Topic: Why so much bitcoin popularity in Russia? (Read 6632 times)

Where are they spending these bitcoin I theirs?

   +1

Is clear you do not spend time in Russia, my friend. 

Networking is all about the ability to present yourself well, find valuable contacts and share experiences.
I think in Russia they are the best of the best.
Networking is fun 

I would think a lot has to do with the volitility of the currency making bitcoin a good value to use and an opportunity for profit

In my country, you do not mine bitcoins...bitcoins mine YOU!

I didn't want to resort to this but since nobody believes me I am now going to link to a popular script kiddie forum. Bear in mind this place is full of kids, by the time stuff reaches this forum it has been going on for a LOT longer in the more professional (often russian) sites which I am not going to link to here.

http://www.hackforums.net/showthread.php?tid=2746015 - xyz bitcoin miner $9.99
http://www.hackforums.net/showthread.php?tid=2660054 - T-74 mining worm source $15/month $25/3 months $40/lifetime
http://www.hackforums.net/showthread.php?tid=2419991 - Botnet mining guide $6
http://www.hackforums.net/showthread.php?tid=2716838 - BTC mining bins $10
http://www.hackforums.net/showthread.php?tid=1454836 - Botminer $25
http://www.hackforums.net/showthread.php?tid=2715393 - FUD mining bins $5
http://www.hackforums.net/showthread.php?tid=2704501 - FUD bins $8/1BTC
http://www.hackforums.net/showthread.php?tid=2700900 - Miner builder $50
http://www.hackforums.net/showthread.php?tid=2847671 - FUD (fully undetected by antivirus) miner $10/1BTC
http://www.hackforums.net/showthread.php?tid=2765877 - Cheap FUD mining bins $2 each

There is a lot more but I can't be bothered to find it all again.

There is a bigger industry for bitcoin malware than the amount of bitcoin that is used for legitimate purposes. Some of these are not small operations, there are full blown software companies that sell malware builders, they existed before bitcoin but the more interest there is in bitcoin the more incentive they have to release bitcoin related products.

Stolen electricity, university, and also computer centers with video game machines.  Run miner and pay for computer time and more.

Even electricity in Russia not charged at cost of production and transport.  Government limits price to make people happy about government.

Plus yes, free.

Rhetorically speaking, for example, why is there so much gun popularity in America?  

It does seem cultural in both cases; our people in current generations remember their or their elders' life savings being zeroed out overnight in the '90's...

Russia produces a great number of high-grade computer science people, who immediately recognize Bitcoin and p2p cryptocurrency as a revolutionary idea. As you know, russians love revolutions...  

Plus, it's a chance in some small way "to get out from under the thumb of The Man"...

It's simply cool to make "new money" yourself. I remember as a school kid in the Soviet Union, sometimes a fad would break out in school where many of us kids would take pieces of paper and turn them into our own, personal money notes by drawing intricate designs on them with magic markers, and trading them with our classmates...

As far as the criminal element, the russian crackers are a competent community, and have proven that in Bitcoin, but i think that professional, organized criminals still prefer USD, metal, and other more traditional money...  

Perhaps, we should ask our main topic starter and information gatherer, ArsenShnurkov, to do a poll on the Bitcoin penetration among the russian criminals...  

Hmm. Hundreds x $10k+ = millions of dollars per month. 50 BTC/block x 144 blocks/day x 30 days/month x $11/BTC = $2.4 million/month.

TL;DR: You're wrong, there can't be "hundreds of people making $10k+ per month with botnets". Tens, maybe.

You're reading it wrong lol


10k is total # of bots.
A lot less is connected at a given moment.

From your own link.


13 GH/s to 20 GH/s on 10K nodes.  or ~1.65 MH/s per node.  Thanks for confirming what I wrote.

especially with stolen electricity 

+1

No, you don't understand. You can still make huge amounts of coin at current difficult with botnets that exclusively use CPU miners. That's right CPU only miners. I am not saying it is ideal, and obviously the big players are doing GPU mining, but I am trying to make the point that ASIC is not going to be remotely close to "fixing the botnet problem".

Also we are not talking about 100+ coins a month. We are talking about people making 10,000+ coins a month each. It is a huge % of the total coins generated per month, I would not be surprised if botnets reached 50% of total hashpower in the future. It is only on the rise as more people with the knowhow find out how much can be made.

It is popular to target gamers and bind malware with games and cracks, especially those that are popular atm. Even if the avg. gamer gpu does 50-150 MH/s with 10k bots it would be ~1TH/s (assuming 24/7 100% use, let's say 1/3 of that is a more realistic figure).

Bitcoin botnet operators even make AMAs now:

http://www.reddit.com/r/IAmA/comments/sq7cy/iama_a_malware_coder_and_botnet_operator_ama/

That doesn't require a large number of nodes in Russia.  

Still you aren't the first to bring up botnets, however the influence of botnets is small and waning.  Each generation has made botnets less suitable for Bitcoin mining (CPU -> GPU -> FPGA -> ASIC).  The average botnet node is a much older Windows XP box.  While top of the line CPU can push 20MH/s significantly older CPU can't.  For example an Athlon 64 X2 4000+ (an impressive CPU in its day) gets only 2MH/s and a 8 year old single core Celeron a fraction of a MH/s.  So even a 100,000 node botnet @ 100% load 24/7 would be maybe 100GH/s.  When you consider the average node may only be on 30% of the time and load needs to be throttled to avoid detection real world it might be more like 16 GH/s per 100,000 nodes.   FPGA would have killed botnets eventually but ASICs will do it much faster.  In 2013 difficulty will probably be 10x to 20x as high as now.  That combined with the subsidy cut means revenue per GH/s is going to fall to pennies a day. 

I would point out LiteCoin is particularly susceptible to botnets and while it can be mined with a GPU the ratio between CPU throughput and GPU throughput is relatively low thus it takes a smaller number of nodes to equal the entire hashing power of the LiteCoin network.  As Bitcoin becomes increasingly toxic to botnet they will migrate to LiteCoin and represent a larger and large portion of hashing power. 

Yup sky is falling. Or you are clueless. ASIC will fix the botnet problem. Botnet are useful for other things, once bitcoins becomes less profitable they will move to other things. You say there is no cost but it's not true since botnets can be sold thus opportunity cost. When the cpu/gpu nets go from producing 100+ coins a month to 1 coin a month you can bet they will do other things with the zombies.

In Russia, bitcoin mines you.

I doubt the ASIC owners will allow themselves to be hacked and unaware that someone uses their hardware to mine BTC.
Once ASICs are common (1TH/s for $30k) most botnet operators will cease making substantial profits from mining due to huge difficulty increase.