4 New High-Powered Bitcoin Miners Revealed - Crypto BTC Mining
Is it possible to build a bitcoin miner that mines 1 Terra
Bitcoin Hashrate Records New All-Time High Amid Halving And BTC Bullish Momentum
With The Third Bitcoin Halving Already Here, Bitcoin Bulls Are Showing No Signs Of Support For The World’s Leading Cryptocurrency While the crypto world was frantic about Bitcoin’s third halving event, which occurred on May 12, it came with a bullish sentiment among traders and holders. However, the halving produced 5%-8% price swings in both directions prior to the halving. The market didn’t seem to respond to the much-anticipated halving. The weekend saw $1,3 billion in liquidations, which put pressure on Bitcoin bulls. Shortly after Bitcoin’s reward cut, Bitcoin’s price peaked, before correcting itself to currently trading at $8,745.98 Meanwhile, the Bitcoin mining industry seems to be going all-in on validating blocks, as the computing power on Bitcoin’s network, or hashrate, increased to a new all-time high. The 140 terra hash-per-second (TH/s) all-time high surpassed the recent 135 TH/s all-time high of March 2020, meaning that miners deployed all their recourses to celebrate the halving event. Source: Coinwarz The crypto community welcomed the halving, as TIE published data, showing the word “halving” being present in over 2,900 tweets. Reddit also showed signs of buzzing in the moments prior to the halving and shortly after it. Joshua Frank, TIE’s founder commented on the data, stating that “Bitcoin became a hot topic in the past 30 days, with a 72-percent conversation surge, and with peaks in search terms of Bitcoin and halving crypto related terms in Twitter. Bitcoin also surpassed 50,000 daily tweets, which is a new six-month high.” Source: Twitter “In the 30-day window prior to the halving, the word “halving” appears to be dominant in the conversations, regarding Bitcoin,” Frank added. Google searches for “bitcoin halving also increased four times, as opposed to the 2016 halving event. However, most crypto enthusiasts believed Bitcoin would record double, or even triple-digit price increase, due to the halving. The short rally proved them wrong, but many consider the real price surge to start in the following 18 to 24 months. Historically, Bitcoin showed an initial decrease in value before skyrocketing in both price and trading volumes. The halving event drove an increase in daily trading volumes in the month before the reward cut. However, trading volumes have increased 50 times since the last halving in 2016. Spot market volumes received a boost from a peak of $1,5 billion in June 2016, and it was close to $30 billion in April 2020. Nevertheless, market players are still stagnant about making strong predictions about Bitcoin’s future price, as this time it would take longer for the market to gain from the bullish momentum the halving created.
Triple Increase On BTC Transaction Fees Just Before Bitcoin`s Third Halving
The Average Price Per Bitcoin Transaction Reached $3,19 On 8th May, After Increasing With 300% From $0,62 Per BTC Transaction, As Of 26th April The world of cryptocurrencies is franticly preparing for Bitcoin’s third halving event, which would cut down the reward that miners receive for validating transactions. Historically, prior to a halving event, transaction fees skyrocket. The last halving resulted in peak transaction fee of $0,62, with transactions costing a mere $0,10 just weeks before. Source: Bitinfocharts However, the halving event means something more than just transaction fees increase. Bitcoin suffered from increased volatility over the past weekend, with prices swinging from close to $9,700 on May 10, to shrink as low as $8,466 on May 11. Nevertheless, Bitcoin’s price is still 40% up year-to-date (YTD), which implies strong support from Bitcoin bulls. The price swing outperforms serious investment assets like gold (XAU) and U.S. dollars. Speculators expect the halving event to boost Bitcoin’s price, as the price inflation reduces when the reward for mining a Bitcoin block reduces in half. Тhe primary reason behind both Bitcoin’s price increase and inflation reduction is a term, called scarcity. Scarcity resembles how rare to obtain a given asset is. Meantime, Bitcoin’s user base is exponentially increasing. The current 1,800 BTC-per-day premium would be reduced to 900 BTC per day. Joe Llisteri, the co-founder of crypto derivatives exchange Interdax, stated that over time, the reduction of BTC supply would ultimately lead to a reduction in sell pressure. “The factors add up to an increase in upwards momentum for Bitcoin’s price.”, Llisteri added. Llisteri also noted that this time Bitcoin’s upwards momentum may see a slower effect, due to progressively longer life cycles for Bitcoin after a halving event. “Currently, we are looking at 18-24 months until a possible all-time high. Timewise, Bitcoin may reach an all-time high between October-November 2021 and May-June 2022.”, Llisteri concluded. However, small and medium-sized miners may take a serious hit, as the price reward cut may mitigate all possible earnings from small mining enthusiasts and mid-sized mining rigs. Even with the much-anticipated Bitcoin price boost, much of the miners may shut down operations prior to the price increase. Speaking of mining, Bitcoin’s hash rate continues to keep a steady growth, slightly declining from its yearly high of 123.2 terra hash-per-second (TH/s). There are two possible scenarios – either more miners are joining the Bitcoin network, or current miners are driving their existing rigs to a maximum.
Ukraine Diverts Free Nuclear Plant Power For Transaction Processing Operations
Ukraine’s Nuclear Power Plants Are Storing Electricity Surplus Due To The Lower Amounts Of Power Consumption As the crypto world prepares for the third Bitcoin halving, the Ukrainian Ministry of Energy and Environment (MEE) proposed the excess electrical power generated from the power plants to be relocated into processing transactions. Currently, Ukraine has dropped its power consumption drastically, as many businesses are shutting down operations due to the COVID-19 virus outbreak. The MEE suggested transaction processing as a “perfect tool for using leftover electricity, as well as economic and social development.” “Having such excess means we can direct it to various sectors like cryptocurrencies. This way, we would keep the minimal loads on the nuclear power plants, as well as grant the chance of crypto-oriented businesses to receive fresh funds from transaction processing. Also, by directing the power into transaction processing, we are creating an entirely new approach to the world of cryptocurrencies and digital economies,” the Ministry stated. The problem with excess electricity occurs because Ukrainian nuclear power plants have to produce a guaranteed minimum of electricity each month. However, due to widespread energy-consuming businesses shutdowns, the quantity of electric power remains unused. The current power cost per Kilowatt of electricity in Ukraine is around $75/MWh. The news comes amid more countries opening their doors to digital currency transaction processing companies. Recently, the Iranian government gave the “thumbs up” and licensed Turkish transaction processing company iMiner. The license means iMiner would become the largest crypto transaction processor in Iran. iMiner’s license also covers trading and custodial services. The Turkish payment processor is going to facilitate a $7,3 million investment into the mining farm. The farm itself is expected to be able to work with a maximum load of 96,000 terra hash per second (TH/s). Over 6,000 machines would do the computing power. In 2019 alone, the Iranian government gave over 1,000 licenses to both individuals and companies, which process transactions with a reported 148,000 ASIC-based mining rigs. Furthermore, governments, which are usually harder to adopt new technologies, seem to find the benefits of granting transaction processors to works, are now focusing on creating the foundations of their digital economies. Iran, for example, needs a digital economy if a new war conflict with the U.S. arises. Ukraine also sees its geopolitical dependence from Russia and seeks alternative funding routes.
What's the difference between Litcoin and Bitcoin?
