Free martingale gambling thinks that a martingale it’s a fast and easy way to make money. What’s that?
Simply speaking, it’s doubling the bet after a loss. It looks so easy
to win at this game, but, statistically, it’s not impossible to lose
ten times in a row, and the loss will become huge.
Anyways, if
you want to try, just created a free martingale. You get around 300 satoshi for free every hour, you can try to multiply them with
the free automatic martingale game.
It’s interesting to try it, because you can see how easily you can make money, but also you can see that you can lose the whole capital in a few seconds. Amazing.

No more cloud mining for me

For some reason, cloud mining is enticing me. If you remember, when bitcoin started to be popular, I rented some gigahash on eBay.
I invested 5 euro and I got only 2 back, because at the moment to mine, the most profitable sha256 coin were terracoins… but their value crashed just a few hours before cashing them…
Now, with the network difficulty that has increased exponentially (every hour, in the whole world only 150 bitcoins can be mined, so, the more are mining it, more hashpower is needed=, those gigahashes would be totally useless…
Also is enticing, but with those prices it’s impossible to get a return on investment, it has been designed for day trading. Buy low and sell high, being careful to the network difficulty: every two weeks it drastically increases, making the value of a GH/s plummet.
On March I found an offer on bitcointalk: someone from Belgium has 15 antminer S1 (worth $9000, with 2700 GH/s power) and is selling shares, distributing profits to shareholders, with an 8% fee.
I calculated the ROI, and, supposing a 20% difficulty increase, I could have made an easy 10% in 6 months.
Not bad, I told myself, and I sent 0.14 bitcoins. Unfortunately, some forum trolls made those guy realize that he could disappear with the shareholders money and… even if he had honest intentions in the beginning, as he registered with his real name, phone number and address, after the first payment he disappeared…
So… I invested 0.14 bitcoins and I only got 0.02… anyways, I saw that the difficulty has increased much more than a 20% that I supposed in my calculations, if I was lucky, I would have got just half of them!
Then, watching on Whatmine, I saw that it was the right time to mine Peercoins. I rented some gigahash for 48 hours on MiningRigRentals, but I didn’t calculated correctly the difficulty that I set up for the worker: it was too high and the first 12 hours of rent were wasted. And at that point mining Peercoin wasn’t worth…
And then the last one, Cryptsy and their mining contracts. Crazy prices, so for the first batch I give up. But, for who invested in the first batch it was an awesome deal! Until all shares were sold, the price would have been fixed, and slowly increased over time, to artificially create demand.
Buying immediately, the price was 0.018 per share, after 24 hours 0.0185 and after 48 hours 0.019. Who bought them at 0.018, after just three days could have sold them for 0.0225!!!
And then Cryptsy did a second batch, I blindly bought a share! But, I didn’t realize that this time the shares were much more and the minimum order was ten times the previous batch! A disaster! Too much offer and small demand made the price crumble to 0.11! Damn!
I tried to hold the share for a few days, the price rose a little, but, since the difficulty readjustment was near, I dumped it, at loss. A few days later, without a valid reason, the price bumps to a point that would have sent me to breakeven.

Be careful to bitcoin (or similar coins) toolbars!

It was only a matter of time before it happened, because no one checks on Google Chrome store what an extension actually does (because Google says, if an extension has a bad behaviour, users notice it by themselves and give bad reviews… sure… right…). There are many toolbars or extensions for Google Chrome that show the current price of your favorite cryptocurrency: Dogecoins, bitcoin, NXT, and many others.
The problem is that, silently, they spy on the user’s browsing, replacing payment addresse.
For example, on Cryptsy, the address is changed for deposits: in this way you deposit on the wrong account, giving your coins to the fraudster. On bter instead the withdrawal address was changed within a few milliseconds after clicking on OK.
Unfortunately, it is difficult to recognize this kind of scams, it is best to install only the extensions that can be trusted.
On Mozilla Firefox, each extension is controlled by volunteers, but on Chrome nobody controls what is published, that’s the main problem.

