Sunday, April 20, 2014

Adventure in Bitcoin: GridSeeds

Part  1

Potato chips. You can't just eat one, am I right? That's how mining has become for me. It's always just a little more mining power. Like reaching in and grabbing a couple of extra chips and before you know it, the entire bag is empty. But in the case of mining, there will always be something left in the bag. You can trade various coins, set up more rigs or upgrade your current hardware.

Sunday, April 6, 2014

Adventures in Bitcoin

Part 2
Over the last few months, I decided to try my hand at mining Bitcoins\Cryptocurrency. Recently, I found the best way to get started is to mine what are called Altcoins. Bitcoins and a few others are based on SHA256 hashes which are easier to verify transactions and therefore there are ASIC or Application Specific Integrated Circuits that can mine very fast. Because of this, the network difficulty becomes very high and therefore takes more power for the same reward. Basically you get a reward for mining which is providing processing power to verify transactions. Once the network agrees that a transaction is valid, it then confirms the transaction. Altcoins are based on Scrypt mining which is more memory intensive, so using your GPU to mine is still profitable. Profitability meaning you receive enough to cover your cost of hardware, power usage and a little extra for the wallet. Covering your cost of hardware can take a few weeks to a few months depending on how much you invest and your hash rate. One thing to keep in mind is even if you are not receiving very much, you are also mining for future profits. The idea being that the few Bitcoins/Altcoins you acquire now, will be worth much more in the future. (Some people have become wealthy due to mining Bitcoins a year ago.)  In most cases I wouldn't have any expectations of getting rich or anything but it is a fun learning experience.