FinCEN Issues Bitcoin-Friendly Ruling for Miners

Milly Bitcoin’s Mining Rig

The US Department of Treasury, Financial Crimes Enforcement Network (FinCEN) has issues ruling that clears up an issue for Bitcoin mining.  The issue involves whether someone who mines Bitcoins for themselves can trade them for cash at an exchange or spend them directly without being classified as a Money Services Business (MSB) […]

Bitcoin Blockchain – The Longest Chain Wins

The Bitcoin “Blockchain” is the database of Bitcoin transactions.  It is basically a ledger and all Bitcoin balances can be obtained from it.  A section is added to the database about every 10 minutes on average.  Each block on the end depends on all the blocks before it so you cannot just insert a new […]

Alternate Uses of the Blockchain Using Merged Mining

There are currently several alternate uses of the Bitcoin blockchain.  these proposals include using the Blockchain as a notary service (for instance, proof of existence splits a hash into 2 pieces and creates unspendable output.  Bitcoin Time Stamp does something similar but transforms the hash into valid transactions).   Other proposals such as micropayments and “colored […]

FinCEN Ruling Requested for Bitcoin Mining

Atlantic City Bitcoin has requested an administrative ruling for Bitcoin mining.  The US Treasury, Financial Crimes Enforcement Network (FinCEN) issued guidance on virtual currencies a few months ago.  FinCEN also recently seized bank accounts of a company owned by Mt. Gox, the largest Bitcoin exchange.

Previously FinCEN responded to e-mail questions with a description of […]

Bitcoin Mining Profitability – An Example

There is quite a bit of hype about Bitcoin mining and the profitability.  This post will track the profitability of ordering Avalon ASICs Bitcoin Miners.  Keep in mind that the situation changes rapidly and ordering a Bitcoin miner has generally involved making a preorder and waiting months for delivery.  Developing new hardware can de difficult […]

What Problem is Solved by Bitcoin Miners?

By Milly Bitcoin – May 16, 2013

One of the most common questions about Bitcoin mining.  What are they doing?  What problem are they trying to solve?  Can it be solved with pen and paper?  Are they wasting resources?  Are they using the computer power to hack something?

The problem being solved involves cryptography.  To […]