Getting Started With Bitcoin Mining
You will learn (1) how bitcoin mining works, (2) how to start mining bitcoins, (3) what the best bitcoin mining software is, (4) what the best bitcoin mining hardware is, (5) where to find the best bitcoin mining pools and (6) how to optimize your bitcoin earnings. Bitcoin mining is difficult to do profitably but if you try then this Bitcoin miner is probably a good shot. Before you start mining Bitcoin, it's useful to understand what Bitcoin mining really means. Bitcoin mining is legal and is accomplished by running SHA256 double round hash verification processes in order to validate Bitcoin transactions and provide the requisite security for the public ledger of the Bitcoin network. The speed at which you mine Bitcoins is measured in hashes per second. The Bitcoin network compensates Bitcoin miners for their effort by releasing bitcoin to those who contribute the needed computational power. This comes in the form of both newly issued bitcoins and from the transaction fees included in the transactions validated when mining bitcoins. The more computing power you contribute then the greater your share of the reward. Step 1 - Get The Best Bitcoin Mining Hardware Purchasing Bitcoins - In some cases, you may need to purchase mining hardware with bitcoins. Today, you can purchase most hardware on Amazon . You also may want to check the bitcoin charts . To begin mining bitcoins , you'll need to acquire bitcoin mining hardware. In the early days of bitcoin, it was possible to mine with your computer CPU or high speed video processor card. Today that's no longer possible. Custom Bitcoin ASIC chips offer performance up to 100x the capability of older systems have come to dominate the Bitcoin mining industry. Bitcoin mining with anything less will consume more in electricity tha Continue reading >>
This Is What Happens When Bitcoin Miners Take Over Your Town
The Friday Cover is POLITICO Magazine's email of the week's best, delivered to your inbox every Friday morning. By signing up you agree to receive email newsletters or alerts from POLITICO. You can unsubscribe at any time. Patrick Cavan Brown for Politico Magazine This Is What Happens When Bitcoin Miners Take Over Your Town Eastern Washington had cheap power and tons of space. Then the suitcases of cash started arriving. EAST WENATCHEE, WashingtonHands on the wheel, eyes squinting against the winter sun, Lauren Miehe eases his Land Rover down the main drag and tells me how he used to spot promising sites to build a bitcoin mine, back in 2013, when he was a freshly arrived techie from Seattle and had just discovered this sleepy rural community. The attraction then, as now, was the Columbia River, which we can glimpse a few blocks to our left. Bitcoin miningthe complex process in which computers solve a complicated math puzzle to win a stack of virtual currencyuses an inordinate amount of electricity, and thanks to five hydroelectric dams that straddle this stretch of the river, about three hours east of Seattle, miners could buy that power more cheaply here than anywhere else in the nation. Long before locals had even heard the words cryptocurrency or blockchain, Miehe and his peers realized that this semi-arid agricultural region known as the Mid-Columbia Basin was the best place to mine bitcoin in Americaand maybe the world. The trick, though, was finding a location where you could put all that cheap power to work. You needed an existing building, because in those days, when bitcoin was trading for just a few dollars, no one could afford to build something new. You needed space for a few hundred high-speed computer servers, and also for the heavy-duty cooling system t Continue reading >>
How Does Bitcoin Mining Work?