In 2009, Satoshi Nakamoto launched bitcoin as the world’s first cryptocurrency. The code is open source, which means it can be modified by anyone and freely used for other projects. Many cryptocurrencies have launched with modified versions of this code, with varying levels of success. Litecoin was announced in 2011 with the goal of being the ‘silver’ to bitcoin’s ‘gold’. At the time of writing, Litecoin has the highest market cap of any mined cryptocurrency, after bitcoin. Here’s our guide to show you the crucial difference between bitcoin and litecoin. Mining differences Just like bitcoin, litecoin is a crytocurrency that is generated by mining. Litecoin was created in October 2011 by former Google engineer Charles Lee. The motivation behind its creation was to improve upon bitcoin. The key difference for end-users being the 2.5 minute time to generate a block, as opposed to bitcoin’s 10 minutes. Charles Lee now works for Coinbase, one of the most popular online bitcoin wallets. ASIC Mining For miners and enthusiasts though, litecoin holds a much more important difference to bitcoin, and that is its different proof of work algorithm. Bitcoin uses the SHA-256 hashing algorithm, which involves calculations that can be greatly accelerated in parallel processing. It is this characteristic that has given rise to the intense race in ASIC technology, and has caused an exponential increase in bitcoin’s difficulty level. Litecoin, however, uses the scrypt algorithm – originally named as s-crypt, but pronounced as ‘script’. This algorithm incorporates the SHA-256 algorithm, but its calculations are much more serialised than those of SHA-256 in bitcoin. Scrypt favours large amounts of high-speed RAM, rather than raw processing power alone. As a result, scrypt is known as a ‘memory hard problem‘. The consequences of using scrypt mean that there has not been as much of an ‘arms race’ in litecoin (and other scrypt currencies), because there is (so far) no ASIC technology available for this algorithm. However, this is soon to change, thanks to companies like Alpha Technologies, which is now taking preorders. GPU mining To highlight the difference in hashing power, at the time of writing, the total hashing rate of the bitcoin network is over 20,000 Terra Hashes per second, while litecoin is just 95,642 Mega Hashes per second. For the time being, ‘state of the art’ litecoin mining rigs come in the form of custom PCs fitted with multiple graphics cards (ie: GPUs). These devices can handle the calculations needed for scrypt and have access to blisteringly fast memory built into their own circuit boards. There was a time when people could use GPU mining for bitcoin, but ASICs have made this method not worth the effort. If you are a developer, cryptocurrency investor, or just a curious person and want to invest some time to learn about cryptocurrency visit BTCNEWZ Transaction differences The main difference is that litecoin can confirm transactions must faster than bitcoin. The implications of that are as follows:
Litecoin can handle a higher volume of transactions thanks to its faster block generation. If bitcoin were to try to match this, it would require significant updates to the code that everyone on the bitcoin network is currently running.
The disadvantage of this higher volume of blocks is that the litecoin blockchain will be proportionately larger than bitcoin’s, with more orphaned blocks.
The faster block time of litecoin reduces the risk of double spending attacks – this is theoretical in the case of both networks having the same hashing power.
A merchant who waited for a minimum of two confirmations would only need to wait five minutes, whereas they would have to wait 10 minutes for just one confirmation with bitcoin.
Transaction speed (or faster block time) and confirmation speed are often touted as moot points by many involved in bitcoin, as most merchants would allow zero-confirmation transactions for most purchases. It is necessary to bear in mind that a transaction is instant, it is just confirmed by the network as it propagates.
How Privacy Coins Work Bitcoin transactions are semi-anonymous: every transaction on the blockchain is broadcast publicly and visible for all eternity, but the owner of each wallet is unknown. Tying addresses to real-world identities is now relatively easy for the powers-that-be, because everyone has to cash out somewhere, and that usually involves linking bitcoin addresses to bank accounts. Privacy Tech Algorithms The three most common privacy algorithms are zk-Snarks, Coinjoin, and RingCT. The latter method is used in monero; Coinjoin features in dash and is also being trialed with bitcoin; and zk-Snarks are used by most of the Z coins including Zcash. Here’s how they work: RingCT: Monero’s ring signatures allow the sender to hide their transaction among other outputs. In addition, RingCT makes it possible to hide the amount being sent. Coupled with a stealth receiving address, this makes for an extremely discreet way of sending funds. Transparency is optional with monero, which uses an “opaque” blockchain. Coinjoin: Developed by Gregory Maxwell, Coinjoin deploys a ‘safety in numbers’ approach. When two senders despatch a transaction of an identical amount, this is converted into a joint payment. When this occurs, correlating the transaction inputs and outputs is virtually impossible. There are many variants of Coinjoin including Private Send, which is used by dash, and Coin Shuffle; Cash Shuffle is the version currently being tested with bitcoin cash. zk-Snarks: Zero-Knowledge Succinct Non-Interactive Argument of Knowledge is a technology that allows miners to verify transactions without knowing who sent or received the coins. Using a cryptographic hash, each party can prove that a certain statement is true without revealing the precise details of who sent what and where. Although most commonly associated with the Zerocoin family, zk-Snarks are also being tested with ethereum. The Main Privacy Players Zcash: Born out of the Zerocoin protocol, Zcash is basically bitcoin with the option of privacy. There’s a fixed supply of 21 million coins and despite using a public blockchain, Zcash allows for the sender, recipient, and amount being sent all to be concealed. Researchers have published evidence that suggests some Zcash transactions can be de-anonymized, though for everyday usage, Zcash should still provide enough privacy for most people. Monero: Like Zcash, monero has emerged as a viable cryptocurrency in its own right, even for individuals who aren’t interested in privacy. Its privacy tech is highly regarded and numerous deep web marketplaces accept monero. Monero usage surged in the wake of the Alphabay shutdown, after it emerged that feds were unable to determine how much XMR the site’s alleged kingpin, Alexandre Cazes, held. Dash: By market cap, dash is the biggest coin on this list. It’s not an outright privacy coin however, but does have Private Send for users who’d prefer to keep their business to themselves. Transactions are confirmed by 200 TerraHash of X11 ASIC computing power and over 4,500 servers hosted around the world. Zcoin: The other Z worth mentioning, Zcoin enables users to “mint” a coin on a public ledger so as to transform it into a private coin. This process can be repeated multiple times, allowing a coin to be sent publicly or privately as desired. Pivx: An open source project, Pivx is another community-oriented privacy coin. It uses a mixing mechanism that’s based on Coinjoin, but which operates in a decentralized manner, aided by a network of masternodes. PIVX is the first proof of stake cryptocurrency to be based on the version 0.10 or higher Bitcoin codebase, and the PoS structure utilised does away with coin age, meaning in order to get the most out of your staking you must keep your wallet open at all times, resulting in more constantly available nodes, strengthening the network. Verge: XVG is another anonymous cryptocurrency that was designed for privacy-friendly networks such as Tor and I2P. The general consensus is that verge isn’t as private as some of its competitors, so don’t trust it with your life. On the plus side, it boasts fast and low-cost transactions. Spectrecoin Native Tor Integration preserves network privacy and protects users against surveillance, by keeping traffic within the Tor network at all times. OBFS4 Bridge Support facilitates undetected use in countries that block Tor, such as China & Iran. Spectrecoin is the only privacy coin to offer this feature Deep Onion Deep Onion is a hybrid cryptocurrency that uses proof of stake (PoS) and the X13 proof of work (PoW) algorithm. It is natively integrated with the TOR network and ALL connections are made over the TOR network. Deep Onion is 90% premined, but 70% will be air-dropped to community, 20% will be used for bounties, rewards and other promotions, and about 10% will be reserved for the development team. The development team from Deep Onion focuses on creating a secure and anonymous transaction network as much possible. To achieve that they are utilizing the Tor network to connect up to. As a result your IP address is not registered anywhere when using Deep Onion. Instead of this an anonymous Tor network ID is created for you. What sets DeepOnion apart from other privacy Cryptos are its ability to adapt to market changes and constantly updating the platform. In this regard we have new features that will be realised soon in the form of DeepSend, these features will offer more anonymity and privacy operation over the TOR network which will make DeepOnion one of the most secure Private Crypto currencies in this age. However, a particular Crypto currency provides an answer to the subject of Safety and Privacy. DeepOnion is an anonymous cryptocurrency which focuses on the privacy of its users. The DeepOnion developers utilize the Tor network to enable them to meet their key objective which is security. One of the qualities of this coin that makes it attractive to users is the fact that while using it, the user’s IP address is not registered on any platform. Instead of having your IP address registered, one gets an anonymous ID created for them in the Tor network. The Tor network offers multiple levels of privacy to ensure that your location, online activities, and identity are kept entirely confidential. Tor is tightly integrated into the DeepOnion wallet, and it conceals a users identity and their online activity from any third parties by separating your identification and routing online traffic by the implementation of onion routing, which encrypts and then randomly bounces communications through a network of relays around the world. Concealing your IP address is beneficial in that you can make transactions anonymously and no transaction can be traced back to you. Well, while some may fear that this is a loophole allowing for illegal transactions, it provides security for individuals making large transfers. Additionally, the coin boasts prompt transactions, with a faster speed than Bitcoin. The DeepOnion coin is still relatively young, yet it has managed to establish a very supportive community. Like bitcoin, DeepOnion runs on a peer-to-peer network, but its use of Tor network comes in as an added advantage. When using DeepOnion, one can be sure that their internet service provider or even the government is not monitoring them. It is freedom and privacy all in one package.
