Mining Bitcoin and other cryptocurrencies has become very popular.
As more and more begin to mine for cryptocurrency, it becomes harder and harder to successfully mine a bitcoin, litecoin, or any other form of cryptocurrency.
This is why you need to START MINING NOW!
Top 6 Most Popular Cryptocurrencies:
Unlike bitcoin, Zcash gives the user the option to encrypt the transaction.
This means that the sender address, recipient address, and the amount sent is hidden from public view.
Many would consider Zcash the future of anonymous transaction.
NOTE: There will only ever be 21 million coins, so start mining NOW!
Monero is focused on fungibility and the privacy of its users. With the value steadily increasing, it may be time to consider investing in Monero mining hardware.
Dash is the first form of digital cash that works like physical cash.
You hold your own money, maintaining full control. You maintain total privacy, and your transactions can’t be tracked.
Furthermore, transactions are instantaneous.
Fees are virtually non-exisistent, as you control your own money.
Litecoin is a decentralized cryptocurrency. There is a finite amount in existence, only 84 million.
It has low transaction fees and fast transaction times. It can be bought and sold among other people, and through exchanges.
Lastly, it can be spent on almost anything.
Ethereum is a platform specifically designed for people to build decentralized applications.
Ethereum has become extremely valuable in the past month, rendering it a great choice for beginner miners.
It allows for peer-to-peer messaging, and a generalized blockchain.
The blockchain has a built in programming language. This allows people to use the blockchain for any kind of decentralized application.
It is online, and cryptographically secure.
In today’s economy, every transaction we make must go through a bank or credit card company.
They take a cut of the transaction, and we must believe that they won’t make a mistake.
That’s where bitcoin comes in.
At the heart of bitcoin, there is a mathematical problem. Miners solve these problems.
Every time a solution is acquired the reward is given as a bitcoin.
Bitcoin, like other cryptocurrencies, is mined with powerful graphics cards.
Crypto Mining Guide
This guide will teach you the basics of mining for cryptocurrencies.
These are the 3 MOST important parts of a cryptocurrency mining PC:
- The Graphics Card
- The Motherboard
- The Power Supply
Here’s the deal:
Originally, the CPU was used to mine for cryptocurrencies.
However, very early on, miners discovered that the CPU was not very efficient for mining.
In fact, it was virtually useless.
The graphics card is used for solving the complex algorithms that form cryptocurrency.
How Mining Works
Cryptocurrencies consist of blocks of transaction. This is known as the blockchain.Each time a transaction takes place, the public blockchain is updated.
Miners put the transaction through a process in which they take the information and apply a formula to it. The end result is a sequence of letters and numbers that is far shorter than the original transaction. This is called a hash.
Each hash is a version of the hash used before it. Since each hash is based on the one prior, the next hash confirms the previous hash is legitimate.
For each block, miners use computers, more specifically GPUs to guess answers to a puzzle. When the answer is find, a coin is received as a reward.
The miners use unique header metadata through a hash function. When a valid hash is found, it is sent through the network and added to the public ledger.
There’s no way to cheat the system and fake the work, which is why the method used for all cryptocurrencies as of today is called “proof of work”. Ethereum is revolutionary in that it is trying to move away from proof-of-work and intead use “proof of stake” (see our guide on Ethereum Mining).
With this method, miners validate the hashes on the network, and they are rewarded with coins.
Importance of a Powerful and Efficient GPU
Considering the information above, the importance of a powerful GPU is clear. The more powerful your GPU is, the faster you’ll successfully mine coins.
However, powerful cards tend to use lots of electricity. That’s why the efficiency of a card is equally important to consider.
With the difficulty of mining increasing each day, an efficient GPU is critical. Some GPUs cost more in electricity than they generate in revenue. You can find efficient mining GPUs with the guides above.
Factors that Affect the Efficiency of your GPU
You can’t mine with any old graphics card.
There are important stats to be considered including:
MHash/s is equal to the amount of number-crunching the card can do while mining. If your hash rate is high, you’ll go through hashes faster than if your hash rate was low.
What does this mean for you?
A higher hash rate equals faster results.
MHash/j is the amount of hashes the card can process per joule of energy. If you didn’t already know, mining uses a lot of electricity. It is important that your graphics card can mine enough for you to make a profit after you’ve paid your electricity bill.
A higher number means your card is more power efficient. If your card is more power efficient, you’ll save money on electricity. I’m sure you see where this is going.
MHash/s/$ is basically a way for you to see the price to performance ratio of the card. If the number is higher, it means you are getting more for your money. A card that uses too much electricity with a low hash rate won’t generate much revenue, if any at all.
It is important to make sure you find a card with a good balance of these stats for the right price.
Mining for cryptocurrency, including bitcoin, litecoin, and ethereum, requires a powerful graphics card.
Actually, it requires multiple powerful graphics cards. Consequently, you will also need a motherboard with enough PCI slots to house these graphics cards.
Lastly, using the right power supply is crucial. If your mining rig is not provided sufficient power, it will short out.
Is Mining The Right Choice for You?
Mining may sound like a great idea. Just get a mining GPU, and let the profits roll in.
- Top 6 Most Popular Cryptocurrencies:
- Crypto Mining Guide
- How Mining Works
- Importance of a Powerful and Efficient GPU
- Factors that Affect the Efficiency of your GPU
- Is Mining The Right Choice for You?
There are huge mining warehouses in countries with extremely low electricity cost. These warehouses have thousands of mining GPUs, and cost hundreds of thousands if not millions of dollars.
On such a huge scale, mining is extremely profitable and the investors are making lots of money. However, when mining with one or two GPUs in your house, you might not see a great return on your investment, if anything at all.
Mining still has its benefits. Some miners are doing so as a hobby that pays them something in return. However, unless you’re doing it on a large scale, you probably won’t see much profit. If you just want cryptcurrency, we recommend you buy them.