What is Bitcoin Mining? How Does it Actually Work? (2020
What is Bitcoin Mining? How Does it Actually Work? (2020
The Evolution of Bitcoin Hardware
Bitcoin (BTC) Price Index — CoinDesk 20
7970 vs 7950 vs 2x6950 for BITCOIN mining? | AnandTech
7970 getting 585Mhah/s, anyway to boost it? : BitcoinMining
When to Stop GPU Mining.
The 7970 is, from what I can tell, the best $/(MH/s) and most efficient GPU miner out there. I didn't do all of the comparisons necessary though - so there may be one better. The question is, at what point does bitcoin-mining on a 7970 no longer make financial sense? This is really simple math, and I hope we can avoid a lot of this question being asked over and over again by showing how simple it is. The following assumes a miner is receiving a roughly equitable share of its contribution to the network's hash power (ie through a pool, if you're GPU Mining or considering getting in to mining) these things will be true. Variables you can edit.
Cost per kWh - I am assuming $0.15, as this is on the lower-upper bound of prices in the US.
Card Cost and Amortization - it is a generally accepted accounting principal (GAAP) to amortize the cost of an asset purchase over a 2-year lifespan. It probably makes more sense here to use 1-year, but 2-years is standard. Feel free to play with this number.
The BTCUSD exchange rate.
That's it, actually. Everything else is just the protocol specification. So here we go... Question 1: What is the daily cost of operation for a 7970 (not including the rest of the computer)?
A 7970 has a reported power draw of 250W
250W running all day is 6 kWh per day.
6 kWh per day is $0.90 per day @ $0.15 per kWh
At $90/BTC, this yields a daily electricity cost of 0.01 BTC
At $400 on NewEgg, a 7970 has an amortized cost of $0.55 per day ($400 / 365 days/year*2years)
$0.55 is 0.0061 BTC
Operating Costs = 0.0161 BTC Question 2: How much of the network will I have to capture with my card to earn at least 0.0161 BTC per day?
The network yields approximately 3600 BTC per day (25 bitcoin / block * 6 blocks per hour * 24 hours per day)
0.0161/3600 = 0.0004472%
Answer: The card must be capturing 0.0004472% of the total network to earn at least 0.0161 BTC per day. Question 3: How big does the network have to be before the 7970 is no longer profitable?
The 7970 operates at a reported 650MH/s
This will remain profitable until 650MH/s is less than 0.0004472% of the total network.
650(MH/s) / 0.000004472 = 145.3 TH/s
Answer: The 7970 will be profitable until the total network hashrate exceeds 145.3 TH/s.
This is just an easy maths model you can use to apply to any question you may have with regard to the 'potential profitability' of your current graphics card or even your potential ASIC purchase. If you know how much hashing power the card has, and what its power draw is, it is trivial to determine at what point your miner will no longer be profitable. This is not a predictive model of when on the calendar your device will be obsolete, however. And one thing you may notice about the inclusion of the BTCUSD price in this model is that as BTCUSD goes up so will the costs of operation go down. If your power is cheaper than $0.15 or even free, it could last for a little while yet. However, to give you a glimpse inside my crystal ball as it were, my models would suggest that a 7970 will be obsolete in the third or fourth week in April if BTCUSD were to maintain at $90 and power costs at $0.15/kWh. Happy mining.
this is the very basic for latecomer always doesn't understand. i keep seeing they insist on mining bitcoin with SHA256 ASIC, i know its fun, its fun to see you generate money out of thin air, but thats not how we do it today because SHA256 ASIC era are gone, its very expensive playing field right now, if you insist want to mine some bitcoin, you should start mining using GPU! why? lets calculate profitability of your SHA256 ASIC, and lets make it really easy by assuming some factor :
you have free electricty
your ASIC does not consume electricity
your ASIC shipping cost is free
you have ASIC right now in hour hand
you bought ASIC for 1BTC price (for this example, i will use ASICMiner Cube 38GH/s which price is 1BTC right now)
now go here you will see you will get 1 BTC in about 75 days right now (see the 2nd column from the rightmost), this value is not correct since it does not account for difficulty increase within 75 days, bitcoin difficulty are increasing about 35% in 2 weeks, thats about 70% per month, you will see the correct calculation is here which you will never get 1BTC within a year, and after 6 months your ASIC doesn't generate bitcoin anymore now lets compare it to GPU miner for Scrypt mining, which i use realistic assumption here
you dont have free electricity, you will pay 0.1$/KWH
your GPU rig consume constant max amount of electricity that it need 24/7
your GPU rig come with shipping cost
you have GPU rig in your hand right now
you bought GPU rig for 1 BTC ( its about 1000$, for this example i will use 2x AMD R9 280X which cost 800$ and will produce 1.6MH/s with cost about 750W/h )
now go here, you will see that on the most profitable coin (first row) you will get 1 bitcoin for about 30 days (its 45 days faster than SHA256 ASIC), how about difficulty increase within these period, this factor is not as scary as bitcoin, lets see difficulty chart for LTC here, you will see that the diff is up and down, by calculating the data history for 1 year, you will get that LTC difficulty increase is about 3% per month on average (this is 25x smaller than bitcoin difficulty change rate), so coinwarz data is not too much way off here by not take into account of difficulty increase TL;DR;
you get 3500% more profit mining scrypt altcoins using GPU than mining bitcoin using SHA256 ASIC, for same price of hardware.