At what price will Bitcoin fail to function? My estimate: ~$100.
I'll begin with my conclusions: If the Bitcoin network consisted solely of 'Titanium ASIC' miners, the most powerful and energy efficient mining machine I know of, then the price point at which electricity costs begins to exceed rewards is $71/BTC (based on yesterday's network figures; more on that later). More realistically though, most miners aren't running highly efficient Titanium ASICs, hence I estimate ~$100/BTC as the turning point. I say 'fail to function' in my title, because who will continue to mine at a pure loss? It would be irrational - the rational action would be turn off the machine until the value of the rewards increases. Note: This is not the same as sunk costs in buying hardware - because in that case even if you never get back how much you paid, you're still making something. Perhaps, you might counter, Bitcoin enthusiasts will continue to mine at a loss. Well consider this: To sustain just 1% of the current network hash rate, you would require 559 Titanium ASICs costing over one million dollars in yearly electricity cost (at $0.10/kWh) - and that's a best case scenario. Let's assume that's the case - you have Bitcoin Enthusiasts contributing the equivalent of 559 Titanium ASICs hashing power for free out of their pocket. That's a 99% drop in hash rate. The time to a difficulty retarget is 2016 blocks, or at 10minutes/block that's 2 weeks. But if the hash rate were to drop by 99% within that two week period, then the block time would balloon out to 16.66 hours - making the block retarget ETA up to 3.8 years! If transactions took 16.66 hours just to get a single confirmation (if they had first priority), then how would use of Bitcoin remain practically feasible? Would people still have confidence in the system and the developers for allowing this to happen? How difficult or costly would it be to launch a 51% attack? Now, on to the calculations, and a few less optimistic alternate scenarios: Network hash rate at time of calculation: 335,365,290.09 GH/s 335,365,290.09 GH/s / 6000GH/s = 55894.215 'Titanium ASIC' miners 55894.215 x $5.28 daily electricity cost (At $0.10/kWh) = $295121.4552/day in electricity costs = $1776.87709485/block (avg. time of 8.67 minutes) $1776.87709485 / 25BTC block reward = $71.04/BTC = break even point. The above does not account for pool fees or transaction fee revenue or more importantly variance in kWh rates ($0.10/kWh is nonetheless pretty low worldwide), and hardware cost is irrelevant to this calculation. Without doing all the math again, here's some other popular mining machines for comparison: $113.07 (SP35 Yukon) $193.84 (CoinTerra TerraMiner IV) $385.89 (Antminer S1) I've also just seen the 'Antminer S4' mentioned in /Bitcoin, so just for comparison a Titanium ASIC is almost twice as energy efficient as an Antiminer S4 (2200W vs. 4200W for 6TH/s) - it's less efficient than the SP35 Yukon. If I've made any miscalculations here or have left anything important out, feel free to correct me.
TL:DR: Don't bother mining if you want to get rich yo. You're way too late to the party. Welcome to the exciting and often stressful world of bitcoin! You are wondering what looks like a once in a lifetime opportunity to get rich quick. Of course you guys probably heard about this "mining" process but what is this? Simply put, a bitcoin mining machine that performs complicated calculations and when deemed correct by the network, receives a block which contains 25 bitcoins (XBT). This is how bitcoins are generated. So your brain instantly thinks, "Holy shit, how can I get on this gold rush?" Before you proceed further, I would like to explain the concept of mining further. Bitcoin is limited 21m in circulation. It is coded to release a certain number of blocks at a certain time frame, ie: this year the network will release close to 500,000 bitcoins. What this means is that the more people (or specifically the amount of mining power) mine, the less each person gets. The network tries to keep to this time frame through the process of difficulty adjustments which makes the calculations harder and this happens every 2 weeks. So every 2 weeks, you get less bitcoins with the same hash rate (mining power) based on what the difficulty changes are. Recently, the changes have been pretty staggering, jumping 226% in 2 months. You can see the difficulty changes here. Now, why are these changes so large? A bit of a simple history. Bitcoin's algorithm runs on SHA-256. This algorithm can be solved using many hardware, from CPU to GPU and dedicated hardware (Application Specific Integrated Circuits). When bitcoin first started, mining on CPU was a trivial process, you can pretty much earn 50 XBT (the block size then) every few hours between Q1 and Q2 of 2010. In late 2010, due to the difficulty increase that is reducing the effectiveness of CPU mining, people started to harness GPU mining. Only AMD GPU's architecture design are better optimized for bitcoin mining so this is what the community used. Immediate improvements of more than 10x was not uncommon. In time of course, GPUs reached their limit and people started to build dedicated. In the same vein as the CPU to GPU transition, similar performance increase was common. These ASICs can only perform SHA-256 calculation so they can be highly optimized. Their performance mainly depends on the die size of the chips exactly like CPU chips. In general, think of bitcoin mining's technological advancement no different to mining gold. Gold panning (CPUs) vs pickaxes (GPUs) vs machinery (ASICs) and we are still in the ASIC mining race. ASIC mining started with ASICMiner and Avalon being first to the market, both producing 130nm and 110nm chips. The technology are antiquated in comparison to CPUs and GPUs which are now 22nm with 14nm slated for Q1 next year by Intel but they are cheap to manufacture and with performance gains similar to the CPU to GPU transition, they were highly successful and popular for early adopters. At that point in time since there were less competing manufacturers and the low batch runs of their products, miners became really rich due to the slow increase in difficulty. The good days came to an end mid August with an unprecedented 35% increase in difficulty. This is due to existing manufacturers selling more hardware and many other players coming onto the market with better hardware (smaller die). Since die shrinking knowledge and manufacturing process are well known along with a large technological gap (110nm vs 22nm), you get an arms race. Current ASIC makers are closing in on our technological limit and until everyone catches up, the difficulty jumps will be high because it is just too easy to get a performance increase. Most newer products run at 28nm and most chips are not well optimized, so it will be around another 6 to 9 months before we see hit a hard plateau with 22nm or 14nm chips. The estimated time frame is because manufacturing chips at 22nm or 14nm is a more difficult and expensive task. In the meantime most manufacturers will probably settle at 28nm and we will reach a soft plateau in about 3 months. Now, you might ask these questions and should have them answered and if you have not thought about them at all, then you probably should not touch bitcoin until you understand cause you are highly unprepared and probably lose lots of money.
