1) Cryptocurrency. 2) Mining. 3) Profit?

3,749 Views | 25 Replies | Last: 6 yr ago by zurcaled11
wee_ag
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Ok - someone give this old man the dumbed-down cliff notes version of what cryptocurrency is, how the whole mining thing works and how you make money off it.
redd38
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Unless you're in a very unique situation then you won't make money mining it because your expenses will be greater than your income.
tamusc
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https://www.lifewire.com/cryptocoin-mining-for-beginners-2483064

Quote:

Is It Worth It to Mine Cryptocoins?
As a hobby venture, yes, cryptocoin mining can generate a small income of perhaps a dollar or two per day. In particular, Litecoins, Dogecoins, and Feathercoins are very accessible for regular people to mine, and a person can recoup $1000 in hardware costs in about 18-24 months.
As a second income, no, cryptocoin mining is not a reliable way to make substantial money for most people. The profit from mining cryptocoins only becomes significant when someone is willing to invest $3000-$5000 in up-front hardware costs, at which time you could potentially earn $50 per day or more.

Now, there is a small chance that Litecoins, Dogecoins, or Feathercoins will jump in value alongside Bitcoin at some point. Then, possibly, you could find yourself sitting on thousands of dollars in cryptocoins. Note: the emphasis here is on 'small chance', with small meaning 'slightly better than winning the lottery'.

If you do decide to try cryptocoin mining, definitely do so as a hobby with a very small income return. Think of it as 'gathering gold dust' instead of collecting actual gold nuggets.
If your objective is to earn substantial money as a second income, then you are better off purchasing cryptocoins with cash instead of mining them, and then tucking them away in the hopes that they will jump in value like gold or silver bullion.

The key issue with most of the cryptocurrency mining is power. Unless you have access to the cheap/free power, like solar or someplace that covers your utility bills, you'll pay more in electricity than you can earn through mining.
wee_ag
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redd38 said:

Unless you're in a very unique situation then you won't make money mining it because your expenses will be greater than your income.
This is 98% unhelpful
hph6203
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There's a decentralized ledger, the ledger is verified by a network of nodes, new transactions are added to the ledger roughly every 10 minutes, and are capable of being added because a miner finds a "number" that validates the transactions versus the existing ledger from a cryptographic standpoint. When the miner locates this "number" they are compensated with bitcoin and transaction fees. The difficulty of finding this number and the reward for finding the number decreases over time (reward halves every 4 years, difficulty increases/decreases in order to insure it takes roughly 10 minutes to locate the number for the entire network of miners to find).

Eventually when all the bitcoins are distributed (100 years from now, if its still around) the miner will only be compensated with transaction fees.


The problem is that the kind of rigs you need to run in order to be competitive in finding the numbers are very power intensive and the rate at which you find bitcoin will be outpaced by your electric bill, so unless you want to invest in a lot of solar panels, or have the capability of building a hydroelectric power plant on your property, you're probably not going to make money doing it. You'd have a better chance making money by buying Bitcoin and hoping the it's economy holds together and increases in value over time enough to justify your investment.


That's my very limited understanding of how it works.
redd38
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wee_ag said:

redd38 said:

Unless you're in a very unique situation then you won't make money mining it because your expenses will be greater than your income.
This is 98% unhelpful


Sorry, let me be more clear: don't do it.
TXAG 05
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How do you mine it? Is there a website or something where you go try to find that magic number?
hph6203
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Software distributed by each Cryptocurrency.
tamusc
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Cstrickland05 said:

How do you mine it? Is there a website or something where you go try to find that magic number?

The website I posted above has a pretty good outline of what you need.
wheelskjm
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Mining - only good for Proof of Work blockchains like bitcoin/litecoin, curently ethereum is PoW but will be changing to proof of Stake after Casper is released "in the future"

Cstrickland05 said:

How do you mine it? Is there a website or something where you go try to find that magic number?



Majority of the time people pool resources together and split the lottery based on %of "hashing power" in the pool. F2pool is a major one if youd like to look one up.

Proof of Stake blockchains - no mining, gain value by holding your coins and some have "supernodes" which serve as a mixer of coins for anonymity purposes, like stratis and I think pivx and nem.



Mining bitcoin without special equipment will not yield results but will educate you on how the infrastructure is designed. You can mine other coins and even some pools will bounce from "most profitable coin to mine" and convert the earnings immediately to bitcoin for a cut.

There is a GPU shortage right now.
FTAG 2000
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Is there a price per kW hour that it is profitable at?

I can see it being a lost cause somewhere stupid like CA where you're paying 20 cents per kW hour for electric, but for example, i'm paying seven cents here in Dallas.
wheelskjm
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https://www.nicehash.com/?p=calc
wheelskjm
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https://www.asus.com/Graphics-Cards/MINING-P106-6G/overview/

NVIDIA just launched mining specific GPU's
tamusc
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wheelskjm said:

https://www.asus.com/Graphics-Cards/MINING-P106-6G/overview/

NVIDIA just launched mining specific GPU's
Good, maybe this means that people that actually want GPUs for actual gaming that cost less than $500 can finally buy them again.
cr0wbar
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let's do it, Wee!
hunter2012
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i wonder if this is profitable when i have the free energy setup with TXU. I could concievibly run it for free between X hours. Think TXU would get pissed with me?
boy09
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Curiosity got the best of me, now I'm currently in the middle of building a rig. About 6 months late to he game, I know... I've got my motherboard, power supply, ram, and 2 GeForce GTX 1070's in hand. SSD is arriving today and 2 more 1070's arriving on Thursday. Finished building my "case" last night.

I figure worst case scenario I bail on the whole project and just resell all the components at a small loss.

Now I just have to figure out which currency I want to mine...
cr0wbar
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Oh God I've just lost $700
wheelskjm
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I'm excited for you guys.

Where did you end up buying your equipment?

TexAgsAnon
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Only a decade late to the party guys.
boy09
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wheelskjm said:

Where did you end up buying your equipment?


My BIL stumbled upon some 1070's at Fry's last week and he picked up 2 for me. Ordered 2 more from NCIX yesterday. Everything else came from Amazon.
wee_ag
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cr0wbar said:

let's do it, Wee!
I've got this laying around. It's circa 2005 but it'll work, right?

tamusc
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permabull
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wheelskjm
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I'm working on an order of 10k gpu's. Can't believe how hard it is to get someone on the commercial sales end generate a quote...

Demand is too damn high.
wheelskjm
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I might be able to re-re-sale some of them if I get a good enough rate, if anyone is interested, let me know.
zurcaled11
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Any update? How is the mining going?
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