Why am I mining for bitcoins again

"Satoshi "Zipang" Katsura" (sundowne36)
02/26/2014 at 18:18 • Filed to: None

I leave my computer on constantly and I don't know why I am firing up BitMinter.

Except I need monies.

DISCUSSION (27)

Brian Silvestro > Satoshi "Zipang" Katsura
02/26/2014 at 18:20

What is mining for bitcoins?

How does one do that?

xxxxxx > Satoshi "Zipang" Katsura
02/26/2014 at 18:20

There are so many more profitable coins like mintcoin or dogecoin.

Frosted > Satoshi "Zipang" Katsura
02/26/2014 at 18:21

Ok I'm late to the game. What are bitcoins?

SnowBallin > Brian Silvestro
02/26/2014 at 18:24

The Dummy Gummy > Satoshi "Zipang" Katsura
02/26/2014 at 18:25

You are going to use more energy mining than you'll actually make.

Bandit > Satoshi "Zipang" Katsura
02/26/2014 at 18:26

But Satoshi, don't you have money teats?

Osiris - I can haz Euro spec? > SnowBallin
02/26/2014 at 18:31

x3 I have no idea what this is!

Satoshi "Zipang" Katsura > Bandit
02/26/2014 at 18:34

Kinja'd!!!

Satoshi "Zipang" Katsura > The Dummy Gummy
02/26/2014 at 18:42

I'm actually using my computer as a heater for my room as well, if that counts. And the fact that it's on 24/7.

The Dummy Gummy > Satoshi "Zipang" Katsura
02/26/2014 at 18:44

Haha awesome. Just wanted to warn you ahead of time.

GhostZ > Satoshi "Zipang" Katsura
02/26/2014 at 19:02

Mine in a profit-seeking multipool. Then you might actually make money. Any SHA coin is pretty much dead now thanks to ASICs, so unless you want to throw $100,000 at equipment, you're better off with using GPUs on scrypt coins.

GhostZ > xxxxxx
02/26/2014 at 19:02

Except that both of those have high interest costs because of the massive hyperinflation they're going through. Mine something that will increase in value as you mine it.

GhostZ > Brian Silvestro
02/26/2014 at 19:07

Mining is solving algorithms on a computer competitively, the first person to solve the algorithm is granted a "new" Bitcoin. It's basically distributed coin minting/inflation. It takes a lot of computing power and the stiffer the competition, the more difficult it is.

Basically, "difficulty" is the length of the algorithm. Hashrate is how fast you move through that distance. So if you want to get the same average number of coins per day, your hashrate needs to increase proportionally to the hashrates of everyone else, hence, competitive. Outside of extremely expensive dedicated computers, Bitcoin is impossible to mine nowadays, but there are literally hundreds of clones out there that are still profitable.

GhostZ > SnowBallin
02/26/2014 at 19:07

See my reply to Brian

GhostZ > Osiris - I can haz Euro spec?
02/26/2014 at 19:07

See my reply to Brian

TheLOUDMUSIC- Put it in H! > Satoshi "Zipang" Katsura
02/26/2014 at 19:09

GhostZ > Frosted
02/26/2014 at 19:10

Bitcoin is a program that uses difficult-to-break cryptography as a form of "virtual currency". Unlike currency though, you don't actually hold onto it, but instead your program agrees with the thousands-to-millions of other programs out there about what transactions have previously taken place. Then it traces back those transactions until you arrive at the money you "should" own.

It would be like a bank showing no balances, just transactions and the "balance" from adding and subracting all the transactions from an account. Anyone can edit it, HOWEVER, every other person who has money at the bank HAS to sign off and agree to your edit as legitimate in order for it to be accepted, and its very, very hard to forge signatures. That's basically what the program does in real terms.

Brian Silvestro > GhostZ
02/26/2014 at 19:10

Kinja'd!!!

GhostZ > Brian Silvestro
02/26/2014 at 19:14

Simpler terms:

Instead of having a Mint that prints dollars, the Bitcoin program allows anyone waste their computer power and be paid for their time and energy directly. But it's competitive, so if you are late to the game or do not have a massive computer, you could spend (with a normal computer) millions of years solving algorithms before ever being granted one. There are other, less competitive coins however.

GhostZ > The Dummy Gummy
02/26/2014 at 19:15

Only if you mine just Bitcoins. There are hundreds of coins out there that are still profitable that are not Bitcoin.

Brian Silvestro > GhostZ
02/26/2014 at 19:17

1. What kinds of computers are considered "competitive/massive?"

2. These "less competitive" coins, point me in their direction.

GhostZ > Brian Silvestro
02/26/2014 at 19:25

1. There are two types of algorithms. SHA-256 and Scrypt. SHA-256 is the extremely competitive one, because it is much easier to calculate so cheaper computers can be built that put out the same rate. Scrypt is the one that is still profitable. Building an SHA-256 miner is a multi-million dollar endeavor.

Most coins are sitting around .00002 bitcoins-per-kilohash-per-second-per-day. A kilohash is a measurement of your computer's performance in solving those algorithms (1 hash is a solved algorithm, 1000 hashes per second is 1 kilohash per second). Or, in other words, the speed at which you'll be able to mine. Having a graphics card with many cores is essential.

Most laptops have about 2-3 KH/S. (<$800 to buy such machine)

Gaming laptops can have up to 20-50 KH/S. (>$1500)

Most desktops have about 30-60 KH/S (<$1000)

Most gaming desktops have about 500-700 KH/S (>$1500)

Most cheap dedicated computers (built solely for mining) have about 600-1200 KH/S ($1000-$2000)

Most mid-range dedicated computers have about 1500 - 5000 KH/S (Between $3000 and $6000)

Expensive dedicated computers have over 5000, up to 10000 KH/S. (>$10,000)

You can look up your particular hashrates (with optimized settings) for your graphics card here: https://litecoin.info/Mining_hardwar… Litecoin is the largest coin that uses Scrypt algorithms.

This website is pretty coin for finding comparative measurements for the coins:

http://www.coinwarz.com/cryptocurrency

Brian Silvestro > GhostZ
02/26/2014 at 19:27

Kinja'd!!!

GhostZ > Brian Silvestro
02/26/2014 at 19:32

People who are still mining are about 4-5 steps behind the game.

1. Mining yourself

2. Running a pool that mines for other people

3. Selling mining hardware

4. Creating a business/service/exchange that deals in Bitcoins

5. Creating your own clone/version of the code < and even this is starting to become less and less profitable, as it takes considerable time and resources to promote your own coin.

Brian Silvestro > GhostZ
02/26/2014 at 19:38

So what should I do as a poor college student with limited knowledge/resources and a Mac computer?

Also, the fact that "Dogecoin" exists makes this 1000 times more interesting.

GhostZ > Brian Silvestro
02/26/2014 at 23:39

Kinja'd!!!

Now that's the great question then, isn't it?

Go do some research into it.

Brian Silvestro > GhostZ
02/27/2014 at 08:08

Got it. Thank you so much for all of the info.