I read that you can mine with a CPU/GPU, should I do so?
No. If you have to ask, please do not touch bitcoin yet. You will spend more on electricity cost than mining any substantial bitcoin. Seriously. At all. A 7990 would produce a pitiful 0.02879 XBT (USD $14 @ $500/XBT exchange rate) for the next 30 days starting 23 Nov 2013 at 35% difficulty increase. And if you think you can mine on your laptop either on a CPU or GPU, you are probably going to melt it before you even get 0.01 XBT.
I get free electricity and I have existing hardware, should I still mine?
Probably not because you probably forgot that GPUs and CPUs produce a ton of heat and noise. You can try but I see no point earning < $20 bucks per month.
Should I buy an ASIC machine?
No, because your machine will probably not mine as much as buying bitcoins. This situation is called the opportunity cost. While you can still make money if XBT rise in value, it is a fallacy.
IE: if you start mining on 1 Dec 2013, a KnC Jupiter running at 450Gh/sec (KnC lies as not all chips run at 550Gh/sec) will yield you a total revenue of 9.5189 XBT with a profit of 0.7859 XBT in profit by 30th Jan 2014 at a constant difficulty increase of 35%. The opportunity cost is: 8.5910 XBT @ USD $580/XBT with USD $5,000 which is the cost of a KnC Jupiter. This is the best you can earn and it's a bloody optimistic assumption because:
You are assuming your pre-order will arrive on time. (I do not think any first batch pre-order from any manufacturer has arrived on time).
All pre-orders are sold out for 1 Dec.
You are assuming your chips will run at 450Gh/sec minimum but many miners here will tell you their chips have been under performing.
Electricity cost have not been taken into account.
Shipping cost and time has not been taking into account.
Import Tax or VAT has not been taken into account.
Risk of downtime due to DOA or warranties has not been taken into account.
You are assuming the difficulty increase will be a constant 35% which is very unlikely because Cointerra with a team that has worked on some of the world’s highest performance CPUs, GPUs and chipsets for NVIDIA, Intel, Samsung, Qualcomm and Nortel has pre-sold an absurd amount of hash rate. Difficulty increase of 45% or more (which we have seen when a small player, KnC shipped their 1st batch) will be repeated commonly. This is only 1 company, imagine what the rest will come out with. I have failed repeatedly and so have many in estimating future hashrate. You wont be able to do better.
Even if you earn some profit, it will be < 15% and will probably be not worth your risk or your trouble. I can buy and hold XBT with no risk of losing them.
The only circumstances where you will earn money is when XBT exchange rates is so high that it makes the opportunity cost pales in comparison. Unfortunately this is not the case. If XBT stabilized at 900/XBT today (20 Nov 2013) then we might have a good case. The risk is just generally not worth it. Unless you have at least a hundred thousand and can make a contract with a manufacturer for a lower cost, do not bother. Just wait until the arms race is over then you can start mining.
I understand I probably won't earn any money, I just want to do this for fun/hobby...
Okay, go buy an AsicMiner USB Block Erupter. They are cheap and pretty fun to have.
I want something with more omph and still do not mind losing money
Sure, just read the answer below on who NOT to go for. You are doing bitcoin a service by securing the network and you have our (the users') gratitude.
Who are the manufacturers?
You can check out the manufacturers and their products below along with a calculator here. If you still insist on buying, do not to go for BFL. Their track record is horrid and borderline scammish. KnC fucked up a lot with defective boards and chips. Personally, I think CoinTerra is the best choice. Alternatively, you can go on the secondary market to buy a delivered product. You can get a better deal there if you know how to do your "return on investment (ROI)" calculation. Personally, I will go for a 45%-50% difficulty increase for the next 3 months for my calculations and a 2% pool fee. However, most products on ebay are sold at a cost much higher than it should. bitcointalk.org is a cheaper place because everyone knows what are the true value is so you will find less options. If you are unclear or need assistance, please post a question.
Which pool should I use?
I actually do not use any of the pools recommended to the left because I think they lack features. My favourite is Bitminter (Variable fees based on features used; max 2%). It has all advanced features for a pool, very responsive and helpful owner on IRC. Variable fees is good for those who do not need a large feature set, even with all features turned on, it is still cheap. Eligius (0% fees) has high value for money but lacks features. It has anonymous mining which might be attractive to certain subset of people but not for others. Many other community member and I disagree highly with the opinions of the owner on the direction of bitcoin. I do use his pool for now but I do so only because I share my miners with a few partners and anonymous mining allows us to monitor the machines without using an account. Bitminter uses only OpenID which is problematic for me. BTC Guild (3% fees) is another big pool and is fully featured and does charge a premium for their fees. That said, they are the most stable of the lot. I do use them but do so only because my hoster uses them for monitoring. I try not to use them because a pool with a very large hash rate (they are the largest) presents a large vulnerability to bitcoin's network if compromised. All of them pay out transaction fees.