By Euny Hong | Updated October 17, 2017 — 3:51 PM EDT Cryptocurrency mining is painstaking, expensive, and only sporadically rewarding. Nonetheless, mining has a magnetic draw for many investors interested in cryptocurrency. This may be because entrepreneurial types see mining as pennies from heaven, like California gold prospectors in 1848. And if you are technologically inclined, why not do it? Well, before you invest the time and equipment, read this explainer to see whether mining is really for you. We will focus primarily on Bitcoin. (Related: How Bitcoin Works and our helpful infographic, What is Bitcoin? ) By mining, you can earn cryptocurrency without having to put down money for it. That said, you certainly don't have to be a miner to own crypto. You can also buy crypto using fiat currency (USD, EUR, JPY, etc); you can trade it on an exchange like Bitstamp using other crypto (example: Using Ethereum or NEO to buy Bitcoin); you even can earn it by playing video games or by publishing blogposts on platforms that pay its users in crypto. An example of the latter is Steemit , which is kind of like Medium except that users can reward bloggers by paying them in a proprietary cryptocurrency called Steem. Steem can then be traded elsewhere for Bitcoin. In addition to lining the pockets of miners, mining serves a second and vital purpose: It is the only way to release new cryptocurrency into circulation. In other words, miners are basically "minting" currency. For example, as of the time of writing this piece, there were about 16 million Bitcoin in circulation. Aside from the coins minted via the genesis block (the very first block created by Bitcoin founder Satoshi Nakamoto himself), every single one of those Bitcoin came into being because of min Continue reading >>
Bitcoin (btc) Mining Pool Minergate
Username: either email address or userID.workerID format could be used. userID could be found in your profile settings workerID is to be set by yourself, could be omitted. Password: optional To join MinerGate BTC Mining Pool you need a username (either email address or userID.workerID) and password. To receive userID please pass a short registration or log in. Buy hashing power contracts through Nicehash and mine with us. If you need assistance in connecting your cloud-based ASIC machines, please reach our support at [email protected] MinerGate uses PPLNS reward method on Bitcoin mining pool. The confirmed pool fee is 1%. No additional fees are applied for withdrawals. The MinerGate team introduced a new solution the dynamic difficulty change an algorithm of the computational complexity adjustment to help get the maximum from your SHA-256 mining hardware. Account data and coins are well-secured with e-mail confirmation and two-factor authorization. Youll be the only person to have access to your mined Bitcoins. Pooled mining of Bitcoin requires a professional approach. The pools infrastructure is based on highly secured pool servers located in Europe, China and US, providing 24/7 availability and 99.9% working uptime. Were constantly looking for professional miners to join our pool. If you know someone who has large SHA-256 hashing power and eager to mine Bitcoin, we have an exclusive offer for both of you. Contact us via [email protected] Solo mining requires enormous hashrate to find a block Bitcoin solo-mining becomes more and more difficult, even if you have some rented hashrates or several ASICs working simultaneously. The reward is the highest among other cryptocurrencies, despite the high computational difficulty. So itll take almost a year with 1 PH/s Continue reading >>
Bitcoin Mining News - Cointelegraph
Bitcoin mining is the process by which new bitcoins are created and transactions are sent across the network. Both the people who engage in it and the devices that are used for mining are called "miners". In the process of mining, the miners' computers perform the so-called "hashing", producing proof-of-work - they take a series of randomly generated input data strings and apply a specific cryptographic function to it (SHA-256 in Bitcoin's case). The result of each calculation will always be the same "hash", unique to any particular input, but its exact value cannot be predicted until the actual calculation is performed. The network has an overall "target" value, and as soon as any miner gets a hash which is equal to or lower than the target, they get to register all the transactions which took place on the network since the last "hit", package them into a block, add it to the end of the Blockchain, and credit a specific amount of bitcoins to their own account (these bitcoins are created "out of nothing" to reward the miner for the time and electricity they spent on cracking hashes). Initially, any person could use their PC to download a Bitcoin client and start mining bitcoins. They still can, but by now it is economically infeasible, as the mining industry is dominated by ASICs - highly efficient machines developed specifically for the purpose of mining Bitcoin. Continue reading >>
How Bitcoin Mining Works - The Economist Explains
AS THE bitcoin price continues to fall, sceptics have started to wonder what will happen to the industry underpinning this digital crypto-currency . Around the world, hundreds of thousands of specialised computers have been built to create (or mine) bitcoins and, in the process, validate transactions and protect the system. How does bitcoin mining work? The aim of bitcoinas envisaged by Satoshi Nakamoto, its elusive creatoris to provide a way to exchange tokens of value online without having to rely on centralised intermediaries, such as banks. Instead the necessary record-keeping is decentralised into a blockchain, an ever-expanding ledger that holds the transaction history of all bitcoins in circulation, and lives on the thousands of machines on the bitcoin network.But if there is no central authority, who decides which transactions are valid and should be added to the blockchain? And how is it possible to ensure that the system cannot be gamed, for example by spending the same bitcoin twice? The answer is mining. Every ten minutes or so mining computers collect a few hundred pending bitcoin transactions (a block) and turn them into a mathematical puzzle. The first miner to find the solution announces it to others on the network. The other miners then check whether the sender of the funds has the right to spend the money, and whether the solution to the puzzle is correct. If enough of them grant their approval, the block is cryptographically added to the ledger and the miners move on to the next set of transactions (hence the term blockchain). The miner who found the solution gets 25 bitcoins as a reward, but only after another 99 blocks have been added to the ledger. All this gives miners an incentive to participate in the system and validate transactions. Forcing m Continue reading >>