mining using GPU are less risk because you can buy GPU rig anytime, anywhere, no pre-order.
you get 1BTC in 30 days for mining altcoin with GPU, compared to 300+ days for mining bitcoin with ASIC
note: this calculation are made in worst case scenario for GPU compared to best case scenario for bitcoin ASIC thats just prediction and calculation, things will go wrong right? lets see the report from my own GPU mining rigs here, see 2nd sheet (RIG1-Report), this is my earning report day to day in BTC (already running since december 2013), my rigs cost about 2000$ (this is 2nd hand 6x AMD 7970 for 4.2MH/s) and will ROI within 50 days from start if my calculation are correct
[Help] Looking to get started. Questions and Concerns
So, I'm at school, and I'm going to be in the dorms next year. I mainly use my laptop for my work / play, but I have a desktop back home that was my rig before I came here. I was thinking about ripping out the NVidia GTS 250 and putting in a card or two for bitcoin / litecoin mining. It sports an AMD Athlon II X4 CPU @ 2.6GHz and 8GB RAM with a 650W PSU. I was thinking about putting a 7970 or two in. I know that there are other cards, but this would allow it to fall back as a great gaming rig if mining doesn't turn out. The plan was also to set up some liquid cooling to keep it from running too hot. I think this investment would be around $1500 max (This includes some money for an initial direct investment in bitcoins / litecoins). I have done a bit of research for the past few days on this, and I'm a bit hesitant to get started. The cost of power is no concern, so I'm guaranteed to make SOME money. Even if it takes a year for me to break even, that's okay. However, I know that a lot of people are saying NOT to get into bitcoin mining due to the new ASIC miners coming out that are going to fuck the difficulty for GPU rigs. I also hear a lot of people saying that getting into Litecoin mining is an alternative due to it's low hash rate requirement. However, won't ASICs also screw the difficulty here as well, despite it being very low right now (compared to bitcoins)? Last concern I have is that I want to try out litecoin mining a bit first. However, my gaming laptop isn't cooled very efficiently, and it is currently my only machine besides my phone. It has a 7970M and an i7 Ivy Bridge. I did some bitcoin mining just to test speeds, and the 7970M would pull 320 - 350 Mh/s which isn't awful. However, the temps would get upwards of 90C, and the CPU while litecoin mining would get to about 89C with only 1.5 Mh/s. Now I may be wrong, but this seems too hot. I tested these temps against the load from Hitman: Absolution, and while it wasn't quite maxed, it would still run the temp up to about 90C. I've played this and many other high demand games for over a year, and have had no issues. How safe would it be for me to run some litecoin mining on this laptop? Rundown: If I'm not paying for power, would a ~$1500 investment in a mining rig be a smart idea for bitcoin / litecoin mining? Is this planned rig even a good idea, or should I be going for the less available but more efficient cards? Have I missed the boat entirely and is bitcoin / litecoin mining just not a good idea in general anymore? Would it be safe for my laptop to run some litecoin mining on it for short 1hour spurts? Thanks very much in advance!