An Insiders Take on CoinTerra & the Bitcoin Mining Sector
Having been involved in Bitcoin since 2011 and on the inside of one of the 28nm Bitcoin mining contestants for the past two months, here is my story. Feel free to skip the long intro to skip to the present: I added it because people might want to know where I'm coming from. My elevator pitch is that I discovered Bitcoin in 2011 while traveling in Argentina, and after doing research I started recommending it as an investment to the subscribers of my financial newsletter in early 2012. BTC was $5 back then, so we did well with that. Here are some links of the things that I've done in Bitcoin:
Since the beginning I've been thinking a lot about how I wanted to invest in Bitcoin. It has always made plain sense to me to begin with buying coins, as it is like an ETF on the entire Bitcoin economy. However, in early 2012, just the idea of buying bitcoins was a pretty scary prospect. I consulted with two core developers who actually tried to dissuade me from looking at Bitcoin as an investment. One said it was still very much an experiment, the other said (correctly so) that there were still substantial security risks. Eventually it was my experience in Argentina's difficult economy (rife with currency crackdowns and capital controls) that convinced me to take the leap - I decided that there was enough demand and enthusiasm for financial freedom in the world. Enough for some crazy people to keep funneling resources into Bitcoin, resources that would support the idealist hackers and maverick entrepreneurs to make the technology of cryptocurrency a success. So I started buying bitcoins, considering myself lucky because my friends in Latin America had it much tougher: they had to mine most of their cryptocurrency in their basement with graphic cards because of the harsh capital controls that prevented them from sending money abroad and buying them on an exchange. In all, 2012 was a difficult year for Bitcoin. The 'old' bitcoiners were still psychologically numbed from the huge decline in price, and the newbees were continually scared by new scandals: the Bitcoinica thefts in May and July, the BTC Savings and Trust-ponzi implosion in August, and the Bitfloor theft in September. The price of Bitcoin hovered between $5 and $13 all year, the mainstream media ignored or at best scorned Bitcoin, and I for one was mostly happy to still have an unscathed wallet. Throughout the year I wrote about Bitcoin practically every week in my email updates and every month in my printed investment newsletter. It was often a frustrating job, because my many of my subscribers are babyboomers or from an older generation who don't intuitively grasp the concepts of peer-to-peer, open source, online, etc. I received a good number of emails accusing me of promoting a ponzi scheme, and my publisher (who does all the promotion for the newsletter) was very sceptical and tried to persuade me to write less about Bitcoin and more about traditional investments like gold and stocks. I think this tension/struggle is part of what prevented me from exploring the investable side of the Bitcoin economy for quite a while, although I did buy a few Bitcoin mining stocks on the GLBSE. (Compliments to the miners that kept paying out dividends even after the wild ending of this stock exchange - COGNITIVE is one of them) Attending the Bitcoin London conference organized by Amir Taaki in late 2012 was definitely a turning point for me. Cryptocurrency suddenly became tangible and real, and I think that was the case for many people there. During Amir's conference, I made friends with Jim from MultiBit and Nejc from BitStamp. I likely missed an investment opportunity with BitPay (even though Tony Galippi was just as impressive back then as he is now), and I tried to persuade GLBSE's Nefario to start talking to a lawyer about the legal risks of running a Bitcoin denominated exchange. Josh from Butterfly Labs made an announcement there in London, and that was my first experience with the excitement and controversy that characterizes so much of the Bitcoin mining industry today. Meanwhile my investment newsletter kept doing well, and I decided to make a move to South America to expand my horizon. That's how it happened that I was with my friends in Buenos Aires when the March-April 2013 explosion in price happened: an exhilarating time, and I'm still grateful for their long term Bitcoin experience which helped me make the right decisions for myself during this period. Still I kept thinking about how I could invest some of my gains back in the Bitcoin economy. Chasing a dollar profit doesn't make sense to me, so I had to identify business models that gave perspective for making a multiple on my bitcoins. Bitcoin mining felt like an interesting fit, for several reasons. First, I spent the past few years studying the gold mining industry and the parallels and differences with Bitcoin mining are absolutely fascinating to me. Next, in the short run I am not at ease regarding the authorities ability to attack or destabilize the BTC network. Many will object by saying that the Bitcoin network has a hashrate that's currently 40 times faster than top 500 supercomputers combined. However, that is misleading because the equation would change dramatically if those computers were equipped with specialized ASICs that can be produced for a couple of million dollars. This is what Jim Rickards referred to when he said "technologists don't understand the world of power politics and malicious actors: there are people who don't care about the cost. (…) If they want to destroy a system, and they have to pay to do it, they'll do it. It's not necessarily more expensive than buying an aircraft carrier or building a submarine." This is the reason why I think it's crucial to push up the network speed as close to the physical limits as possible. Once the miners are working on the smallest node and with the most efficient chip possible, it will be much more difficult for a malicious entity to do a 51% attack on the network. (By the way, much respect to the small bitcoiners and basement miners for this: they are the ones that have been bankrolling the expensive development of ever more sophisticated ASIC chips. They are the ones that are slowly turning the once brittle skeleton of the Bitcoin network into an indestructible Adamantium shield.) Finally, it seemed obvious to me that the Bitcoin mining market was about to enter a consolidation phase, in which the market would increasingly sponsor the more reliable and technically gifted chip producers, which will eventually create a more stable environment for everyone. How exciting, to try and witness from the first row how an entirely new industry grows from childhood/adolescence towards maturity! Enter CoinTerra. I first met Ravi Iyengar and his team members at the San Jose Bitcoin conference, where they pitched for an angel investment in their company. I was immediately impressed by their passion, technical pedigree, and understanding of the workings of Bitcoin. I was definitely intrigued and after the conference we kept the communication lines open. Back in Belgium I met with two interested angels who happened to be Belgian, too. I then talked to different people with hardware backgrounds to verify whether Ravi's team really was that good judging by the industry standards. They were. I started getting excited. From there on, things began moving fast. The two Belgians got in and the more I talked to Ravi, the more I was impressed with his cogent reasoning, his decisiveness, and the speed by which he absorbs large amounts of new information. By mid July I finally made the decision to also come in as the third angel investor in CoinTerra. When I talked about the company to Timo Hanke (German cryptographer and author of the Bitcoin Pay-to-Contract protocol) he was intrigued, did his own due dilligence, and soon after became an investor in, and later a team member of CoinTerra. Other investors and advisors that came in on the angel round had reputable backgrounds in the software and hardware industries, precious metals, telecom, and law - all of whom shared a great and genuine passion for Bitcoin. I began feeling very fortunate to be able to follow this project from such a close perspective. After some days, because of Ravi's high energy and magnetic enthusiasm, the following turned into involvement. When I was invited to come to Austin, Texas to help out, I jumped in with both feet - I've been here for a week now. One thing I noticed when getting involved with CoinTerra more closely, is that the communications part of the equation needed improving. I can understand how the issue came to be. Ravi is in the first place an engineer and a team leader, and he started structuring his company from that same perspective. Even today most of his focus is directed to closely managing all the engineers (in Austin, in Raleigh, and also in India) to make sure that the risks involved are managed to the greatest possible extent. The engineering roots of CoinTerra are also reflected in the initial vision behind the company: to build large and efficient mining data centers, deploy them worldwide, and to then offer cloud hashing services to the public. However, the still uncertain legal repercussions of that lead to a change in strategy. Instead, CoinTerra is now working on providing chips and rigs for the general public, and leaves it for the customers to decide where and how to mine with them. Now, I understand and appreciate how very skeptical a large part of the Bitcoin mining community has become. People have invested a lot of resources in brave but often very inexperienced teams who have not always been able to deliver on their promises. It has been a road of trial and error, and the errors of some have proven painful to many. I can say that I understand what it means to have skin in the game of the mining market; I am an investor in a company that has announced but not released a manufactured product on the market yet. And I stand by it: I think CoinTerra is working on fantastic products and has great future potential as a company. Would I like to make a return on my investment? Of course, that will be the best proof that it fulfills the potential that I see in Ravi and his team. That said, even to just be involved in this technological arms race that is taking place in Bitcoin mining, where hyper competitive capitalism is miraculously creating a very pure public good, is a real privilege. I think the sector will further mature and that we will see more and more reliable companies emerge over time, and all the while the Bitcoin network will grow stronger and stronger. I'm happy to take questions if you are interested. Best wishes, Tuur
Bitcoin Mining 2018 What is bitcoin Mining? Bitcoin mining is a massive network of blocks constantly being solved/opened by the miners. How do i start Mining? Mining is done with computers but i advise highly not to use your bog standard p.c or laptop you need to generate TH's which are Terra hashes which mine the bitcoin. Mining equipment is not on the cheap side but i found a way to rent the equipment! You will have to pay maintenance fees which more a less all mining websites charge. Beginners Mining guide. If you want to try your hand at Mining then i would highly advise you take the route most beginner miners do using cloud mining websites i use Hashflare they have pretty good reviews on google and actually payout! please read there Term and Conditions before continuing to make your free account. Enter this referral code upon registration of HashFlare to get 10% of your first purchase! 4BFC4791 Bitcoin Valuation monitoring Be sure to keep a eye on bitcoins value! this is very important because it will determine your payout rate.. if Bitcoin goes up on the stock exchange so do your profits and vise versa.. Re invest your gains to build more gains If you use cloud mining sites try to re invest your daily profits.. over a few months of re investing your TH's mining rate will triple all on passive! Be careful investing is always a risk I'm not a financial adviser here i offer a way i made my way into the mining game, be sure to you tube it and do your research!