The Magic Of Mining - Bitcoin
A HUGE aircraft hangar in Boden, in northern Sweden, big enough to hold a dozen helicopters, is now packed with computers45,000 of them, each with a whirring fan to stop it overheating. The machines (pictured) work ceaselessly, trying to solve fiendishly difficult mathematical puzzles. The solutions are, in themselves, unimportant. Yet by solving the puzzles, the computers earn their owners a reward in bitcoin, a digital crypto-currency. The machines in Boden are in competition with hundreds of thousands more worldwide. The first to solve a puzzle earns 25 bitcoins, currently worth $6,900. Since bitcoins invention in 2008 by a mysterious figure calling himself Satoshi Nakamoto, people have increasingly traded it for real money, albeit at a wildly varying price (see chart). Although there are only $3.8 billion-worth of them in circulationabout twice the value of Paraguayan guaranes in usebitcoins have three useful qualities in a currency: they are hard to earn, limited in supply and easy to verify. But stability is important too: just over a year ago a bitcoin was worth four times as many dollars as now. But then Mt Gox, the crypto-currencys biggest exchange, collapsed and the bitcoin bubble burst. Critics make comparisons with 17th-century tulip mania, and predict that bitcoin mania will fizzle out in similar fashion. On January 5th Bitstamp, another bitcoin exchange, halted operations and reported that 19,000 of the currency units had vanished in an apparent hacking attack. The price collapse and the exchanges woes do not tell the whole story, though: increasing numbers of businesses are accepting payment in bitcoin, including Time Inc and Microsoft; and whatever the fate of bitcoin, the technology may spawn a range of alternative crypto-currencies and provide the bas Continue reading >>
China's 2nd Largest Bitcoin Mining Hardware Producer Plans To Launch $1 Bln Ipo In Hong Kong
China's 2nd Largest Bitcoin Mining Hardware Producer Plans To Launch $1 Bln IPO In Hong Kong Chinas second-largest BTC mining hardware maker plans to list a $1 bln IPO on the Hong Kong Stock Exchange, local media reports. Canaan Creative, Chinas second-largest Bitcoin (BTC) mining hardware manufacturer plans to seek an Initial Public Offering (IPO) on the Hong Kong Stock Exchange. The companys decision to conduct an IPO in Hong Kong, instead of in the US, was reported by South China Morning Post (SCMP) Wednesday, May 9. If successful, the company would reportedly be the first ever blockchain-related company to be listed on the citys markets, SCMP states further. Sources familiar with the matter, who asked to remain unidentified because Canaans listings plans have not yet been made public, told SCMP that the company is seeking to raise $1 bln for its IPO, and that it had previously been considering both Hong Kong and US markets. According to SCMP, in 2016, Canaan had sought to list an IPO on Chinas yuan-denominated A-share market, but the attempt fell through after regulators contested the deals proposed valuation. In 2017, the company again attempted a listing on Chinas New Third Board market, which again fell through, even though the market targets startups and is relatively less stringently regulated. Canaan Creative is based in the eastern Chinese city of Hangzhou, and the company released unaudited results in January that showed a 600-fold increase in its annual net income of 410 mln yuan ($64 mln) in 2017. SCMP states that the majority of Canaans clients come from China, a country that has long been a crypto mining superpower due to its cheap electricity supply. In 2017, China was reported to have filed the most patent filings for blockchain technology of any coun Continue reading >>
Bitcoin Mining Bitcoin.com
Bitcoin cloud mining can be a tricky thing to determine if its completely safe in the Bitcoin world, and if it is, will it be cost effective? The return on your investment can be longer than other alternatives such as buying and selling Bitcoin. This can be due to the fees involved, the time it takes to mine, the upfront costs and the value of Bitcoin during that time. The upside is that if the costs are reasonable, the cloud mining operation has good rewards and the price of Bitcoin rises, you will more than likely end up making a healthy return on your investment. Your first task is to find a reputable cloud mining provider. One of the best ways to make sure you have a reputable service is to look on industry news sites, forums, and reddit sub-forums to check out lists of cloud services and customer feedback on them. Continue Reading Bitcoin mining profitability is something that is always in flux. With Bitcoin having such a high difficulty and large total hashrate, at times profitability can come down to several things. The first set of data you will want to use for discovering if Bitcoin mining can be profitable for you or not is the following but not limited to: cost of Bitcoin ASIC miner(s), cost of electricity to power miner (how much you are charged per kwh), cost of equipment to run the miner(s), cost of PSU (power supply unit), cost of network gear, cost of internet access, costs of other supporting gear like shelving, racks, cables, etc., cost of building or data center if applicable. Continue Reading Bitcoin mining is competitive and the goal is that you want to solve or find a block before anyone elses miner does. Then you will get the block reward and transaction fees from the block. During the last several years we have seen an incredible amount of hashr Continue reading >>
What Is Bitcoin Mining?
