Bitcoin Mining For Newbies

[protrader786]

Hello,

Most of us have a question, how to obtain a good quantity of BTC quickly and from a reliable source. One such way of doing so is by mining it.

This will be a quick walkthrough without much technicalities for beginners.


What is mining of BTC



Just like mining(searching) for natural resources such as coal, gold etc, this a type of mining done using different electronic devices.

Mining is the process of adding transaction records to Bitcoins public ledger of past transactions. You are rewarded BTC for contributing, legitimising, and for monitoring the bitcoin network and it's Blockchain.


What do I need to do this type of mining



Did you know, in the beginning years, you could just mine hundreds of Bitcoins with a normal computer or laptop without the use of much resources.

Nowadays, the competition is tough, everyone knows that this is a good way of earning Bitcoins and hence are investing a lot of money and resources into it.

Things you would need are :

A lot of powerful GPU's
Or
Specialised mining hardware know as the ASIC miner
With the combination of a pc or a laptop and a software that helps you to connect to the network.

I would like to let you know that, all these products consume  a lot of electricity and mining using GPU's is no longer suggested or profitable for BTC since you would never end up finding a block and validate it to recieve a reward.


What will I get if I find a block after all this fuss  



You will currently get 6.25BTC if you succeed in doing so.


Ok, so how many times in a day is this reward dropped

You get it everytime a new block is mined, approximately once every 10 minutes approx.


Is it worth investing money on mining and it's hardware


Like I said earlier, there is a lot of competition, there are big organisations that have most of this hashing power, buying one or two equipments won't get you anywhere.

You could however join a pool with your device and try to contribute, if you are lucky, who knows, you may be rewarded.


What is this pool  

Like I mentioned earlier, unless you are contributing to the system/trying to mine using a large number of your own hardware, chances of you finding any reward are 0.

So, to make the most out of what you got, there is this pooling

• You can either try to mine individually
• You can contribute your hashing power and combine it with someone else doing the same task and share profits if you manage to mine a block

What not to do

• On the internet there are a lot of websites that offer you to do mining just by downloading thier software or by asking you to register or by asking you to put in your private keys in their website in return of fixed return. Never go into any of those, these are the ways to scam.
• Never try to invest money into cloud minig unless you know what you are doing and the whereabouts of the company where you are trying to buy some hash power. There are a lot of scam sites, duplicate sites, sites with fake reviews, sites that offer tons of interest on your deposits, sites that promise fixed returns. Remeber mining cannot give you fixed returns and most likely it's a scam.

I hope I haven't bored you guys yet. There may be many mistakes in the topic too, please help me correct them. I haven't gone into technicalities as anyone relatively new would not even understand it and tried to keep it as breif and simple as possible.

Thank you

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[jackg]

Mining is quite risky to do on your own and you'll need a good electricity rate and luck at least to get something from your investment.

Sites like this are normally good at checking your profitibility: https://www.cryptocompare.com/mining/calculator/btc?HashingPower=40&HashingUnit=TH%2Fs&PowerConsumption=1500&CostPerkWh=0.12&MiningPoolFee=1

But you're going to want an initial profit margin of about 25-50% at least (as in for every 0.5BTC you mine, you're only paying 0.125-0.25BTC to mine it in electricity costs imo).

[Febo]

Bitcoin Mining For Newbies

Most of us have a question, how to obtain a good quantity of BTC quickly and from a reliable source. One such way of doing so is by mining it.
This will be a quick walkthrough without much technicalities for beginners.

This two things dont really go well together. If you are a newbie and want to get Bitcoin you should not buy a miner and start mining it. You would register on some exchange and buy it there.  But for not newbies with some interest in hardware it is a fun way to do it.

[stompix]

Uff, it's nice that you're trying, but seriously, you should do a lot more research before trying to help others.

Basically, it is like searching for Bitcoins that already exist in the system.

No, they don't.

You are rewarded BTC for contributing, legitimising, and for monitoring the bitcoin network and it's Blockchain.

Miners are rewarded for solving blocks, nothing else, nodes do the rest.

Things you would need are :
A lot of powerful GPU's

This is not 2011, I don't understand why would you even mention them.

You get it everytime a new block is mined, approximately once every 10-20 minutes.

Just 10, not 20, where did you get that idea?

[goinmerry]

Easier been said than done.

I don't really recommend mining for newbies unless their inner self is truly dedicated to learning how mining works to the point that they are willing to spend big efforts, face the risks, a large number of works, patience, and spending tons of money.

Buying in exchange or what any means is more convenient to these newbies instead of spending money on mining setup.

Appreciate the effort of the OP though for posting this.

[protrader786]

<...>

Thank you for pointing out the mistakes. Some people even now use graphic cards xD.
About 10-20 minutes, I had read it on a few articles. Gotto backtrack them.

[jackg]

<...>

Thank you for pointing out the mistakes. Some people even now use graphic cards xD.
About 10-20 minutes, I had read it on a few articles. Gotto backtrack them.

They're mining xmr if they're using graphics cards...

The consensus algorithm tries to target 10, I think it's closer to about 9 or 9 and a half (or it was at one point) because hash power always increases and its not a fixed reject a block if it comes sooner. Some blocks appear within a second of each other, some can take longer than an hour. The longest I've waited is about 2.

[pakhitheboss]

Mining is pretty risky if you do not have technical knowledge. In my opinion mining of Bitcoin is no more a profitable business considering the investment required and the reward earned. Of course, the competition is also pretty high as big corporates have already invested a lot of money and time in big mining rigs.

[Steamtyme]

You could have boiled your post down to a link to the mining section. Hell reading the pinned posts there would have cleaned this up nicely. Not going to lie some of what you wrote triggered memories for me so it sounds a lot like you just read some out of date sites and decided to try and put it in your own words.