Word of warning to those of you considering buying from GAWminers
In the hopes of helping prevent someone else from falling for the same trap, I will brief you on my experience with GAWminers (a seller of ASIC mining hardware, in case you're not already familiar) To begin with, let me just say I've never been too serious about mining Dogecoin. I already know I missed that boat when I was too late to the bitcoin party. I just like to have enough to play around with, tip out, or more recently, play some Dogecoin poker on IRC in #dogecoin-holdem (it's not mine, I just have lots of fun there). So, over the past 8 months or so, I've sort of made it a hobby to buy some hardware to grab some more doge out of the ether. A video card here and there, a new power supply to support a couple of 7970s in one box, etc. Y'know, stuff I'll still be able to use long after cryptocoins are long forgotten or whatever. I looked from afar as ASICs took over Bitcoin and always assumed they'd make their way over to Scrypt, and that I might dabble in one at some point just for funsies. In early July, that moment came. I saw the GAWminers fury, and after being beeped on IRC every other minute by somebody talking about their GAWminers fury (my username and their product name is an unfortunate coincidence), I decided it was time to give it a shot. Except instead of one, it was 3. Three GAWminers fury ASICs. Just for funsies. $105 each, at the time. $315 to basically have double my previous max hashing power in less than 1/10th of the power. I figure, I've spent at least twice that much on a video card which I don't use 90% of the time, might as whale. Dogecoin's fun, and this will get me more doge. Only, it didn't stop there. I got them set up, and a week later, I could not help myself, I went ahead and bought a Black Widow too. It was priced at $450 at the time, except I had a $10 coupon sitting there for supposedly leaving my cart unchecked-out for a while. Might as whale. This same day, the price of the fury was dropped to $60 each. Alright, no big deal, price drops happen, I'll just get a credit or a refund and put it toward another Black Widow or something. Only thing that showed up in my email inbox was "request rejected", there was no explanation or anything. I guess their policy is no, then. Not only that, but the Black Widow shortly thereafter dropped to $350, and the fury then to $40. For those keeping count, that's a little under $300 in total price drops that happened to the stuff I bought, and that's just within a couple weeks. I can only imagine what it feels like to be one of the really early adopters of this stuff who paid over $200 for a fury, or someone who poured many thousands of dollars into it. Fast forward to some time after GAWminers updated their site, and I got directed to the support site where it turns out I actually did get a written response to my refund request--it just never made its way to my email inbox, I didn't know this support site ever existed before. It was an apologetic offer for $50 store credit and a brief claim that whatever they're pricing it at is already lower than what they get charged by their suppliers, and if they gave every customer a refund they'd go out of business, etc. (Wouldn't one go out of business by always charging less than what it costs to buy the stuff? I'm not terribly good at economics, though I would think making it up in volume is still a net negative) I chose to give the benefit of the doubt. These are human beings behind these companies after all, and they're just trying to stay above water in a fiercely competitive and rapidly changing world. What would I do in their shoes? I don't know. So, given their offer of a store credit (which I have not yet seen applied to my account), and some apparent speculation from the GAW CEO that mining hardware is no longer being manufactured and may rise in price, I chalk it up to bad luck, I've never been a particularly good gambler, and I'll just continue to have fun with the doge I'm mining, maybe bite once more if the mood feels right. Sure enough, a few days ago, I see this OneMiner thing offering a Lightning X6, 42 MH/s for $700. Not a bad price, I thought to myself, as I had just spent $750 for about 20 MH/s from GAWminers. Might as whale. At this point, I am completely unaware that OneMiner is a GAWminers thing. I know, a quick Google search would have solved that question for me, but it didn't occur to me. I sure found out once the charge appeared on my bank card. $1400 for a pair of Lightning X6's from my friends at good ol' GAWminers. I meant to only purchase 1, but apparently somewhere along the line I double clicked the "I want one" button and had added a second one to my cart. Strike two for my attentiveness and foresight. That's fine, though, I was ready and willing to roll with that. I easily blow that much on phones or tablets that I hardly use. Might as whale. And GAWminers had in fact extended an offer for some store credit, so I figure they're decent enough people and I might take that store credit and buy a little thing later on to grab a few more gigglehashes. Less than 24 hours later, the GAW CEO posted a $150 Black Widow sale (the thread for which is now deleted from hashtalk). One third the price I had just paid for a Black Widow a few weeks ago. Effectively, 6 of those would've roughly equalled the hashing rate I had just spent $1400 on (not counting the difference in power usage), so I feel like I just wasted $500 in a matter of hours. So much for mining hardware going up in price. That's it for me. Even if they do give me the $50 store credit, I'm done doing business with a company that treats their customers in this way. They're afraid they'll go out of business