60

Go to http://bitminter.com/test and click the "test start" button. If you have Java installed the miner should launch. Click "engine start" on your GPU(s) to start mining and the GUI will show how many bitcoins per day you will make (on average). Note that you are actively mining in a pool without getting paid. This test page launches a version of the miner ...


54

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 ...


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 ...


24

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

Some mining pools have a reward method for which some times are better to mine than others; normally, miners contribute to the pool equally through good and bad times, and their reward averages out to what is statistically expected. Pool-hopping is the practice of mining in a pool only during the good times, and leaving during the bad times; by so doing, a ...


21

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,...


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

AWS is rental of server instances. Servers without GPUs. Bitcoin is not cost effective when mining using CPUs, so nobody has done that analysis for nearly two years because its an obvious money loser and becomes a worse option with each passing day of rising difficulty. Now EC2 (compute cluster) does use GPUs but NVidia GPUs which don't perform at a ...


13

Companies that manufacture mining equipment don't just mine with their own hardware for a variety of reasons: They may not be able to obtain low prices on electricity, making it more profitable for others to mine than for them to mine. They may not be able to make use of the heat generated, making it more profitable for others to mine than for them to mine. ...


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

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 ...


13

Mining is not won by the miner with the "strongest ability to solve the block". Mining is a random process, not a linear stack of work that needs to be powered through. This is because each miner works on different inputs to their block: As everyone is trying to send the block reward to themselves, they are using different Coinbase transactions. Therefore, ...


13

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

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 chance of generating the key of a very rich address is effectively zero. That is, in the entire history of humanity, nobody has come anywhere close to accomplishing such a feat. Let's consider 1 Bitcoin a score. Since there can never be more than 21 million bitcoins or so, you need to hit on one of at most 21 million accounts. Let's say you could try 2 ...


12

It is not guaranteed that purchasing mining equipment will generate in its lifetime more than it cost to purchase. That depends on the future of BTC price and the difficulty, both of which are hard to predict. Those who believe, for whatever reason, that it will indeed be profitable, will purchase devices. But most companies selling mining hardware are in ...


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 ...


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

The biggest counter question is identifying which are 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 in its ...


10

If: D is the current difficulty H is your hash rate in Mhash/s B is block reward in BTC Then you can expect to earn: (H*B/D) * (60*60*24 * 65535 * 10^6 / 2^48) = (H*B/D) * (5.662224e15 / 2^48) BTC per day (1) or roughly: (H*B/D) * 20.11626 BTC per day (2) The current block reward B is a little over 12.5 BTC if ...


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 ...


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