Let me tell you, this last week has been rough as a HODL’er of cryptocurrencies. There were some days when I wanted to give up and sell my miners and move on from the space entirely. However that is not why I got into mining, and not why I continue to mine bitcoin cash to this day. I hope to see bitcoin mining profitability of bitcoin cash mining continue to increase as we recover more from this crash. Today was one of the best days that I have had in a while. When I woke up this morning, I saw that bitcoin cash had broken above the rest of the coins. Which is awesome for guys like me who hold cryptocurrency. My bitcoin cash deposit today: 0.0126 BCH USD if Cashed out Today: ~$16.00 24 Hour TerraHashes: 16.94 My terra-hashes are a little low as I had to move my Avalon 741 This morning, but other than that the profit that I am making mining bitcoin cash is up. It might be short-lived, but it is a good thing today. As you can see in the chart below, my bitcoin cash has been going up every day this week. I’m starting to realize that the profit that I will make from bitcoin cash mining will come from holding these coins as long as I can. What’s been happening? I want to say the most positive thing that I have seen this week is the senate hearing on bitcoin, blockchain, and cryptocurrencies that happened earlier this week. I watched the hearing and overall I thought it was great. The senators were very respectful of the technology and the people in it. Overall, they are going to leave the market untouched and I even heard in a separate interview that the head of the CFTC hoped that cryptocurrencies would regulate themselves. Have you checked out bitmain’s website lately? It seems as though they are hurting for cash; this down turn in the market has been very hard for everyone and I can imagine that their sales have dropped. Bitmain is now selling what is essentially the S7, with a fancy new name for $350. I could see this being a benefit if you were someone who has free power or a situation where power is very cheap. I look forward to bringing another mining update next week and hopefully it will continue to bear good news. Thank you for reading, happy prospecting! Youtube Video: https://youtu.be/tZxxU9EBkww Blog Post: http://www.21stcenturyprospector.com/index.php/2018/02/08/bitcoin-mining-profitability/ Let me know what you guys think and if I should keep posting these updates!
A Nightmare Scenario for Bitcoins This scenario is inspired by the paper “The Economics of Bitcoin Mining, or Bitcoin in the Presence of Adversaries” by Kroll et al. Imagine a company or nation which views Bitcoin as a threat, either to its profits or to its ability to tax an important sector of its economy. Call this entity: Hater Of Bitcoin, or HoB. HoB decides that it will destroy Bitcoin now, rather than waiting to see what damage it will do later. Step 1: HoB spends the money to buy control over the two main producers of state-of-the-art Bitcoin mining machines (right now that seems to be CoinTerra and Kennemar & Cole). Let us say HoB can buy control of both companies for around $100 million dollars. Fine, HoB makes a billion dollars a quarter and has more than $10 billion in the bank, $100 million is not a problem. Step 2: HoB reduces the delivery of all new Bitcoin mining rigs to a trickle, and implements a crash program to produce as many new mining rigs as possible in the next three months. This costs another $50 million. Step 3: As the new mining rigs become available, HoB starts up new mining pools and they each grow to a modest size and then stabilize in computing power - everything seems innocent enough. Step 4: Some months pass and HoB finally has 51% of the computing power of the Bitcoin network, distributed over 5 to 10 modest sized pools. Now, since the pools are secretly under the control of HoB, they work together. Because they have more hashing power than the rest of the world, the HoB pool gets to make double spends. HoB uses this power to rewrite the block chain on a series of high-profile transactions. Step 5: The newspapers are “tipped off” by HoB that someone is doing double spends. Sad anecdotes about businesses who exchanged some valuable items for Bitcoins and then found that the transaction was removed from the block-chain 6 hours later, and they didn’t actually get the Bitcoins they thought they had received, are spread as widely as possible - and its true. Merchants quickly refuse all transactions involving Bitcoins, until the problem is “fixed”. Step 6: The Bitcoin community is thrown into chaos. The realization that the 51% problem is real and facing them right now hits them like a 2x4 to the face, and there are no good solutions. There is no way to wall off the HoB mining pools, if they tried, the HoB pools would just rejoin the “new” Bitcoin network with new names and new IP addresses. And there is no way to change this aspect of the Bitcoin algorithm. The fact that a 51% majority controls future modifications to the block-chain is built into the heart of the code. Step 7: The rational people dump their Bitcoins ASAP. The true believers hang on, hoping that the problem will go away - but HoB is playing for keeps. The true believers will lose essentially everything. Meanwhile the HoB mining pools continue to collect the majority of the new Bitcoins - not that they care - and HoB continues to mess with the block-chain. Most rational Bitcoin miners stop mining because it no longer makes any economic sense and the price is in freefall. HoB rides the Bitcoin jetliner all the way into the ground. Step 8: Six months later, Bitcoin is worth about what it was in 2010, less than a cent per coin. HoB has spent $150 million and destroyed the paper assets of hundreds of thousands of Bitcoin owners. Sure, HoB COULD have spent that $150 million to mine thousands of Bitcoins which would have been worth millions at the pre-attack price, but HoB is looking to protect a current business which is pulling in billions a year. Its not even a close trade-off for HoB’s finance guys. ========== End of Scenario =============== Speaking as an intellectual follower of Robert Nozik and Richard Epstein, I’m sympathetic to the ideas which underlie Bitcoin, but this scenario worries me. What can Bitcoin miners and owners do? Any cryptocurrency based on the SHA-256 proof of work is vulnerable to this super-mining attack thanks, in part, to the fact that ASICs can generate hash values so much faster than normal CPUs and GPUs. It is possible that scrypt based currencies are somewhat less vulnerable but really, its just money. Buy enough computing power and anyone can own 51% and destroy a proof-of-work based currency. Bitcoin and all the clones, with their “most-work-wins” logic cannot avoid this problem. The argument that “this does not make economic sense” - seems rather like the U.S. telling Russia that it doesn’t make economic sense to occupy the Crimea. This argument likely will not stop the Crimea from “joining” Russia in the near-term. https://en.bitcoin.it/wiki/Weaknesses#Attacker_has_a_lot_of_computing_power Note 1: I don’t offer any opinion on the legality of what HoB is doing. If HoB were operating out of Cyprus or Luxembourg, could it do this without fear of legal sanctions? Note 2: If HoB waits and tries to destroy Bitcoin in 2015, at the current exponential growth in network hash power, the cost might be more than $1 billion. Then we move into the territory outlined by Kroll, et al. as to threats and the impact of threats on rational actors. In other words, if Bitcoin isn’t wrecked within the next year, this attack may not be feasible for any save the wealthiest entities on the planet. Link to the Kroll paper: http://www.weis2013.econinfosec.org/papers/KrollDaveyFeltenWEIS2013.pdf Note 3: There are other cryptocurrencies which are less vulnerable to this attack (and yes, I do mean Ripple) but they aren’t Bitcoin.