Jordan Tuwiner Last updated June 28, 2017 If mining sounds like a process which extracts value from Bitcoin, nothing could be further from the truth! Miners are the backbone of the Bitcoin network: Without miners, the network would collapse and lose all value. The role of miners is to secure the network and to process every Bitcoin transaction. Miners achieve this by solving a computational problem which allows them to chain together blocks of transactions (hence Bitcoins famous blockchain). For this service, miners are rewarded with newly-created Bitcoins and transaction fees. To understand mining, its first necessary to understand the Bitcoin blockchain. All Bitcoin transactions are recorded in the blockchain, in a linear, time-stamped series of bundled transactions known as blocks. The blockchain is essentially a public ledger, which is freely shared, continually updated and under no central control. Certain orthodox economists have criticized mining as wasteful. It must be kept in mind however that this electricity is expended on useful work: Enabling a monetary network worth billions (and potentially trillions) of dollars! Compared to the carbon emissions from just the cars of PayPals employees as they commute to work, Bitcoins environmental impact is negligible. As Bitcoin could easily replace PayPal, credit card companies, banks and the bureaucrats who regulate them all, it begs the question: Not just of electricity, but of money, time and human resources! If only 21 million Bitcoins will ever be created, why has the issuance of Bitcoin not accelerated with the rising power of mining hardware? Issuance is regulated by Difficulty, an algorithm which adjusts the difficulty of the Proof of Work problem in accordance with how quickly blocks are solved within a certa Continue reading >>
Cnbc Explains: How To Mine Bitcoins On Your Own
CNBC Explains: How to mine bitcoins on your own Bitcoins act like cash, but they are mined like gold. So how does someone get into the current bitcoin rush? If properly done and willing to take the investment risk, you could wind up with a few bitcoins of your ownwhich currently have an average weekly price of $945 on the largest bitcoin exchange. When the algorithm was created under the pseudonym Satoshi Nakamotowhich in Japanese is as common a name as Steve Smiththe individual(s) set a finite limit on the number of bitcoins that will ever exist: 21 million. Currently, more than 12 million are in circulation. That means that a little less than 9 million bitcoins are waiting to be discovered. Since 2009, the number of bitcoins mined has skyrocketed. That's the way the system was set upeasy to mine in the beginning, and harder as we approach that 21 millionth bitcoin. At the current rate of creation, the final bitcoin will be mined in the year 2140. There are three primary ways to obtain bitcoins: buying on an exchange, accepting them for goods and services, and mining new ones. "Mining" is lingo for the discovery of new bitcoinsjust like finding gold. In reality, it's simply the verification of bitcoin transactions. For example, Eric buys a TV from Nicole with a bitcoin. In order to make sure his bitcoin is a genuine bitcoin, miners begin to verify the transaction. It's not just one transaction individuals are trying to verify; it's many. All the transactions are gathered into boxes with a virtual padlock on themcalled "block chains." Miners run software to find the key that will open that padlock. Once their computer finds it, the box pops open and the transactions are verified. For finding that "needle in a haystack" key, the miner gets a reward of 25 newly generated Continue reading >>
How To Set Up A Bitcoin Miner - Coindesk
There are three main categories of bitcoin mining hardware, each more expensive and more powerful than the last. This guide to setting up a bitcoin miner explains each of them, and talks about how to make them work. By this stage, you will understand how bitcoin works , and what mining means. But we need to get from theory to practice. How can you set up a bitcoin mining hardware and start generating some digital cash? The first thing youre going to need to do is decide on your hardware, and there are two main things to think about when choosing it: This is the number of calculations that your hardware can perform every second as it tries to crack the mathematical problem we described in our mining section. Hash rates are measured in megahashes, gigahashes, and terahashes per second (MH/sec, GH/sec, and TH/sec. The higher your hash rate (compared to the current average hash rate), the more likely you are to solve a transaction block. The bitcoin wikis mining hardware comparison page is a good place to go for rough information on hash rates for different hardware. All this computing power chews up electricity, and that costs money. Its worth looking at your hardwares energy consumption in watts, when making your choice. You want to make sure that you dont end up spending all of your money on electricity to mine coins that wont be worth what you paid. Use these two factors to work out how many hashes youre getting for every watt of electricity that you use. To do this, divide the hash count by the number of watts. For example, if you have a 500 GH/sec device, and its taking 400 watts of power, then youre getting 1.25 GH/sec per watt. You can check your power bill or use an electricity price calculator online to find out how much that means in hard cash. However, theres a Continue reading >>
How To Get Started With Bitcoin Mining.
