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Author Topic: Mining Multiple CryptoCurrencies  (Read 5300 times)
FinShaggy (OP)
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April 26, 2013, 11:29:59 PM
 #1

I am wondering a few things, as I don't have the computing power to mine yet, so I don't have the ability to figure these things out for my self yet.

1) Can you mine multiple currencies on 1 computer?

2) What exactly does the hash rate mean? If blocks are being mined at 6 gh/s, do blocks get through twice as fast as they would if the hash rate was 3 gh/s?

3) What is a 'mining pool' and how do you join one?

4) Where do they block codes come from? I know transactions, but how does the pool get ahold of them?

5) Am I right about this?: Bitcoins are best and most popular to mine, but big pools means small payouts. Litecoins are mined fast, and are sold at a pretty good price. Devcoins are an easy coin to mine, and help to support the artistic and online development community. Feathercoins are easy to mine and may be worth something soon.

If everyone is thinking outside the box, there is a new box.
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April 27, 2013, 12:41:11 AM
 #2

I'll try to answer some of your questions, but if what I say is a little too complicated, check out this website and watch the nice video. IMO it does a great job at simplifying BTC and mining: http://www.bitcoinmining.com/

1) Can you mine multiple currencies on 1 computer?
Yes, just not on the same GPU. I can mine BTC on one GPU, and LTC on a 2nd GPU, using two different instances of CGMiner.

2) What exactly does the hash rate mean? If blocks are being mined at 6 gh/s, do blocks get through twice as fast as they would if the hash rate was 3 gh/s?
You need to understand how BTC works. BTC mining is taking all the current transactions, adding a few pre-determined (and rapidly changeable) variables, and putting them thru a hashing algorithm (SHA-256). The speed number that people quote (150KH/s, 300MH/s, 2.5GH/s, or 100TH/s) is the number of times this process is repeated per second. My BFL Single is mining away 877MH/s, which means it's doing 877 million SHA-256 computations every second.

3) What is a 'mining pool' and how do you join one?
A pool is a way for miners to combine their efforts, and then split the rewards. Lets say you're a small time miner, who has a very small hashrate. You sign up for a pool (usually at their website), and use a miner software to point your GPUs or other hardware at their pool. If you have 1% of a pools hashrate, you get 1% of their BTC, regardless of whether you found the block or not. You get a small chunk of other people's blocks, but you agree to share your block with them if you find one.

4) Where do they block codes come from? I know transactions, but how does the pool get ahold of them?
When someone is mining, they are trying to find "shares". A share is a hash (that includes all the network transactions) that meets a pre-determined difficulty. For most pools, that difficulty=1. My BFL Single that I mentioned earlier mines at 877MH/s, and finds about 12 shares a minute.

A block is any share with a difficulty higher than the pre-determined network difficulty, which right now is 8.97million. Now these higher difficulty shares are very hard to find, and are quite rare, which is why people mine in pools.

The incentive for mining is that whoever does actually find a block (share with a high enough difficulty) gets granted BTC as a reward. These "newly minted" Bitcoins are not given from one place to another, but rather generated by the Bitcoin program. It's hard-coded that new Bitcoins can only be generated upon the discovery of a new block, and only to the person who found the block. This limits the supply of BTC, and offers incentive to mine.

5) Am I right about this?: Bitcoins are best and most popular to mine, but big pools means small payouts. Litecoins are mined fast, and are sold at a pretty good price. Devcoins are an easy coin to mine, and help to support the artistic and online development community. Feathercoins are easy to mine and may be worth something soon.
Bitcoins are by far the most popular crypto-currency out there. However, pool size does not limit your payouts. Larger pools will mean you get a smaller chunk of the block, but large pools find more blocks, so it evens out. Would you rather get $1 at the end of the day, or $0.10 10 times throughout the day?

Litecoin was designed to be "the silver to BTC's gold", and designed to run in parallel. Beyond those two, there are all sorts of alt-coins, not a lot of which are worth much.

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FinShaggy (OP)
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April 27, 2013, 12:48:54 AM
 #3

I'll try to answer some of your questions, but if what I say is a little too complicated, check out this website and watch the nice video. IMO it does a great job at simplifying BTC and mining: http://www.bitcoinmining.com/

1) Can you mine multiple currencies on 1 computer?
Yes, just not on the same GPU. I can mine BTC on one GPU, and LTC on a 2nd GPU, using two different instances of CGMiner.

2) What exactly does the hash rate mean? If blocks are being mined at 6 gh/s, do blocks get through twice as fast as they would if the hash rate was 3 gh/s?
You need to understand how BTC works. BTC mining is taking all the current transactions, adding a few pre-determined (and rapidly changeable) variables, and putting them thru a hashing algorithm (SHA-256). The speed number that people quote (150KH/s, 300MH/s, 2.5GH/s, or 100TH/s) is the number of times this process is repeated per second. My BFL Single is mining away 877MH/s, which means it's doing 877 million SHA-256 computations every second.

3) What is a 'mining pool' and how do you join one?
A pool is a way for miners to combine their efforts, and then split the rewards. Lets say you're a small time miner, who has a very small hashrate. You sign up for a pool (usually at their website), and use a miner software to point your GPUs or other hardware at their pool. If you have 1% of a pools hashrate, you get 1% of their BTC, regardless of whether you found the block or not. You get a small chunk of other people's blocks, but you agree to share your block with them if you find one.

4) Where do they block codes come from? I know transactions, but how does the pool get ahold of them?
When someone is mining, they are trying to find "shares". A share is a hash (that includes all the network transactions) that meets a pre-determined difficulty. For most pools, that difficulty=1. My BFL Single that I mentioned earlier mines at 877MH/s, and finds about 12 shares a minute.

