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  • [How To] Bitcoin Mining

    Discussion in 'Bitcoin Forum' started by bossland, Feb 8, 2012.

    1. razer

      razer New Member

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      I have just started to look at bitcoin, I work away at the mines and was thinking of buying 2 ASIC device's $3000 each wondering if I should invest into bitcoin or not. Is it worth it, will I get my money back. I want them to run while I am away working. I always wanted something to invest my money into.
       
    2. Karsh

      Karsh New Member

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      nevermind
       
    3. toliman

      toliman Member

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      TLDR answer: bitcoin mining sucks at the moment.

      if you want to invest, find a sharemarket for BTC, like and buy fractional dividends or original stocks (very little real difference to most people, except for voting rights & permissions)
      or buy a block of BTC and keep it around for a while in the hope that it will increase in $USD value.

      So, long answer,

      there are a few calculators for working out how much an ASIC purchased now, or rather, delivered now, or in 3-6 months will produce.

      Given the current growth rate in ASICs into the network, and the jump from 8 million in what, may, to 37 million in july, to the current guesstimate of 44 million to ~49.4 to ~51 million in the next jump in a few days, it's leapt past the speculated, and into the problematic.

      this image is the one to keep an eye on ... the growth rate per day at http://bitcoin.sipa.be/growth-small.png
      growth-small.png

      it indicates that the daily growth at the moment is past 1% per day, and up to 1.5% a day.
      overall, it's not a good rate of change for investment, because the bubble has not stopped rising, it has to dip below 1% per day for solo miners to even be on parity with the manufacturing growth rates.
      i.e. here is a picture of this "bubble"

      http://bitcoin.sipa.be/speed-small-lin-10k.png
      speed-small-lin-10k.png

      for pure investment, it's great, because the value will remain, largely due to people who are in contracts/shareholding arrangements, i.e. large mining consortiums, will necessarily have to drive the difficulty up, in an effort to secure percentages of income,
      those are perhaps the only people who will do well out of a constant growth rate.

      regular solo mining is somewhat obviously going to suck, because of the consolidation of power in ASIC manufacturing and distribution, only the heavy investors will get much out of trying to compete with manufacturing more chips, faster than the competition who are also sinking funds into producing better ASIC hardware.

      places like asicminer who are selling shares for 1btc to 4btc each, give their divisional income to the shareholders at about 0.02/share ($100 to $400 a share, $2/week return per share)

      here's an optimistic breakdown of a miner's throughput, over 6 weeks.
      http://76.30.176.63:81/btc_calc.php
      and a pessimistic one ...
      Bitcoin Mining Calculator ? Coinish

      essentially, Based on a 20% difficulty change projection, all the ASIC mining rigs will generate 400% of its current difficulty income during its lifespan. perhaps 500%.

      This means, if you have a 25Gh device, and start to hash when it's a greater percentage of the global hash rate (currently ~395,925gh/s ... a *low* percentage) , you will make 4 BTC until the next few jumps, and 20 coins during its lifespan, so any purchase price higher than 20 BTC will never meet a ROI. If the device arrived after one month, it will only generate 10 coins during its lifespan

      the general expectation is, the 10% growth rate in hardware is unsustainable, but 20% .. may end up being the reality once KnC or Avalon or ASICMiner produces new generations of hardware. the problem is, it's probably quite sustainable. and with new ASIC production in the works, it will boost faster than the 11% speculated. which would mean that the only quite profitable margin would be 50gh/100gh as a baseline, to be doubled every 6 months.

      this page has a regularly updated table with all of the ASIC hardware, potential and delivered, and on order, ranked by their price and return rate.
      Bitcoin Mining Equipment Table - Decentralized Hashing

      (right click to open image in new tab if it's hard to read)
       
    4. whatcha413

      whatcha413 Member

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      You will get the money faster by pan handling lol
       
    5. whatcha413

      whatcha413 Member

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      The rule of thumb. The more people that do something that produces money. The Less Everyone else makes. Look at Botting in wow for example. Used to be worth a Lot of money for 1k gold. But now that everyone and there mom bots its worth 60 cents per thousand. Same goes for College Degrees. More people that have the degree the less it is worth. The more suckers they find the cheaper they will pay. so if you ever find ways to make money keep it to yourself and bring it to your grave :)
       
    6. ctomkinson

      ctomkinson Member

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      SO how do you tell if your using gpu or cpu? I m using a powerfull MAC intel 2011 model i have a AMD Radeon HD 6750M 512 MB.
      my pocessor is 2.5 Ghz intel core i5.
      i get about 62 Mhps.
       
    7. frex

      frex Member

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      Forget to mine with you Mac, for bitcoin mining the new "standard" is in ghps. With 62Mhps you win +- $0.68 by month.
       
    8. ctomkinson

      ctomkinson Member

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      i got it set up on another computer, a mac and its getting 145mhps. The GPU is a ATI Radeon HD 6970M.
      I dont understand what you are saying
       
    9. toliman

      toliman Member

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      You can try using alternative bitcoin networks, which produces different "coins".

      Litecoin is one of many different bitcoin - alternative methods and networks, that can be made using video card GPU's, instead of expensive ASIC or FPGA computer hardware that just makes bitcoins.
       
    10. CHEATGOD

      CHEATGOD New Member

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      Bitcoin mining is kinda dead for private users now.
       
    11. laria

      laria Well-Known Member

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      why? what did change?
       
    12. toliman

      toliman Member

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      The production of special hardware, ASIC is limiting the availability of new miners. And the purchasing power of bitcoin is going to be tied to producers, or in this case, harvesting farms.

      Without ASIC hardware, it would be ineffective to try, you need to have petahash production to be a competitor.

