice about excessive regulation or a ban.

“That move alone would begin to remove the ‘Cokehead currency’ imprimatur which Bitcoin still struggles to overcome,” Colas said.

Will 'Smart Money' Now Embrace Bitcoin?

Some of Bitcoin’s security and legitimacy problems could be eased by future investment from venture-capital firms. An influx of cash could allow exchanges like Mt. Gox to upgrade their systems, limiting the number of scary meltdowns and cyber attacks.

VC cash could also be used to help finance service offerings for both individuals and businesses.

In recent weeks, Bitcoin startups like Coinsetter, which is devising a foreign exchange trading platform for the currency, have raised significant amounts of money from VC firms.

BitInstant, an online service that lets users convert dollars into Bitcoins, had been shunned by traditional investors in 2011, but is now in talks about a round of financing that would value the company in the “tens of millions,” according to tech blog Mashable.

Digital wallet startup Coinbase has also raised $600,000 from a number of VC firms, Mashable reported.

“Bitcoin is to money what Amazon (AMZN) is to retail or Netflix (NFLX) is to video content -- a much more efficient way to meet the needs of millions of people around the world," Colas said.

Competition in the Virtual Currency Space

It’s also possible that Bitcoin will be passed over by a new virtual currency just as previously popular currencies e-gold and Liberty dollar were.

One new virtual currency gaining attention is Ripple, which was created by OpenCoin and landed seed money from VC giant Andreessen Horowitz.

“I think virtual currency is here to stay. But I don’t know which of these virtual currencies will ultimately be the winner or if it will be Bitcoin,” said Friedberg.

Even some supporters of alternative currencies are skeptical about Bitcoin’s ability to thrive as a currency, especially given its lack of transparency.

“People are saying, 'We can’t trust the banks. Let’s go to the Internet.' In principle that’s a great idea, but Bitcoin may not be the best place to put your money,” said Jacqui Dunne, co-author of Rethinking Money: How New Currencies Turn Scarcity Into Prosperity.

Dunne believes Bitcoin, given its wild price swings, is more of a tool for speculation than a currency. “The trouble with Bitcoin is nobody knows what’s going on underneath the hood,” she said.

Given the looming legal challenges and persistent suspicion, it seems that the next few quarters will be critical in determining the future of Bitcoin.

“It could all still end in tears, either by regulation or mismanagement. But Bitcoin isn’t dead just yet, and it remains one of the most potentially disruptive forces in modern finance,” Colas said.

How to start Mining Bitcoins

One of the biggest problems I ran into when I was looking to start mining Bitcoin for investment and profit was most of the sites were written for the advanced user. I am not a professional coder, I have no experience with Ubuntu, Linux and minimal experience with Mac. So, this is for the individual or group that wants to get started the easy way.


First thing you need to do is get a “Bitcoin Wallet”. Because Bitcoin is an internet based currency, you need a place to keep your Bitcoins. Got to http://www.bitcoin.org and download the Bitcoin client for your Operating System. Install it the client will begin to download the blockchain. Downloading the blockchain can take a long time and will be over 6GB of data. If you have data caps, I would recommend ordering a copy of the blockchain on DVD to keep from going over as it is growing exponentially. Click toorder the bitcoin blockchain by mail. Once the client is up to date, click “New” to get your wallet address. It will be a long sequence of letters and numbers. One of most important things you can do is make sure you have a copy of the wallet.dat file on a thumb drive and print a copy out and keep it in a safe location. You can view a tutorial on how to create a secure wallet by clicking the link on the top of the page. The reason is that if you computer crashes and you do not have a copy of your wallet.dat file, you will lose all of your Bitcoins. They won’t go to someone else, they will disappear forever. It is like burning cash.


Now that you have a wallet and the client, you are probably roaring to go, but if you actually want to make Bitcoin (money), you probably need to join a pool. A pool is a group that combines their computing power to make more Bitcoins. The reason you shouldn’t go it alone is that Bitcoins are awarded in blocks, usually 50 at a time, and unless you get extremely lucky, you will not be getting any of those coins. In a pool, you are given smaller and easier algorithms to solve and all of your combined work will make you more likely to solve the bigger algorithm and earn Bitcoins that are spread out throughout the pool based on your contribution. Basically, you will make a more consistent amount of Bitcoins and will be more likely to receive a good return on your investment.


The pool that I’m involved in is called Slush’s Pool so I will be giving instructions on how to join there but feel free to look at other options. Follow the link to go to their site and click the “Sign up here” link at the top of their site and follow their step by step instructions. After you have your account set up, you will need to add a “Worker”. Basically, for every miner that you have running, you will need to have a worker ID so the pool can keep track of your contributions.


Most of the mining programs out there are pretty complicated to setup and will frustrate your average user. Recently a great program has come out to get the most basic of users started. The program is called GUIMiner. Click the link and download the program (Be careful, some of the ads are set up to look like the file download). Install and run the program and add in your information from Slush’s Pool. Remember that the user name is actually the worker name. The worker name will be your user name, dot, worker ID (username.worker ID) and the password from that worker ID.


Now that you are set up you can start mining. If you feel like you want to make more Bitcoins, you might want to invest in mining hardware.


Source: http://startbitcoin.com/