"Mining is the process of adding transaction records to Bitcoins public ledger of past transactions"

This particular sentence appears on numerous sites in that exact form. Given it's something of a definition I'm not calling or reporting it as plagiarism, but I still think you could have done a better job informing yourself so that you could easily have put together an accurate post regarding mining, rather than just a polished looking post of regurgitated information.

Mining Forum mining section should anyone care to look.

Let's strive to post factual and useful information here for the sake of all newbies

[protrader786]

"Mining is the process of adding transaction records to Bitcoins public ledger of past transactions"

Yes, this sentence was updated after informed by stompix that my definition was incorrect about mining.

[Salauddin1994]

Excavation is profitable or mining is important because it ensures transactions and protects the blockchain. Bitcoin transactions without mining will not be guaranteed and Bitcoin will be misused. By mining, you can earn cryptocurrencies without having to pay for it you use crypto crypto currency USD, Euro, JPY, etc. You can trade at an exchange like Bitstamp using another crypto to buy Bitcoin Ethereum.

[protrader786]

whats about cloud mining of every kind of coin ,are the mining platforms made with intension  in one moment to stop paying,or its just their bad buisenes decisions. Pending question  is this kind of mining profitable or ...?

Hello, I haven't invested in this type of venture, hence I am not sure about it. There are some legit websites out there that pay out, but there are a lot of scam websites too which are just made to lure the customers. Making profit off it is very much possible if you own a good amount of hashing power and get rewarded every once in a while.

[Bekuciwu9]

Excavation is profitable or mining is important because it ensures transactions and protects the blockchain. Bitcoin transactions without mining will not be guaranteed and Bitcoin will be misused. By mining, you can earn cryptocurrencies without having to pay for it you use crypto crypto currency USD, Euro, JPY, etc. You can trade at an exchange like Bitstamp using another crypto to buy Bitcoin Ethereum.

This is just nonsense and has nothing to do with the topic. If you have to fill your signature quota and have nothing constructive to say stick to  altcoin section, you will fit there perfectly.

whats about cloud mining of every kind of coin ,are the mining platforms made with intension  in one moment to stop paying,or its just their bad buisenes decisions. Pending question  is this kind of mining profitable or ...?

Cloud mining=scam. Just stay away from this, and if you have some extra money and want to invest, just buy BTC directly.

[finaleshot2016]

I've studied a lot about mining and manage to create a thread in my local about it: Building Mining Rigs

and since GPU mining is already dead in bitcoin, I made another topic regarding ASICs that is being used to mine bitcoin today. -- MINING BITCOIN 2019

Power consumption is the main factor you should understand before having a mining factory, you need to compute the initial and final consumption for you to determine if it's profitable in your country. Here in my country, it's no longer profitable since electricity is too expensive because you also need an airconditioned room to maintain the temperature of those rigs and to avoid daily maintenance.

[sheenshane]

Power consumption is the main factor you should understand before having a mining factory, you need to compute the initial and final consumption for you to determine if it's profitable in your country.

The most important thing is this and OP should include this factor as a good consideration before establishing a Bitcoin mining.
Electric consumption is the most number one factor that the miners suffered these days that's why mining facilities are good in cold places to not to use air-conditioning.

The Best Places In The World To Mine Bitcoin, if you noticed they are all in cold places.

[Apnaworld71]

Very well written,Hopefully many will benefit from this. But I think you have to practice more in this regard.I thought the post was over but I didn't understand.Be able to write in a more simple and beautiful way.

[jademaxsuy]

Hello,

Most of us have a question, how to obtain a good quantity of BTC quickly and from a reliable source. One such way of doing so is by mining it.

This will be a quick walkthrough without much technicalities for beginners.

It was really confusing for me if I will going to start mining bitcoin. At first, I was happy to see that I can able to get btc by mining and the introduction said that it will be quick even a user is not technically inclined.

At the end of the post, it contradict because mining bitcoin would not be easy for there are huge mining pool already that are establish. Getting into 1 or 2 GPU will not compensate to earn a reward from btc mining.

I was a beginning to be happy the first few words I read but theb beginning to upset at the bottom part of the post. Anyway, I still thanks to OP for showing me that I should never invest into mining bitcoin. Then I guess, there is really no quick and easy money in mining.

[proscratcher]

Hi,

Can anyone suggest a good mining website without having to purchase some hardware equipment? Thank you in advance.

[GreatArkansas]

Hi,

Can anyone suggest a good mining website without having to purchase some hardware equipment? Thank you in advance.

Hi, proscatcher.
I think this is different kind of mining, some people called this before a "cloud mining" when there are some website offer to pay them and you deposited Bitcoin will earn revenue per hour/day/month.
This is kinda passive earning which is also RISKY, I don't really trust this kind of service. It's difficult to trust your money on some random people or services online and thinking that they will mine Bitcoins for you.

[Steamtyme]

Hi,

Can anyone suggest a good mining website without having to purchase some hardware equipment? Thank you in advance.

Hi, proscatcher.
I think this is different kind of mining, some people called this before a "cloud mining" when there are some website offer to pay them and you deposited Bitcoin will earn revenue per hour/day/month.
This is kinda passive earning which is also RISKY, I don't really trust this kind of service. It's difficult to trust your money on some random people or services online and thinking that they will mine Bitcoins for you.

Yes. It's cloud mining. Most of the time this is a scam. Even when it's not an intentional scam it generally results in diminished returns and has terms that are unfavourable for you the investor. Most notably that they can cancel the contract if it goes into negative earnings without refunding your initial investment.

Never cloud mine. The only time I suggest renting hashpower of any kind is on the small chance that there is a very favorable rate on nicehash which can happen from time to time. Apart from that you will almost always be better off just buying BTC with whatever you would have put into cloud mining.