Mt.Gox doesn’t pay, bitcoin tanks

Have you ever searched how much is a bitcoin worth? If you did it, probably you would have noticed that Mt. Gox valutation is much higher than other exchanges, in average up to 20% more. This not only recently, but it was always like this. In fact, Mt. Gox only did up to 25 bank transfers daily, meaning that if you asked today, you would have got the money after six months!
Today they totally blocked the cash withdrawals, and bitcoins withdrawals are also having some problems.
So, panic, and the bitcoin value is tanking.
Will it be back? Well, on bitcoin you can see the whole orderbook, and you can see that there are “buy” orders for thousands and thousands of dollars, in order to get a “discounted” bitcoin. After all there are only 12,3 millionsavailable right now, and no more than 23 millions can be minted. It’s a rare asset, and it’s in the human nature to hoard it as much as possible

A nice explanation on how cryptocurrency works

I stumbled on the Franko website, a bitcoin clone cryptocurrency (actually, it’s a litecoin clone).
If you read the introduction, the concept is explained very well:
  • There are 11,235,813 Frankos
  • Everyday 720 new coins are released
  • The mathematical equivalent to find a needle in an haystack
  • More people searching for the needle = the bigger the haystack has to be = the algorithm is more difficult to solve
If you get at the end of the introduction you can get 0.001 Franko for free (it’s less than a cent of a dollar)

Scared me!

I was giving a last glance to Twitter just before going to sleep, when I read this:
OHMYGOD! All bitcoin private keys leaked??? How that could happen??
I got goosebumps! If a private key of a wallet is leaked, it means everyone can take possess of the coins inside! And, if this is true, it means now the bitcoin value is ZERO! With my heart beating very fast, I check the price on Mtgox… it’s still around $1000… weird? I copy a private key and I try to import that wallet on mine: ERROR!
I feel relieved! It’s just a joke!
But… maybe… someone could actually believe it… and the value of a bitcoin could fall!

Ps: I rented a 6 GH/s ASIC miner for 24 hour, soon I’ll write results!

Bitcoin Mania

After I wrote that article about bitcoins, I got the mania!

I opened an account using the Android app: since it’s decentralized, you can do it by yourself without giving any personal data to anyone.
I then earned those few cents on Land of Bitcoin, a portal where, clicking like a maniac on suggested sites, you can earn “satoshis”, the minimum bitcoin amount.
I made something like… 6 cents, without any doubt I would have done more money in less time if I went in downtown begging tourists for money, but it was still useful to understand how the system is working.
For example, the minimum transaction on the bitcoin network is 5540 satoshi, and, since everything is decentralized, you have to pay a fee with you transfer coins. Those extra bitcoins will go to pay the “miners” that made the calculations to make it. You can even decide to apply an extra fee to transfer the balance more quickly.
Another way that it’s used to quickly transfer bitcoins in small quantities and without commission it’s a Coinbase account. In this case it works like PayPal, the bitcoins aren’t actually transfered, but are kept “internal” to the website.

I kick myself for bitcoins

Some years ago, when the bitcoin value was around a dollar, I told myself “what about if I buy something like thirty dollars?”.
Then, making a digital wallet looked complicated, and it seemed ridiculous to pay for having some potentially useless “bits”, so I didn’t jump on the wagon.
Now a bitcoin is worth around $700, and my $30 would have become $21000…
I always considered it as a speculatory bubble, as I wrote last april, with frequent “robberies” and hacker attacks that influenced its value, but now I regret to not being an “early adopter”, the price is too high now, and it’s impossible to generate them by yourself without an expensive custom processor (ASIC).
But, maybe, if I had bought them, I would have just sold them when their price rose, just after a while, or maybe I would have been robbed in one of those many attacks to the virtual bitcoin “banks”. (A real bank is insured and your money isn’t touched, a bitcoin bank… well… say farewell to your possessions…)