GPUs will make a comeback to mining, and in doing so, will destroy the security of the Bitcoin network
The reason why Bitcoin is relatively secure right now is because the cost to mine is extraordinarily expensive. Why is it so expensive? Not because of the cost of the silicon, or even really the cost to manufacture, but because the only use of an ASIC is for mining SHA-256 cryptocurrencies such as Bitcoin. When people pay up to $15,000 for an ASIC miner, they're paying for all the time and effort that went into it. But consider this: What if mining machines become multi-purpose? In particular, what if GPUs return to the fore as competitive mining machines? Now I know what you're thinking; you're thinking 'You fool, GPUs will never come close to the efficiency of an ASIC'. But the thing is, they don't need to be. They only need to be cheap, since the purchase cost of an ASIC greatly outweighs its electricity cost. A 'CoinTerra AIRE' ASIC slated for release in March this year will cost $2499 and do 4500 GH/s. Now taking into account a number of factors like electricity cost and rate of value depreciation, I'd estimate that for a $200 GPU to be competative, it needs to do about 225GH/s - an improvement of 375x on current hardware. Impossible you say? Well, the hash rate of nVidia GPUs has improved by ~70-80x in just a few years, without any intentional focus towards Bitcoin: 5.66 MH/s 8600GT to ~414 MH/s GTX 960. The nVidia GTX 780ti is a top of the line card currently priced at $440 and it does 0.5 GH/s, yet an Ati 280X which costs just half the price does at least 0.7 GH/s. Ati cards have always displayed better performance in mining, but why? I'm no expert on the technical details, so I'll only say what can be deduced and is relevant: GPU designs can be altered to increase efficiency/performance when it comes to Bitcoin mining - this is a proven fact from the Ati/nVidia difference! So far, these chipset makers have no doubt been focused on improving gaming performance. But what if they realize that there are many people who will buy more of their GPUs if they have the added benefit of good mining performance, as in 2011? Surely it wouldn't be too difficult or expensive to rearrange things a bit or slap a few things on - If a bunch of amateurs can create ASICs, how difficult could it be for a multi-billion dollar company to improve the hash rate of their GPUs at minimal extra end cost to the consumer? Or what if gaming just naturally tends more towards GPUs having better hash rates? When this happens, Bitcoin will have a security crisis on its hands. There are millions of people with mid or high level graphics cards. In Q1 2014, AMD and NVidia sold a combined 14 million add-in boards. But let's be conservative - let's use the publically available Steam data, which says that yesterday there were a peak 8.3 million concurrent users online. Steam's hardware survey says about 65% of these are not mid or high level cards, so 0.35 x 8.3 mil = 2,905,000 people with decent AMD or nVidia cards who are conscious users (i.e. not office workers) at a certain time of day. For those 2.905 million gamers to launch a concerted and sucessful 51% attack on the network, their GPUs would only need to do on average 57.14 GH/s. If $200 GPUs were to be doing 225 GH/s, the entire number of ASICs throughout the world would be no match! If you want a 'tl;dr' then go listen to Fenton or Shrem egg you on to buy or something - stay in your little dreamland while the price falls like a rock
30 x 24 x 6 x 25 = 108,000 BTC/month to all miners All time high hash rate was 18,058.649 Terra hash/s If one has a 2 Terra hash/s mining rig, then their share of the monthly bitcoin is: (one miner) / (network mining) x (monthly share) (2 / 18058.649) x 108000 2 Terra hash/s earns = 11.96 BTC / month That sound right? EDIT: Formatting
ELI5: To get bigger blocks, do miners using a pool have to upgrade also? i.e. will the fork obsolete some ASICs?
During the last unintentional fork (0.7/0.8) what saved the network and brought back consensus was BTCGuild reverting back to the old .7 version tipping the balance on the network allowing the more "compatible" version to continue. No real action was required by most miners actually running the ASIC hardware. So my question is, because Pool Operators "own" (I use that loosely) the hashing power will they have the ability to let miners keep the existing mining code on the actual ASIC devices doing the work? Or does every running Bitcoin ASIC on the planet need to be able to generate 20mb blocks? With HashFast, CoinTerra, ASICMiner's collapse, etc, and a hodge-podge of mining chips in the wild, there simply will be a portion of the SHA-256 network unable to upgrade code.
I have a few grand to invest in mining. Any advice would be extremely helpful.
I have been GPU mining Scrypt coins for a little bit now, and I'd like to take this to a level beyond just a hobby. I know SHA-256 coins are to a point where one would typically need a very high hash rate ASIC rig. I also know ASIC miners are on the horizon for Scrypt. Granted, any of the options I would want are only on pre-order right now. But I would like to know which direction I should go. Do you folks think I would be better off getting something along the lines of the CoinTerra 2TH/s SHA-256 miner, or the Alpha Technology 25MH/s Scrypt miner? (This is assuming Alpha Technology isn't a scam like some are speculating) I see it this way. SHA-256 based currencies have already been subject to high hash rate mining for a while now, and the difficulties for things like Bitcoin are already sky high. So is the exchange rate on some of them. Scrypt based currency is still less popular, less mined, and have a much lower exchange rate. Yet, some have the potential to grow, once more are mined with higher hash rates of ASIC chips, causing them to also become more popular. Getting in on what I would consider close to the ground floor seems like it may have more benefits than joining in on an already moving train like Bitcoin. Any thoughts and opinions will be greatly appreciated. Thank you all in advance! Edit: Typos
When I decided to write this guide, I was throwing cryptocurrencies around like they were nothing. I was foolish in the fact that I disregarded the exchange fees that are attached with the services that those exchanges provided. I'm in by no means a cryptocurrency genius, and I'm still not extremely seasoned at it, but I've learned enough about cryptocurrencies in the past month that I feel confident to pass on the knowledge I have learned and to help those who are overwhelmed on where to start. So what exactly is a cryptocurrency? According to technopedia (n.d.) a Cryptocurrency is a type of digital currency that is based on cryptography. Cryptocurrency uses cryptography for security, making it difficult to counterfeit. Public and private keys are often used to transfer the currency from one person to another. When mining cryptocurrencies, one important concept needs to be established, and that's hash rate. Hash rate is simply a unit of measurement of processing power. The more your hash rate is, the more profitable mining becomes. This guide uses specific sites and software, chosen by myself, as a great springboard into the cryptocurrency world. These sites and software are extremely flexible, easy to use, and integrate very well together. The mining pools I've chosen are multiple currency pools, designed to consolidate a major of the cryptocurrencies together, and instead of using several mining pools, you use three. These are the things you'll need to get started: MultiMiner Accounts at Coinotron, The Mining Pool Co., and BitMinter Accounts at Cryptsy and Coinbase There are a few different ways to mine for cryptocurrencies, the common of which are using your Central Processing Unit (CPU), Graphics Processing Unit (GPU), and Application Specific Integrated Circuit (ASIC) devices. CPU based mining is not profitable any longer, and will cost you money in the end by increasing electricity costs. GPU based mining is still popular, but losing steam against ASIC based mining. If you choose to use your GPU for mining, AMD/ATI based graphics cards (especially the Radeon HD 79xx series of cards), are the most efficient. If you have an nVidia based graphics card, I'm sorry. You can still mine on nVidia cards, but your hash rates are going to be much slower when compared to their AMD/ATI counterparts. If you chose to use GPU mining, Black Friday or Cyber Monday