58

Generally, it's not worth your time and effort to mine at home! (Some exceptions may apply.) Age of ASIC mining CPU mining has been unprofitable since 2011, GPU mining just slightly later. Today, ASICs rule mining. The Bitcoin network has more than 1.7 Ehash/s (Oct 2016) now which is 1,700,000,000,000 Mhash/s. Your graphics card will be running full ...


28

A device that consumes N watts of power (and doesn't output electricity or some other form of energy) will eventually produce N joules of heat per second. Thus, if your goal is converting electricity to heat, every piece of hardware that consumes electricity is 100% efficient. It's completely irrelevant what happens with that electricity before it becomes ...


26

A typical USB block erupter will get 333MH/s under realistic conditions. Today, a share is worth about 1/156 of a penny and 333MH/s will get you a share every 13 seconds. That comes out to 43 cents per day per erupter, not counting the cost of electricity. Difficulty is going up, and thus profitability going down, around 25% per month. So you can figure ...


25

There's a factor called Difficulty, the more hashing power exists on the network the more difficulty exists, therefore it's harder to mine coins. Right now The difficulty factor would let you recover your money fast because almost no one has ASIC chips, when they ship in bulk the difficulty factor will rise to 30-120 million during the year. To know by how ...


25

Miners don't charge anyone. Users put aside some amount of satoshis to incentivize a miner to include a transaction in a block, as the miner takes those satoshis if they are successful in mining that block. A miner has the incentive to maximize their own profitability by including the highest paying transactions into their block, and to squeeze as many in ...


23

First a bit of perspective on FPGA mining. ​ Around 2011 some miners started switching from GPUs to FPGAs, (Field Programmable Gate Arrays), after the first implementation of Bitcoin mining came out in Verilog, (a hardware design language that’s used to program FPGAs). The general rationale behind FPGAs is to try to get as close as possible to the ...


18

Check this page: How soon might I expect to generate a block? So with the current difficulty 510,929,738, and a 1Ghash/s mining rig (faster than your CPU) you'd do this math: 510929738 * Math.pow(2,32) / Math.pow(10,9) / 60 / 60 / 24 / 365 So to find a block at this difficulty with a 1Ghash mining rig it would take you about 69 years on average. Good ...


17

Take the total network Th/s and divide by your total Th/s. That number gives you you a number that tells you how many blocks will occur before you get one (on average). So if there is currently 3,666 Th/s on the network, and you have a 0.55 Th/s (like you would if you have a $5,000 KNCMiner Jupiter ASIC), then 3,666/0.55 = 6,665. That means you have 1/6,...


17

Mining is not won by the miner with the "strongest ability to solve the block". Mining is a random progress-free process. Each block candidate independently has a tiny chance to be a valid block. Each miner is working on a separate, non-overlapping block candidate set. Block candidates assign the block reward to their author with an output in the ...


16

I think the simple answer is that a company doesn't have to be a "Bitcoin believer" in order to manufacture Bitcoin mining hardware. The companies that produce ASIC chips also produce other products for other industries. They are perfectly profitable just selling their chips to mining equipment manufactures, and probably don't feel the need to enter the ...


16

Mining: It's a lot of trouble and expensive to set up a proper rig and the return on investment can take a long time when mining. It's not as cheap or profitable to mine the coins as you make it seem. This online calculator: https://www.cryptocompare.com/mining/calculator/btc?HashingPower=12&HashingUnit=TH%2Fs&PowerConsumption=1300&CostPerkWh=0....


14

As long as you're in good communication with the network and have a hashrate measured in something better than minutes per hash, yes, you technically do have a chance of successfully mining a block, even if your hashrate is tiny compared to the whole network. Then the question is, what are your chances and should you do it? I think an analogy with a lottery ...


14

Thanks for asking this question. I see a lot of people all the time who assume GPU mining is profitable. Try googling "bitcoin mining calculator" and see. Presently (in 2015) the calculator will tell you that you would be able to mine one bitcoin in about 1000 to 10 000 years. But you have to consider that there are reward halvings every four years, which ...


13

Not if you don't have one already. The trouble is that you don't know when you'll receive your device and, as @user3418 says, the difficulty will be rising in the meantime. Butterfly Labs (who manufactures the device you're talking about) has only just started delivering devices, and already has a large number of pre-orders. You probably wouldn't receive ...


