Mining bitcoins and other cryptocurrencies

()

Mining bitcoins

Surely almost everyone who is just starting to get acquainted with bitcoin wants to get it on their own computer, and not buy cryptocurrencies on the stock exchange or something else. We hasten to upset you: today it is already unrealistic. Two or three years ago it was possible, but then large investors saw the huge potential for profit from mining bitcoins and invested large sums in the development of specialized chips.

This led to the emergence of specialized devices called ASICs (abbreviation for the English application-specific integrated circuit, integrated circuit for special purposes), intended exclusively for cryptocurrency mining. The speed of mining bitcoins using ASIC has increased hundreds of times, when compared with conventional home computers. Due to the growth in the power of the bitcoin network, the complexity of cryptocurrency mining has increased, after which it has become impossible to do this on a stationary computer.

Do not be upset

Due to the fact that Bitcoin is open source, independent developers have begun to launch many alternative cryptocurrencies for a variety of purposes. Such cryptocurrencies are commonly called forks or altcoins. The developers, creating their cryptocurrencies, pursued different goals, so the forks and altcoins came out different. Some, for example, allow you to get more coins or provide a higher transfer speed. So, the third most popular cryptocurrency – litecoin – is also a fork of bitcoin.

So what’s the point? It’s simple: due to the fact that ASIC chips are released only for a specialized cryptocurrency mining encryption algorithm, such as SHA-256 (bitcoin) and SCRYPT (lightcoin), some independent developers released their cryptocurrencies with a different algorithm for which ASIC devices Does not exist. This is done so that the network capacity, and therefore the complexity of altcoin mining, does not grow to enormous values. Such cryptocurrencies can be mined on conventional computers, and we will figure out how to do this and how many coins can be obtained.

Bitcoin mining is not for us, but there are other cryptocurrencies

So, what is needed for cryptocurrency mining and what, in fact, will we mine? The instruction in several stages:

  • Choosing a cryptocurrency for mining
  • Choosing a mining pool
  • We choose programs for mining
  • Set up and run mining programs
  • We withdraw the extracted coins to our wallet or to the exchange wallet

The choice of cryptocurrency for mining

The mining speed of any cryptocurrency, including bitcoin, is measured in hashes per second. At the time of writing, the actual unit for measuring mining speed is kh / s (kiloheshes per second). You and I need to find out how many kh / s our computer can issue. Mining speed depends on the characteristics of your video card. For example, take the NVIDIA GTX 580, the average mining speed at which will be 220 kh / s. You can see what speed your video card will give out at this link.

How to understand which cryptocurrency is best to mine today? Two popular sites will help us with this: coinwarz and whattomine, where we will see summary tables of all existing cryptocurrencies that can be mined, as well as mining algorithms.

For us, important indicators are Revenue / Profit (per day), which means “reward / profit (per day)”, and the Exchange Volume column, which means the amount of coins that we can sell on the exchange at such a price to get exactly that The profit that is visible in the Revenue / Profit (per day) column. We advise you to change the extracted coins to Bitcoins once a day so as not to lose profit, if suddenly the price of the altcoin goes down (and this happens quite often).

How useful was this post?

Click on a star to rate it!

Average rating / 5. Vote count:

No votes so far! Be the first to rate this post.

Leave a Reply

Your email address will not be published. Required fields are marked *