are you best bets for upgrading your equipment. ASIC based mining is quickly losing value with the changing difficulty on all networks, but it's the most cost effective way to increase your hash rate, and see a positive return on any equipment purchases. If my math is correct, using the methods in this guide, in order for any ASIC device to yield a positive cash flow, you've got to get a device that has at least a 5Gh/s rate (such as the Butterfly Labs Jalapeno). Now for the fun part, explaining how everything in this well greased machine is going to work. Patience plays a big part in the cryptocurrency world, and when I first started, I had none. I was so eager to see the amount of Bitcoin go up, regardless of how much I was getting penalized in fees from trading. So, that's the first step on your journey. PATIENCE. I CANNOT emphasize this enough. Sometimes, you've just got to hurry up and wait, the effects of waiting things out on the cryptocurrency market WILL PAY OFF. Step one of this machine is signing up for all three pools (BitMinter, Coinotron, and Mining Pool Co.). This is so that you can actually get server addresses to plug into MultiMiner, after signing up for these services though, you've still got a ways to go. Step two is sign up for Cryptsy. I chose Cryptsy because of the features they're going to offer at a later time, as well as support for 60 cryptocurrencies (which covers all but one of which we can mine). When your Cryptsy account is setup, you will need to go into the Balances portion of Cryptsy, and find all of the currencies in which you will be mining from the pools. Once Balances are loaded up, you will need to click on the Actions button next to the currency, and click Deposit / Autosell, and then Generate Address. There's a small clipboard near the address it generated, and that will copy the address for pasting in the mining pool websites. You will want to copy, and paste all of them to a text document, along with which currency it belongs to. Not only does this keep you from juggling back and forth trying to figure out things, but it helps for reference and setting up MultiMiner. Once you have those accounts setup, you'll want to sign up for Coinbase. A WORD OF WARNING FOR THOSE WHO ARE PARANOID... Coinbase will want to link to a bank account, this is mandatory if you want to trade your currencies for cash. If you want to trade currencies, just for the sake of trading, then you can skip Coinbase altogether. You can transfer your Bitcoins from Cryptsy straight into Coinbase, and then sell the Bitcoins from Coinbase, and straight into your designated bank account. MultiMiner, oh how amazing you are. For every cryptocurrency available in all pools, you will need to add these coins, along with server addresses, log-ins and passwords. To do so, click on the drop down next to the Settings button, and click Coins. From there, click on Add Coin, and choose each coin from a pool. This will list it in the box to the left, and give you the ability to add information on the right. You can add multiple servers as well, in case the current server you're mining on goes down. After all your coins are setup, you'll need to setup your Strategies. Click the drop down next to Settings, and chose Strategies. Check the Enable Strategies check box, choosing Straight Profitability from the drop down, and checking the Strategy every five minutes (that way you're not losing money by mining something that has dropped in price). This aggressive price checking makes it to where you're always on top with whatever you're mining. Also make sure you have Mine the Single Most Profitable Coin selected. Stick with CoinChoose as your price source (under Settings), as CoinWarz charges for there services beyond a certain point. Click Start, and take a vacation. Reading the charts on Cryptsy can be a little tricky, and scary if you've never saw those types of graphs before. Those graphs are called Candlestick Charts, and are used primarily in the stock market. I won't go in to great detail on this, however, you can find a nice cheat sheet on the subject here. I hope everyone enjoyed the guide, sorry for being punctual and brief, but there isn't anything too elaborate of complicated about searching for cryptocurrencies. I love mining as a hobby, mining's fun, and if there is any money to be made off of mining from my end, great, if not, I had fun mining. While compiling a spreadsheet of the minable currencies in this guide, if everything is set up correctly (and assuming servers aren't down), you should be able to mine the following:
And while Mining Pool Co. offers ASICcoin and Unobtainium, ASICcoin isn't supported in MultiMiner, and Unobtanium isn't supported in Cryptsy. I still mine for Unobtanium in hopes that Cryptsy will include it one day. References Cryptocurrency. (n.d.). In technopedia. Retrieved from http://www.technopedia.com/
[ANN] Massive Data Center in Montreal, Canada Nows Opens for Colocation Hosting of Bitcoin/Cryptocurrency Mining Machines
--- Announcement --- Montreal, Quebec, Canada - CryptoMine, a solutions provider for cryptocurrency miners, today announces the opening of its 22,000 sq. ft. massive data center based in Montreal, Quebec, Canada for colocation hosting of cryptocurrency mining machines. Cryptocurrency mining machines are specifically designed and highly-powerful computers built only for the purpose of performing algorithmic calculations to “mine” cryptocurrencies such as Bitcoin. These machines are essentially industrial-grade and consumes a lot of electricity at the same time generating a high amount of heat. CryptoMine provides miners access to uninterruptable electricity supply at very economical rates. The data center design of intake and exhaust airflow, coupled with forced-air ventilation and superior cooling optimizes mining performance while protecting equipments from excessive heat damage. CryptoMine has a team of experts in the fields of software and network engineering, as well as experienced specialists in Bitcoin mining, and thus being able to offer a full-spectrum of services related to small- and large-scale cryptocurrency mining. CryptoMine aims to provide colocation hosting of mining machines from all hardware manufacturers, including CoinTerra, Black Arrow, HashFast, Butterfly Labs, KnCMiner and Spondoolies Tech. About CryptoMine CryptoMine is founded by a team of software application developers, networking and data center engineers, and Bitcoin miners. CryptoMine helps clients mine cryptocurrencies at maximum profit potential by providing colocation hosting of mining machines at very affordable electricity rates as well as superior cooling for optimized performance. CryptoMine also accepts Bitcoin as payment from clients. Please visit our website at for more information: http://cryptomine.biz Please also find us on social media: Facebook: https://www.facebook.com/CryptoMine Twitter: https://twitter.com/CryptoMineBiz Press Contact: Solomon Freeman or Kevin K. Han Email Address: [email protected]
Bitcoin miner manufacturer TerraHash has told Bitcointalk forum members that it is shuttering its doors. Customers are angry. TerraHash shuts down, bitcoin miners upset with 50% refund This bitcoin mining hardware uses SHA – 256 algorithm with a hash rate of 16 terra hash per second and power consumption of 1,480 W. It uses DM8575 GHS chip that consumes around 0.075 J/GHS of power. It has a dual fan and an Ethernet connection, too. Bitmain Technologies and Canaan Creative have announced new mining rigs that process roughly 58-73 terahash per second (TH/s). Sources also reveal that Canaan’s initial public offering (IPO) could be listed in the U.S. next month. Also Read: Mining Firm Canaan Creative Secures Hundreds of Millions of Dollars in Funding Bitmain and Canaan Introduce Bitcoin Miners […] Bitcoin Mining calculator software displays statistics like the hash rate, speed of your miner, temperature and the fan speed. It is a method to create new bitcoin and add components to an existing block chain. You could be a solo miner- (The mining software connects your Bitcoin Miner to the Blockchain). Yes is is possible. It is very expensive and depending on power costs you may never mine enough to payoff the equipment. I have found the best way to mine is using a cloud mining service. I am using Genesis Mining. I have purchased several contrac...
Bitcoin Mining bitcoin mining 2019 should we mine bitcoin? get answer now
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