if they credit back the hundreds of dollars in rapid price drops I've helped them subsidize? How about they're going to go out of business if they keep doing this and losing customers to it? These games they play with people's hard-earned dollars only have one winner, and that winner's name is GAWminers. This stopped being fun, and shit got real, real quick. I know, shit already got real when I spent over $2,000 again for hardware to mine a coin. I lost sight of my real goal, which was just to have fun and make more dogecoins and be able to play around with it more. But I also lost sleep over this. I lost money that I could have spent giving something good to the community or doing something good for myself like, say, some decent clothes instead of the same 4 shirts I wear over and over again. I consider myself fortunate that I didn't go even further and lose even more. To be clear: this is entirely my fault. GAWminers' business model is very clear in that they do not care about customers--there are numerous threads just like mine all over the internet, most of them even worse off than me. The business model apparently works for GAW, or they'd have changed their policies to something more in line with other companies that I do business with. I take full responsibility for my lack of control and my being too trusting, and getting in too deep for my own good. I post this not to fish for sympathy, nor to shame GAWminers into refunding me or giving me more store credit. Like I said, I've decided I'm no longer doing business with that company anyway--it would take a pretty significant effort on their part to earn back my trust, and it wouldn't be worth it to them in the long run. Rather, I post this in the hopes that it keeps someone else from going down this same path. It's the story of my life. Missed opportunities. It's already too late, I missed my chance to get filthy rich off bitcoin by not mining with my 7970 for all of 2012, there's nothing I can do now that will make up for it and I don't know why I thought pouring hundreds of dollars down the drain would. Don't get lost in the same trap I did. Curb your appetite for the gigglehashes, and be content with the 20 or 30 doge you now receive per day with your dual core CPU. Or just be happy hanging around on IRC or reddit collecting tips and watching as people happily burn billions of doge. ASIC mining is a dangerous hobby to get into, and it's easy to lose your ass if you're not careful. I leave you with a Kenny Rogers song: https://www.youtube.com/watch?v=Jj4nJ1YEAp4 Time to fold 'em and run. tl;dr:
Doge is fun. I bought 4 or 5 video cards this year to mine more doge, because doge is fun.
I bought a few furies for funsies.
Price drops on the furies the same day I buy a Widow. Price drops on the Widows shortly thereafter.
GAWminers doesn't want to go out of business, won't credit me the full amount of the price drop.
Bought a couple of Lightning X6's on OneMiner
Turns out OneMiner is GAWminers. My bad.
GAWminers cuts price on Black Widow by another couple hundred dollars.
GAWminers doesn't want to go out of business, but won't stop dropping prices immediately after stupid people like me purchase hundreds of dollars worth of hardware.
This isn't fun anymore. Don't make the same mistakes I did.
Seeing how this Subreddit is lacking any sort of info on Feathercoins and the lack of community support we have, I have decided to start a post that would inform newbies about Feathercoin and seasoned vets on the best places to trade. Feathercoin: It is a Crypto Currency that was started by Peter Bushnell. It is a clone of Litecoin (This coin was inspired by Bitcoin). The Feathercoin network generates coins at a decreasing rate. It will generate about 336 million coins which is 16 times more than that of Bitcoin and 4 times more than that of Litecoin. Currently about 25 million coins have been generated. Network hashrates, Pools, Solo mining: Currently a mid end system comprising of 7870 or 7970 will get you abot 400 to 700 kh/s. That means that in a given day you will be mining about 7 to 13 Feathercoins on current difficulty level. However If you mine alone that is solo mining, the probability of you finding a block is hard and it may take a while before you make a coin. To counter this people have started making pools to increase the chances of finding blocks. There are many pools that allow you to have multiple workers so you can setup multiple systems and mine at your leisure. Currently some of the popular pools are: http://www.fcpool.com/ http://give-me-coins.com/ http://www.wemineftc.com/ http://fc.ltcoin.net/ https://ftc.d2.cc/ For a full list of mining pools: http://coinpools.sdfg.org/ftc It is highly recommended to join a pool to make mining profitable. Look at the pools posted above, look at their fee structure, their payout and make an informed decision on which pool to join. Hardware and Mining: Feathercoin utilizes scrypt based mining that is you can use your GPU (the Graphics card inside your system) to mine them. AMD Cards are highly recommended as they output higher hashrates as compared to Nvidia. To give you an idea of the difference a 7870 ghz edition mines at about 375 kh/s whereas a Nvidia 780ti would mine at about 224 to 300 kh/s. If you are seriously considering in investing in this venture it would be best to buy a rig that supports 6 GPU's and buy either the 7950 or the 280x as they have considerably higher hash rates and are affordable to say the least. Something one should be aware of is that mining produces a lot of heat as your system is basically running at full capacity and therefore needs a lot of cooling. People usually build rigs in the open (no case) and use household fans to cool them. Also