1) Bitcoin's recent dramatic increase in value. (LiteCoin's value is heavily correlated to Bitcoin's.)
2) The relatively low difficulty level for LiteCoin mining right now.
3) Spot instance pricing for the EC2 GPU (g2.2xlarge) instances.
4) LiteCoin can be mined using both GPUs and CPUs (although GPUs are dramatically better, another ~35 khashes/sec from the CPUs is still nice).
Interestingly, the previous average historical spot price for these instances was ~$0.075/hour. The spot pricing has now jumped to $0.10-$0.12, depending on region.
As an added bonus, you may be able to get $100 of AWS credit at http://aws.amazon.com/big-data/powerof60/ which would give you 2-3 free days of mining.
No, actually, Litecoin's value is very different from that of Bitcoin and in the last week or two it skyrocketed from being 0.015/BTC to 0.05/BTC and back down to 0.04/BTC or so.
As a result of your post, in just 2-3 hours, the spot price on AWS went to $0.20 per instance.
An interesting economic effect of this - prior to your article, the mining profits were flowing to the miners who figured this out on AWS. After your article, the profits are now flowing to the reserved instance owners instead. Bastard.
If I were doing this, I'd sell the coins as soon as I got them. Even moreso than Bitcoin, with Litecoin the value is unstable and subject to crash at any moment.
seems like price has increased to 0.65(?!) per hour. That doesn't sound profitable.
edit: never mind, didn't notice this was about spot instances.
Seriously, with all the hype, I got suckered into buying bitcoin/litecoin just to realize that I can't compete against Chinese miners.
I guess I could buy coins and sit on them but there is no fun in doing so. Arbitrage is practically impossible because of the lag time to pull hard cash from the exchanges.
in life, studying code is what has netted me the most cash that i feel proud of earning
even then i hope you're doin it for fun not investment. until it stabilizes its just kindof a crapshoot. i have long decided that id try it if its stable and succeeding as a currency but not as an investment since the economics are absurd. its been good for those who made a buck off it but its a game and it may have many negative implications. many have taken losses on it already during crashes (or buying mining equipment -- at least EC2 is more like renting, heh). i guess it's buyer beware but i'm not totally convinced that the entire concept doesn't amount to a scam, which is why i get a little fiesty about it.
if people decide its a scheme and no one wants to buy, the only winners will be those who recognized the potential of a pump-and-dump scheme and have been cashing out bits and pieces all along
Just keep the bitcoins you bought and thank HN in 10 years for making you rich.
Btw Bitcoin is also very interesting from a technical point of view.
If the NSA is "too political" for HN, then Bitcoin is "too get rich quick without working" for HN.
I think it's useful as a method of exchanging money where the official options are terrible, or for certain forms of online payments.
It's value as a currency store is completely unknown.
Isn't it worth looking at creative ways to go around this 10 instances limit?
I think that's a better idea than buying Amazon instances at fluctuating prices, but then who knows! I also thought it was kind of fishy when BFL e-mailed me just prior to Black Friday to let me know that they were totally caught up (shipping literally months of orders worth of products in the last 24 hours?) and they had stock on the shelves, at 25% discounted prices.
Fishy. After waiting 8 months for my first order to ship, yeah! But at least I'm only spending a fixed amount.
Here's a tail of the log:
[2013-11-29 08:15:37] Stratum detected new block
[2013-11-29 08:15:37] thread 0: 83388 hashes, 0.73 khash/s
[2013-11-29 08:16:32] thread 0: 44064 hashes, 0.79 khash/s
[2013-11-29 08:17:55] thread 0: 47700 hashes, 0.58 khash/s
[2013-11-29 08:18:14] thread 0: 34596 hashes, 1.79 khash/s
[2013-11-29 08:19:38] Stratum detected new block
[2013-11-29 08:19:38] thread 0: 65016 hashes, 0.78 khash/s
[2013-11-29 08:20:38] Stratum detected new block
[2013-11-29 08:20:38] thread 0: 26352 hashes, 0.44 khash/s
[2013-11-29 08:20:50] thread 0: 26364 hashes, 2.24 khash/s
[2013-11-29 08:23:40] thread 0: 134484 hashes, 0.79 khash/s
[2013-11-29 08:23:51] thread 0: 47280 hashes, 4.48 khash/s
Is this still profitable? I'll pay 20 bucks to someone who can set this up for me and record it.
> Currently litecoins are only used as a ponzi scheme
What? I'm not really a fan of Litecoin but you can't just make false claims.