Simple Mining

I just got a PM from a new user that was asking about how to mine coins. I was talking on the forum about mining new coins and holding them to see if they ever gained value. I wanted to address both here briefly in case others had the same questions.

One of the parts of our investment fund, about ten percent, is brand new coins. We grab the wallets, mine around 100,000 and let the wallets sit. After a few weeks/months around 4% of those coins have gotten a value and are on an exchange. To keep the cost of the process minimal, we do many Scrypt based coins and use a few local PC's to mine for a day or so.

Mining new coins goes like this for us and could be done by nearly anyone.

Scrypt based NEW COINS can be mined by nearly any PC. I will not mention the software here because this thread does not allow it, but it is free and you can Google the info. Any PC can mine using the CPU. SHA256 and other algos can also be mined locally, but the machine power and speed will limit the process. A good graphics card is necessary many times and you should check this forum before buying one. The software that mines works with specific brands and card better than others and many expensive, powerful graphics cards are not even supported.

Many coins can be mined directly from the wallet. Go to the debug menu, console and type "setgenerate true". If there is no error, then the wallet has the potential to mine some coins.

Caveats...

Most home computers can only mine Scrypt coins with any success. Also, the difficulty of mining any coin rises over time/use. That means that a $200 pawn shop computer might be able to mine a brand new Srypt coin, but will never produce anything with an established coin like Litecoin.

I will not mention the site here, but if we really like a coin, we will rent mining power. You should PM me about this if you are unsure. There is a difference between renting hashing power on some site and others. The site we use connects your mining pools with a real person's mining hardware. It is legitimate and has been there for years. There are more than 500 sites that promise to rent you hashing power, most of these are scams that promise a payout, give you free power and you can't withdraw until you have spent some money, then they steal your money and run. PM me and I will point you to the site we use. This will not produce a profit for anything but brand new coins or rising interest coins.

We experimented one day with renting and pointing the rigs at mining pools for established coins. We started with 0.5 BTC and the first round produced about 0.39 BTC in revenue, the second round, investing that 0.39, produced 0.2 and after that it was not even worth it. We only mine very select coins by putting real money into it.

Anyway, mine the shit out of these new coins and hold them for a few months and around 4% of them hit the exchanges and the 100 Satoshi mark. However, about once per three month period, a coin that we have been holding will hit the target and go as high as 0.005 BTC for a period, sometimes holding there. For a cost of $13 per month in increased electricity and mining costs, we produce around $300 per month in coin sales. Bear in mind that we are storing some coins that were mined three years ago or more. We just wish we had mined and held some of those first BTC. Think about that block 1 reward of 50 BTC. That would be around $28,000 right now. Mine the new coins, hold them in the wallets and you just might find that one day, a few months or years from now, you have 100,000 of the next LTC, Doge or even Bitcoin. Oh, and value is not everything. In the exchanges and the real world, every thing is worth only what another person will pay for it.