Before you read further, please understand that most bitcoin users don't mine! But if you do then this Bitcoin miner is probably the best deal. Bitcoin mining for profit is very competitive and volatility in the Bitcoin price makes it difficult to realize monetary gains without also speculating on the price. Mining makes sense if you plan to do it for fun, to learn or to support the security of Bitcoin and do not care if you make a profit. If you have access to large amounts of cheap electricity and the ability to manage a large installation and business, you can mine for a profit. If you want to get bitcoins based on a fixed amount of mining power, but you don't want to run the actual hardware yourself, you can purchase a mining contract. Another tool many people like to buy is a Bitcoin debit card which enables people to load a debit card with funds via bitcoins. Bitcoin mining is a lot like a giant lottery where you compete with your mining hardware with everyone on the network to earn bitcoins. Faster Bitcoin mining hardware is able to attempt more tries per second to win this lottery while the Bitcoin network itself adjusts roughly every two weeks to keep the rate of finding a winning block hash to every ten minutes. In the big picture, Bitcoin mining secures transactions that are recorded in Bitcon's public ledger, the block chain. By conducting a random lottery where electricity and specialized equipment are the price of admission, the cost to disrupt the Bitcoin network scales with the amount of hashing power that is being spent by all mining participants. During mining, your Bitcoin mining hardware runs a cryptographic hashing function (two rounds of SHA256) on what is called a block header . For each new hash that is tried, the mining software will use a diff Continue reading >>
What Is Bitcoin Mining?
One of the fundamental questions many people have about Bitcoin revolves around the tokens themselves. Questions about its value, security and history, all eventually lead to one place: Where do bitcoins come from? While traditional money is created through (central) banks, bitcoins are mined by Bitcoin miners: network participants that perform extra tasks. Specifically, they chronologically order transactions by including them in the Bitcoin blocks they find. This prevents a user from spending the same bitcoin twice; it solves the double spend problem. Skipping over the technical details, finding a block most closely resembles a type of network lottery. For each attempt to try and find a new block, which is basically a random guess for a lucky number, a miner has to spend a tiny amount of energy. Most of the attempts fail and a miner will have wasted that energy. Only once about every ten minutes will a miner somewhere succeed and thus add a new block to the blockchain. This also means that any time a miner finds a valid block, it must have statistically burned much more energy for all the failed attempts. This proof of work is at the heart of Bitcoins success. For one, proof of work prevents miners from creating bitcoins out of thin air: they must burn real energy to earn them. And two, proof of work ossifies Bitcoins history. If an attacker were to try and change a transaction that happened in the past, that attacker would have to redo all of the work that has been done since to catch up and establish the longest chain. This is practically impossible and is why miners are said to secure the Bitcoin network. In exchange for securing the network, and as the lottery price that serves as an incentive for burning this energy, each new block includes a special transaction Continue reading >>
Bad News For Bitcoin Miners: It's No Longer Profitable To Create The Cryptocurrency, By Some Estimates
Bitcoin has dropped to a point where it's not that profitable to produce, according to some estimates. "Bitcoin currently trades essentially at the break-even cost of mining a bitcoin, currently at $8,038 based on a mining model developed by our data science team," Fundstrat's Thomas Lee said in a report Thursday. Fundstrat's model incorporates three factors: the cost of equipment, electricity and other overhead such as maintaining cooling facilities. The cryptocurrency traded mildly lower, near $8,000, Thursday, according to CoinDesk's bitcoin price index, which tracks prices from four major global exchanges. Earlier, bitcoin hit a low of $7,676.52, its lowest since Feb. 8, according to CoinDesk data. Bitcoin is created through an energy-intensive "mining" process that uses high computing power to solve a complex mathematical equation, proving an anonymous miner used the process the network agreed upon to build the blockchain record of transactions. Miners then get bitcoin in reward for successfully completing the equation. If the cost to create bitcoin exceeds the reward, miners theoretically lose incentive. "In some cases the miners may simply turn off the machines until the price comes back a bit," said Shone Anstey, co-founder and president of Blockchain Intelligence Group. "It's got to be getting to the point that some of them may be losing money." Bitcoin mining today requires custom hardware that can cost several hundred to a few thousand dollars. And like much technology, more efficient equipment is always coming out. In fact, the need to regularly replace equipment accounts for more than half the cost of mining, according to Fundstrat's model, said Sam Doctor, head of quantitative data science. He assumes electricity costs of 6 cents per kilowatt hour and oth Continue reading >>