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Thread: Who's mining bitcoin?

  1. #1
    Telaran
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    Default Who's mining bitcoin?

    Any bitcoin miners out there? What kind of MH/s are you getting and with what hardware? I've only been getting around 180 Mh/s with the machine listed below.

    Here's my setup...it's also my Rift machine.

    i7 940
    ATI Radeon 4870 X2
    6GB RAM
    Win 7 64 Pro
    X-Fi

  2. #2
    Soulwalker
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    I'm not but I've been hearing about it quite a bit recently, is it something new that just came out? How does mining work? Is that the only way to get bitcoins?

    Someone told me you can somehow collaborate with other bitcoin users to mine more aster
    Last edited by Valnen; 06-11-2011 at 10:59 AM.

  3. #3
    Telaran
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    Quote Originally Posted by Valnen View Post
    I'm not but I've been hearing about it quite a bit recently, is it something new that just came out? How does mining work? Is that the only way to get bitcoins?

    Someone told me you can somehow collaborate with other bitcoin users to mine more aster

    Well, I will try to explain. It's a little on the complex side and I am still learning too. Bitcoin was started in 2009. It's designed to be a digital currency that is free of any type of central control. That means that there is no governing body, bank, company or government issuing bitcoins. They are generated or mined by users that run the bitcoin program on their computers. ATI/AMD GPU's are especially efficient for this. Nvidia not so much. Once the program is up and running it uses your spare CPU/GPU cycles to process blocks of data. If you unlock it before anyone else, you get 50 BTC. If you pool your resources with other people, you get a fraction. So instead of waiting a week or a month or two you get constant but smaller payouts.

    There is a maximum number of bitcoins that can be found, so that means they are scarce. The can be divided to 8 decimal places, so there is plenty of room for the BTC economy to grow.

    There are merchants that accept BTC and you can even sell them on the various BTC markets. Some guy will even exchange them for Newegg gift cards. The potential is huge.

    It's free to start mining, but don't get all crazy at first. A month ago Bitcoins were valued at around $1. Last week they hit $30. As of this writing they are around $17.

    You won't generate them fast, and it does take a while. The difficulty in generating them changes every two weeks or so. It might get harder or easier to mine them depending on how long it took to mine them the previous two weeks.

    Here are some links!

    http://www.reddit.com/r/bitcoin

    http://www.bitcoin.org

    http://bitcoincharts.com/markets/

    I've been using GUIminer to utilize my 4870 X2.

    http://forum.bitcoin.org/?topic=3878.0

    Pooling with other players here:

    http://www.btcguild.com
    Last edited by Agozyen; 06-11-2011 at 11:26 AM.

  4. #4
    Soulwalker
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    Okay after you get a bitcoin where is it? How do you have it? How do you give it to others?

  5. #5
    Soulwalker
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    Quote Originally Posted by Valnen View Post
    Okay after you get a bitcoin where is it? How do you have it? How do you give it to others?
    It's sort of stored on your computer as a little encrypted file. But really though in order for you to own a bitcoin every other node in the entire network (or at least a majority) also has to agree that you own the bitcoin. So in a sense the whole network knows you have it. You just have to make sure you don't lose that little file that is your identity.

    You can transfer them to other bitcoin users through the software itself. Transactions work the same sort of way, once everyone knows about your transaction and agrees it is legit then that is when it is considered to be confirmed.

  6. #6
    Telaran
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    The bitcoin client generates a unique address for you. The Bitcoin client (and some websites) have send/receive capabilities. So if you wanted to send me BTC, you would enter my BTC address and send me whatever amount you want. Here is a typical BTC address (mine)

    1EDFnzr2QQjvB8zEWmnibZ4obAvWCjGLFh

    You can have as many addresses as you want. I guess some people generate a new one for each recipient.

    The transactions are verified by other clients, so if you try to send me more bitcoins than you actually own, the transaction will fail because it failed authentication. The bitcoin wallet resides on your computer and should be backed up.

  7. #7
    Soulwalker
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    Quote Originally Posted by Agozyen View Post
    The bitcoin client generates a unique address for you. The Bitcoin client (and some websites) have send/receive capabilities. So if you wanted to send me BTC, you would enter my BTC address and send me whatever amount you want. Here is a typical BTC address (mine)

    1EDFnzr2QQjvB8zEWmnibZ4obAvWCjGLFh

    You can have as many addresses as you want. I guess some people generate a new one for each recipient.

    The transactions are verified by other clients, so if you try to send me more bitcoins than you actually own, the transaction will fail because it failed authentication. The bitcoin wallet resides on your computer and should be backed up.
    So if it's just a computer file, can't a person just go in and change their supposed amount of bitcoins? If their computer crashed they'd lose all they worked for, can't they take the file with their number of bitcoins, copy it onto another PC and have twice the amount of usable bitcoins?

  8. #8
    Telaran
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    Quote Originally Posted by Valnen View Post
    So if it's just a computer file, can't a person just go in and change their supposed amount of bitcoins? If their computer crashed they'd lose all they worked for, can't they take the file with their number of bitcoins, copy it onto another PC and have twice the amount of usable bitcoins?

    They can't change their bitcoins. If they did the transactions would be invalidated by the network because they don't match up. And yes, you would need to back up your wallet.

  9. #9
    Soulwalker
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    Well I should probably start mining them then, because I'm starting to hear a lot about it lately, and since it's obviously getting more well known and popular it'd be better to invest in it now

  10. #10
    Telaran
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    Start by just mining with what you've got. Don't invest in hardware unless you have money to burn, mainly because the value is fluctuating a lot. But yeah you have nothing to lose if you don't invest in hardware.

  11. #11
    Soulwalker
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    I think most people agree that mining bitcoins is going to cost more in electricity than you make in coins. Well, that might have changed after the recent massive bubble but since they're crashing now it'll probably be back to normal soon.

    If you're not paying your electricity bill then mining is a fine plan for free money, otherwise its probably not a great idea.

    The best way to get some bitcoins is to buy them with your local currency. It can be quite tricky converting real money into bitcoins though because nobody trusts paypal so you have to use some fairly weird techniques.
    Last edited by Elanthius; 06-11-2011 at 12:15 PM.

  12. #12
    Telaran
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    Quote Originally Posted by Elanthius View Post
    I think most people agree that mining bitcoins is going to cost more in electricity than you make in coins. Well, that might have changed after the recent massive bubble but since they're crashing now it'll probably be back to normal soon.

    If you're not paying your electricity bill then mining is a fine plan for free money, otherwise its probably not a great idea.

    The best way to get some bitcoins is to buy them with your local currency. It can be quite tricky converting real money into bitcoins though because nobody trusts paypal so you have to use some fairly weird techniques.
    Yeah I am doing this casually and not investing in hardware or anything. However if the markets do start to skyrocket again I'd like to have some lying around to cash in and maybe upgrade

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