A block is any share with a difficulty higher than the pre-determined network difficulty, which right now is 8.97million. Now these higher difficulty shares are very hard to find, and are quite rare, which is why people mine in pools.

The incentive for mining is that whoever does actually find a block (share with a high enough difficulty) gets granted BTC as a reward. These "newly minted" Bitcoins are not given from one place to another, but rather generated by the Bitcoin program. It's hard-coded that new Bitcoins can only be generated upon the discovery of a new block, and only to the person who found the block. This limits the supply of BTC, and offers incentive to mine.

5) Am I right about this?: Bitcoins are best and most popular to mine, but big pools means small payouts. Litecoins are mined fast, and are sold at a pretty good price. Devcoins are an easy coin to mine, and help to support the artistic and online development community. Feathercoins are easy to mine and may be worth something soon.
Bitcoins are by far the most popular crypto-currency out there. However, pool size does not limit your payouts. Larger pools will mean you get a smaller chunk of the block, but large pools find more blocks, so it evens out. Would you rather get $1 at the end of the day, or $0.10 10 times throughout the day?

Litecoin was designed to be "the silver to BTC's gold", and designed to run in parallel. Beyond those two, there are all sorts of alt-coins, not a lot of which are worth much.

Thank you Smiley But I believe you are wrong about one thing, Devcoins are pretty valuable. Maybe not in terms of mining, but in terms of amateur video making, song writing, writing, development and other amateur arts, Devcoins pay REALLY well and all they want from you is originality. And to help mine for a Devcoin pool would be a valuable contribution, and once everyone realized what devcoins are, whatever stash you get from mining will be of actual value as well.

If everyone is thinking outside the box, there is a new box.
crazyates
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April 27, 2013, 01:09:03 AM
 #4

Thank you Smiley But I believe you are wrong about one thing, Devcoins are pretty valuable. Maybe not in terms of mining, but in terms of amateur video making, song writing, writing, development and other amateur arts, Devcoins pay REALLY well and all they want from you is originality. And to help mine for a Devcoin pool would be a valuable contribution, and once everyone realized what devcoins are, whatever stash you get from mining will be of actual value as well.
Mmmm I don't really think I am wrong, in that sense. I don't see what the point is in a lot of alt-coins, but I especially don't see the point for one that's basically just a glorified pat on the back.

And yes, from a mining standpoint, it's utterly worthless to mine them. It is literally 200x less valuable to mine them instead of BTC, and is the least profitable of all alt-coins.

If you really want to support devs or artists or whoever, just donate BTCs. I'm sure they'll appreciate it just as much. Wink

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FinShaggy (OP)
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April 27, 2013, 01:15:54 AM
 #5

Thank you Smiley But I believe you are wrong about one thing, Devcoins are pretty valuable. Maybe not in terms of mining, but in terms of amateur video making, song writing, writing, development and other amateur arts, Devcoins pay REALLY well and all they want from you is originality. And to help mine for a Devcoin pool would be a valuable contribution, and once everyone realized what devcoins are, whatever stash you get from mining will be of actual value as well.
Mmmm I don't really think I am wrong, in that sense. I don't see what the point is in a lot of alt-coins, but I especially don't see the point for one that's basically just a glorified pat on the back.

And yes, from a mining standpoint, it's utterly worthless to mine them. It is literally 200x less valuable to mine them instead of BTC, and is the least profitable of all alt-coins.

If you really want to support devs or artists or whoever, just donate BTCs. I'm sure they'll appreciate it just as much. Wink

The point in multiple alt currencies is the same as investing in multiple currencies when investing in forex. You don't JUST invest in Euros or BP because they are the best, you want to get some Yen and stuff too.

And no from a mining standpoint they are not worthless, because they will go up in value soon. People just have to know what they are, they are not a glorified pat on the back, it is literally part of a project to do great things in the world, read about the bounties: http://www.devtome.com/doku.php?id=devcoin_bounty&s[]=bounties

And donating Devcoins is just easier than donating bitcoins because they don't cost 150$ right now, but could one day. So right now you could invest 25 cents in supporting the community, you would have over 500 devcoins from that 25 cents, and one day those coins could be worth .01 cent each or more, and you could donate them to someone who helps you, or who has a song you like on YouTube or something. It's just a good investment, and a good way to be charitable and it's extremely cheap right now.

If everyone is thinking outside the box, there is a new box.
FinShaggy (OP)
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April 27, 2013, 01:19:31 AM
 #6

Investing in Devcoin is like investing in fractional-penny stocks that have the potential to turn into gold... Or at least into whole pennies. And mining does that investing for free.

If everyone is thinking outside the box, there is a new box.
crazyates
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April 27, 2013, 02:33:07 AM
 #7

For someone asking some pretty noobish questions about how BTC, blocks, hashing, pools, etc all work, you sure do seem awfully invested interested in Devcoins.

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April 27, 2013, 02:37:25 AM
 #8

For someone asking some pretty noobish questions about how BTC, blocks, hashing, pools, etc all work, you sure do seem awfully invested interested in Devcoins.

I'm not so educated about mining because as I CLEARLY stated before, I don't have the money to mine yet. But I recently learned about and will soon be earning Devcoins, and I have learned a lot about the value of them in terms of investable charity.

Soon I'll know about mining, but I don't know anything yet, and I don't have anything to mine with yet. So that's why this thread exists.

But I don't have to mine to see the value in DVC. But when I start mining, I will mine DVC. LTC too, but DVC for sure.

If everyone is thinking outside the box, there is a new box.
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