13

The idea that Lightning will reduce the amount of fees going to miners is very common, and we probably won't know for sure until we actually try it. However, I'll try to provide some arguments as to why I don't believe it'll result in a drop in fees for miners, let alone a drop in hashrate. I think the idea that Lightning will drain transaction fees from ...


12

The average amount of time (in seconds) to find a single share is: difficulty * 2^32 / hashrate In that equation, difficulty is the difficulty of a share and hashrate is your hash rate in hashes per second. A day has 86,400 seconds in it, so the number of shares you'll find in 24 hours is: 86,400 / (difficulty * 2^32 / hashrate) A slightly more complex ...


12

I suspect that it is hard to find real life stories because the miners would like to remain anonymous. If you had a few million dollars in largely untraceable BTC, would you want to publicize your story and make it easy for the government to tax you? But there's some very strong evidence to indicate that "getting rich" was very possible. One story that ...


12

For solo mining with a single GTX 680, which will produce 120 Mhashes/s, you would expect to find one block approximately every 98 years. At the current difficulty, solo mining is inadvisable under practically all circumstances. Pooled mining should be done instead. Furthermore, mining utilizing graphics cards is rapidly losing viability with the release ...


12

The biggest counter question is identifying what constitutes high value transactions. Bitcoin works on an Unspent Transaction Outputs (UTXO) based model rather than an account based model. The input of Bitcoin transaction needs to include outpoint (txid and vout) of the transaction from which you control bitcoins with your keys. This input is then consumed ...


11

Keep in mind that difficulty also evolves over time: the more hashes the network produces, the higher the difficulty becomes. As of this writing the difficulty is 148,819,199. By my computation, each additional 275GH/s rig that joins the network will increase the difficulty by about 40,000; if 4,000 of them are sold, the difficulty will more than double (...


11

Litecoin mining is currently more profitable for likely all GPUs. From the bitcoin and litecoin hardware wikis, you'd get 300-400MH/s for bitcoin mining and 340-470kH/s for litecoin mining if you set it up properly (and there is something VERY fishy about you getting 250MH/s with your CPU, I'd guess it is using your GPU though you don't know it...). For ...


11

It is true that mining Bitcoins like this is impossible. (I can't speak for altcoins though.) Let us run through a back-of-envelope calculation based on some facts and assumptions. Network hash rate is 800 000 terahashes per second as of 2016-01-18 [source]. Remember that currently 25 BTC are rewarded every 10 minutes. A modern consumer-grade CPU has 4 ...


11

The extent of human involvement in mining is to get the software and hardware and then run the software on the hardware. No one actually has to sit at a computer and do anything in mining. They don't even have to come back and check on anything as all aspects of mining are automatic save for computer setup and maintenance.


11

It may be practical to use a miner to provide some of the heat for your home, bringing some miners into your home during the cooler months and moving them elsewhere during summer. It's pretty much 100% efficient at converting electric energy into heat energy. (vs. a heat pump being about 300% efficient1, moving existing heat from outdoors as well). Even a ...


10

No, the fincen guidance you posted has it in plain english that you do not. A miner is simply a user. c. De-Centralized Virtual Currencies A final type of convertible virtual currency activity involves a de-centralized convertible virtual currency (1) that has no central repository and no single administrator, and (2) that persons may obtain by ...


10

Just for fun. Many actions can't be explained from the point of view of logic


9

Unless the lucky winner were to announce his luck, there is no way for anyone to tell the difference. So, even if one cannot find any information suggesting that someone did, it could have happened. Blockchain.info gives the current hashing power as 47,289,554.08 GHash/s, so your chance to mine any one block would be 3/47,289,554.0 = 6.3439e-8. In Germany ...


9

It is of course possible... however it is incredibly unlikely! Mining with a CPU has not been profitable since the earliest days of bitcoin, the expected time to find a block is likely on the order of centuries at this point, and by that time you'll have burned much more in electricity costs than the eventual block reward. So, as an experiment you could ...


9

In addition to the technical factors mentioned by MCCCS, it's important to consider economical factors as well. If the problem being solved has value outside of the Bitcoin network, it allows miners to essentially "double dip" on the rewards - they earn both from the Bitcoin received as block rewards, as well as the incentive structure off chain. ...


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