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Sculpin Enterprises
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Hi folks,
I ran across a very interesting article on the explosive growth of bitcoin mining operations in Wenatchee and other basin areas ["This is what happens when bitcoin miners take over your town"]. Like the big server farms for Microsoft and Amazon, bitcoin miners are attracted by the cheap costs of hydopower in the basin. According to the article, it has created a wild-west rush of ever-larger bitcoin farms (and some wildcat smaller scale operations) that are consuming the surplus hydropower that the basin previously exported to California. Interesting read. [Though in the first VERY LONG sentence, the author falls for the trite, lazy description of East Wenatchee as "this sleepy rural community"]
Steve
 

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Smells like low tide.
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I read that yesterday. I check Politico regularly for interesting articles like that one.
I didn't realize that there is such a bubble growing. It appears that Bitcoin mining sucks up huge amounts of electricity, and is, or soon will be, eating up all the extra juice that the BPA produces.:confused:
 

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I’m a bitcoin dinosaur. Just don’t get it. There’s a difference between perceived value and intrinsic value, and I don’t see the intrinsic value in bitcoin. I do see a Big MegaBubble. Really interesting article though.
 

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whether legitimate or not, the huge power usage by investors is cause for concern.
personally I think the whole thing will collapse some day for many possible reasons. let those who are interested go for it, but let's not have government bailouts to cover their ass when it all fails.
 

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Wenatchee has one of the worlds biggest mine sites.

Its a novelty that will fade away.....it may take years, but it will go the way of the beanie babies.
 

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Its mostly a ponzi scheme, very very good for the virtual currency creators, and mostly bad and highly speculative for everyone else. Well over 90% of the "profit" (value) of these virtual currencies is held by a very small group of people, usually the creators and a select group of "in crowd" people. They profit and everyone else gets screwed.

Plus its a massive massive waste of energy to boot. Higher electricity prices and more pollution result from these virtual currency mining operations. What a waste.
 

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whether legitimate or not, the huge power usage by investors is cause for concern.
personally I think the whole thing will collapse some day for many possible reasons. let those who are interested go for it, but let's not have government bailouts to cover their ass when it all fails.
pretty sure government bailouts for "failed" crpytocurrency is not something on the table.

as far as tall guys comment, i dont think he really "gets it". i see it all the time. People dont understand it (or take the time to learn about what it actually is and how it works) and then dismiss it or call it something its not.

weather or not its a waste of energy is debatable. the people making more money then the power costs would prob say its not a waste. there are a lot more systems out there then the most famous bitcoin as well, and many of them are steering away from a model that requires large power consumption.
 

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I live in Wenatchee and know folks who are paid by people out of the area to house "mining operations." I believe there was just some sort of local law passed preventing that practice until officials can get a better handle on it.
 

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No, I definitely don't get it, at all.. but I wouldn't assume that I haven't done my homework around crypto currencies or don't "understand what it is" at a pretty damn high level. I would consider myself very well informed around these currencies, and had lots of discussions about them with some pretty serious people who play with large amounts for a living.

The conclusion of all this work: yep, they are mostly bullshit and pretty darn close to a ponzi scheme. Some probably of getting lucky and making some money, and a much higher probability of getting screwed amd losing it all to the first movers who are highly likely to be playing pump and dump games. Are you feeling lucky? Not really a financial strategy I think...
 

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And actually, the basics of crypto currency are so easy to understand. Its just like poker: look around the table and figure out who the fish is... if you don't know, then you are the fish.

So look around the crypto world and identify who owns the 8, 9, and 10 figure positions and how they got them. If thats not you, well then, you are probably the fish.
 

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Retired Forester...now fishing instead of working
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guys, bitcoins (and other crypto currency) are not a ponzi scheme, even in the slightest sense...... if you dont care for it, thats great, no1 forces you to use it.

but the idea that its just some imaginary scam is totally out of touch with the reality of the situation.
No...it is technically not a Ponzi scheme.

However, people make fun of "fiat" currency like the Federal Reserve notes in your wallet. Nothing backing it except "the full faith and credit of the United States".

Bitcoin is a "fiat" currency without any government backing!! Why is that better than having a government backing the currency?? Does anybody really know WHO is running Bitcoin??

Bitcoin is a "fiat" currency without a government behind it. IF you don't like fiat monetary system...buy gold or silver. In the end, it is also a "fiat" currency but at least that one has thousands of years of humans accepting it as money!

Bitcoin will end badly......and most folks will not even have a tulip bulb to show for it.
 

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I have 250 dollars in small crypto coins just for fun. I have discovered it's a joke of insider trading and pump and dump deals as well as robot transactions.

Its like playing penny slots. You win a little here and there but lose overall.
 

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And actually, the basics of crypto currency are so easy to understand. Its just like poker: look around the table and figure out who the fish is... if you don't know, then you are the fish.

So look around the crypto world and identify who owns the 8, 9, and 10 figure positions and how they got them. If thats not you, well then, you are probably the fish.
Since that is identical to the "real" economy and currency, I fail to see the difference.

Edit: There is one difference--people think they understand the "real" economy.
 

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It's not a currency, but rather a speculative scheme to separate fools from their money. It's too volatile to function as currency. Completely ineffective in that respect.

As a speculative financial instrument no reputable custodians will touch it...it's not possible to determine its actual value. Most of the dopes touting bitcoin have no idea what a custodian actually does.

Cryptocurrencies are a fad...the darling of doofuses...who will wander off to the next 'get rich' scheme once this one falls flat....their financial memories operating much like gamblers...conveniently forgetting their past losses....and moving on to the next 'big score'.

Yes...please trot out your bullshit stories about how much you've made off bitcoin.
 

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pretty sure government bailouts for "failed" crpytocurrency is not something on the table.

as far as tall guys comment, i dont think he really "gets it". i see it all the time. People dont understand it (or take the time to learn about what it actually is and how it works) and then dismiss it or call it something its not.

weather or not its a waste of energy is debatable. the people making more money then the power costs would prob say its not a waste. there are a lot more systems out there then the most famous bitcoin as well, and many of them are steering away from a model that requires large power consumption.
Is there a short version of what cryptocurrencies are and about "mining"?

I read the article.
while I could probably paraphrase back what it said about blocks of transactions, and guessing codes, and mining, and that it gets harder as effort increases, I'm not sure I really get it.

I don't relate to it as a "currency".

Once you have it, where do you spend it?

I suppose other currencies have their limitations, you can spend Canadian dollars in Canada, but probably need to convert them to another currency if you are not in Canada.

jay
 
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