another thing that is common is to use PCIe risers as they allow greater spacing between GPU cards and effectively help in dissipating heat. Mining uses a lot of electricity so it is best to use a schedule to mine or if electricity is cheap then 6 7950's running 24 hours a day would cost you about 12 to 18 dollars in electricity a month, maybe more depending on where you live. The software to use for mining are Cgminer (https://litecointalk.org/index.php?topic=6925.0), guiminer scrypt (http://forum.feathercoin.com/index.php?topic=961.0) and cudaminer for Nvidia cards. I would advise against Cpu mining as that is not profitable and will simply weigh you down. Invest 250 to 350 dollars in a good AMD GPU and you will be mining much more effectively. Trading: There are many places where one can trade Feathercoins but only a few of them offer FTC/USD exchange. Btc-e (https://btc-e.com/exchange/ftc_btc). Is one of the biggest cryptocoin trading exchanges, it does not offer USD exchange for Feathercoins as of yet but allows you to exchange for Bitcoins. Crypto-trade (https://www.crypto-trade.com/trade/ftc_btc), this trading exchange allows you to trade against the USD making it more favourable to miners however there is currently a lack of volume for FTC as of writing. Other exchanges like Cryptsy, Bter and coins-e are all good but they are heavily dependent on Bitcoins and Litecoins for now. My thoughts Feathercoin is fairly new and its gaining momentum, once big exchanges start listing it against the USD, the venture will become more profitable. For now it is advisable to mine as many as you can and sit on them till value improves or if you have a mining rig that is mining at 22000 kh/s (this will get you about 500 feathercoins a day) then mine the shit out of them and trade them for Btc for profit although I would recommend against this as it it reduces the value of feathercoin. Many exchanges allow you to deposit money via international wire transfers however the minimum is 2000 dollars so keep that in mind before investing real money into this venture. There are alternatives like paypal and okpay that are also accepted but not a lot of people have accounts on those so signup for a website that suits your situation. One last ting we all need to do is spread awareness about Feathercoin, It is a miners coin and the difficulty right now makes it so much more interesting to mine. I will update this page with more information and will answer questions if any to the best of my knowledge. Happy mining My FTC wallet deposit thingy address : 6v1VuL41xGuLG1Bd8usJsuUEkZyac8jKbe EDIT : I realized some of you might have NVIDIA GPU's and are hesitant on getting AMD. Never fear for there is a solution. If you have a motherboard that supports two or more GPU's that is you have more than one PCIe slots than follow these instructions: If you intend to game on your system while you are mining then put the NVIDIA card in PCI slot one and buy an AMD card and put it in slot 2. Now install the drivers in the order Nvidia first reboot and then Amd second reboot. You do not need to plug in HDMI to your AMD card just leave it as it is. Now download gpu miner scrypt and select from the list your AMD card and start mining, its that easy. At night if you want to squeeze in more kh/s then run cudaminer and let it mine alongside your AMD. The best part about this is that you can be mining 24/7 on your AMD card and you will not experience any system slow down while gaming or watching movies. Remember to have atleast two workers workers created so you can mine parallel. If you already have an NVIDIA card then just install your AMD card and install AMD drivers and reboot and run guiminer scrypt. At times you might run into the issue of guiminer not starting, just delete it and re install it and it should work fine in 98% of the cases. This is for those who do not want to invest in a completely new system and would rather use their existing system. You can use cgminer as well but remember the order in cgminer starts from 0 not 1 so if NVIDIA is in slot 1 then it is -d0 -g0 and AMD will be -d1 -g1
At that rate, with $300 from 6950's sale, the 2nd 7950 will have paid for itself in 6-7 months (assuming the current rate stays at around today's levels). I think for my next build I might get a new PSU and go with 2 GPUs. It's pretty hard to go back to NV now as long as bitcoin mining is profitable (unless their GPUs are 40-50% faster in games). 4. Bitcoin Mining Pools. Mining is an extremely competitive game. Even if you buy the best possible miner out there, you’re still at a huge disadvantage compared to professional Bitcoin mining farms.That’s why mining pools came into existence.. The idea is simple – miners group together to form a “pool” so they can combine their mining power and compete more effectively. As for the memory, there is almost nothing changed. HD 7970 uses 5,500 MHz of memory. Bus – 384 bits. This increased the memory bandwidth from 176 to 264 GB / s. 7970 video card potential. Mining of Ether, Bitcoin and Zikesh on the Radeon 7970 remains relevant today. The video card has excellent performance and excellent overclocking potential. NiceHash is the leading cryptocurrency platform for mining and trading. Sell or buy computing power, trade most popular cryprocurrencies and support the digital ledger technology revolution. hash rate, the network hash rate, in the preceding period to target an average block-creation time of 10 minutes. In practice, the time to generate blocks is somewhat random, with some blocks taking seconds and others hours. The Bitcoin system is always searching for a new equilibrium. In the typical situation where network
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