60

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

Every time I have asked Bitcoin experts about buying a "cloud mining" account, that is, paying fiat money to a company for them to mine Bitcoin for me, I get the response that it's a scam. Most of them are scams because it's almost impossible to verify that your money is used for mining. You need to trust a company that can do anything with the ...


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 ...


19

The difference is that with cloud mining, all you are doing is lending the company money. And you are expecting them, for no rational reason, to pay you back an interest rate higher than they would have to pay if they took out the worst loans in existence. In the case of cloud mining, literally everything is done by the company. All they are doing is ...


18

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,...


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 ...


18

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

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

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

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


10

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 ...


10

You cannot know how many hashes were actually performed for every block, because non-winning hashes aren't published. There is however a simple formula to compute the expected number of hashes a block needs. Across many blocks of the same difficulty, that expected number is the average of the number of hashes per block. The formula is almost exactly: ...


9

There are memory intensive mining algorithms, but usually the "memory" being discussed is not of the DDR3 variety. That 64 GB of DDR3 RAM you have is an excellent resource for many computing tasks (and enough to make me jealous), but is also dramatically slower than the L1 and L2 cache physically on the chip with your CPU. This is the memory we're talking ...


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

Laptop mining worked well in 2009. It is no longer 2009. Your integrated Intel GPU has the speed of a CPU, not a fast gaming GPU. Even in 2011 when CPU mining was dying and people mined on GPUs your GPU would be too slow. Yes, "even" people with 100 MH/s can't mine anymore. That's because 1000x that speed (100 GH/s) is slow at this point. 1 TH/s (1 000 000 ...


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. ...


9

There's a couple of reasons I can think of: They might not think mining is profitable and are simply looking to sell hardware and treat BTC miners as a good target market, media attention probably means there's a lot of naive users that believe they can make huge profits by mining themselves. Once you scale up mining beyond a certain limit there can be ...


Only top voted, non community-wiki answers of a minimum length are eligible