      A year ago now, it was tough. But, you could mine in a pool with a few video cards for $2000. For maybe $20 a week.

      Now, you need to purchase a Terahash miner, the average price would be $20k. And the return would be around $400 a day, to $60 a month in a few months. Right now, you're going to get hundreds . But it's not linear.

      KnC and some of the new 2014 chips from bfl or bit fury, asicminer, etc. Are coming in 1q and 2q 2014.

      Bitcoin is a lottery in the current market conditions, and in order to get a ticket to play, you need to be productive enough for the pool to hand over a dividend share usually for a few gigahash, AND the pool needs to be powerful enough to get a large percentage of the total network to get bitcoins to share.

      Alternatively you can get a division share with certain private bitcoin miners and pools for $300 per gh, but it's not a good deal. Avoid straight conversion to hash rate, go for pool percentage or shares of pool return. The best option if you want investment is the largest private pool currently available (using bitfury hardware iirc) , do the research on this before you buy anything.

      It is organised gambling now. The reality is, China is only interested in bitcoin due to tax evasion and the gambling potential. Which makes it exciting. They have zero interest in stability so they love the $500 price, it will jump to $900 within months again on extreme cases and exigent purchases.

      Consider the low price now as getting everyone on the trampoline, and the later surges as trying to shake off the top and bottom investors.
       
    13. Florida

      Florida Banned

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      Glad I heard about NVIDIA cards being a waste. I won't bother with BTC anymore.
       
    14. Nani

      Nani New Member

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      So with a mediocre pc that runs wow on medium in a country where electricity is expensive this is not worth it right? even though i leave my PC open 24/7 this is gonna make the bill go up?
       
    15. Nani

      Nani New Member

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      is there anyway to get EXN/BTC or anything like this via mining without using more resources than the computer already is even though it will take aloooot longer time? any programs or so?
       
    16. Hunter Wilson

      Hunter Wilson New Member

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      good information thank you. Mining bitcoin is pretty cool thing to do. it's so creative and innovative
       
    17. kupook

      kupook New Member

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      bitcoin 6100$
       
    18. rossie46

      rossie46 New Member

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      I am loooking for some good hashing power gpu miner, can anyone suggest me any ready miner as i need to setup a small mining farm. Also anyone knows about this newly launched server miner promax7, how good is it? is it reliable? anyone ordered it?
       
    19. toliman

      toliman Member

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      Tbh until I got this reply, I'd kind of forgotten about GPU mining since the ASIC launches in 2013.

      However, in the shadow of Bitcoin and Ethereum being driven by opportunism, people are still attempting to get in on the "ground floor" of alt coins.

      I don't mine anymore, I made a handful of btc and cashed out when it was like $800, before it made half a million dollars, and sure if I had HODL, it would be a very different story helping to buy a house and a tesla p100d, sic.

      I don't regret it though, I had fun.

      If you get into this,

      mining altcoins on something like nicehash.com switch/rotate between different alt hash networks that aren't easily converted to ASIC networks, especially scrypt variants.

      Altcoins are ... a niche. As long as you get in early and fast, it will make money back. Perhaps paying off in 10 months what you invest in hardware and power consumption. Run multiple calculators online for the costs and drop the estimates by 10% each month to be practical.

      You might get $3 to $15 / week for a modern GPU like the 1070 or rx580. $0.10 to $2 a day, 0.00002 BTC depending on how 'generous' the pool is when it gives you the scraps, after it has paid off 490,000 other accounts.

      If you buy 12 graphics cards, and in 2020 it all falls flat, make sure that the gpu's are resellable. Have contingency. Sell current gen tech to internet cafes, etc.

      Do not be optimistic about cryptocurrencies. Ever.

      They are ruthlessly inefficient and you don't have the resources to get ahead unless you're going to work unethically or illegally, or can insulate yourself from people who are going to be ruthless, unethical and stupid. Or some combination of the above.

      FWIW, the promax7 looks like a custom cluster with what looks like ... 34 GPU'S in a box. Which is both cool (sic) but also questionable. I don't know any of the build choices, and it might have stability issues, as clusters often do, ie having custom code linux clients you won't have support for if the company goes silent one day.

      Aside from the expense of buying 10 to 20 ~$400 rx480 and rx580 systems, or blending both in the same cluster / rig. Which is actually not a bad idea for futureproofing against ASIC resistant blockchain network changes, ie requiring a bulky memory storage for every work unit , so it needs 5gb+ of VRAM to hash a block effectively, or it has to shuffle work to and from System RAM which would need to use more of the PCIE bus and expensive system RAM / 32gb SSD'S and NVRAM like devices, such as the Intel optane storage.

      Altcoins are not predictable for the future. A machine that you buy might be worthless in a year, or worthless as to cost more than it produces. Even with solar power or wind generated power, hydro, whatever, just because the whole system is variable.

      The downside is, altcoins are readily abused by speculators and opportunists, not investors or miners. The value could depend on the day, or the arbitrary difficulty of the hash network of the day.

      What could generate $45, could be $0.12 within a week, or a day if the network itself is not ASIC resistant,

      or, someone builds a power efficient GPGPU system at scale, which NVIDIA has already claimed it wants to build and sell, a general purpose GPU for encryption and well, mining altcoins will be the first practical use, along with more practical things like SSL acceleration for eStores and having thousands of secure web pages/VPN connections open at the same time.

      They hope.

      Anyway, do the research, find out how to build a mining rig cluster, which isn't super hard with raspberry pi 3b computers as the "boss" / executive of the network, which boots up and manages the motherboards and hands out the mining work.

      You just set up the power, duct up some multi fan cooling, find/make 3d printed GPU brackets and you've saved yourself $3,000 on a 30+ GPU mining system.
       

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