never understood bitcoin mining

[hannscryo]

The only ones who are taking profits with mining are the owners of the huge mining farms, for the average Joes isn't profitable anymore.

[cookiemonsterwhat]

Most arent good to mine anymore, unless you have some serious money to put in.

Just like recently the prices dropped so its best to buy when its cheap.

[Wusolini]

hi i never understood bitcoin mining and wnat to ask here
is bit coin mining is done by programmers?
and does this need any experiecne?
please explain for a newbie who dont nknow naything

Hey kingkedi, try this 5 minute tube.
 

[BitCoinDream]

hi i never understood bitcoin mining and wnat to ask here
is bit coin mining is done by programmers?
and does this need any experiecne?
please explain for a newbie who dont nknow naything

You might like to read the following to understand Bitcoin mining in simple terms...


What a miner is doing when it's running is generating millions of hashes every second. A hash looks something like 00000000000000000b8cd4a8a7752ff8785f66232359273f619f6a6cb28d4644. A hash is always 64 characters long. Each block has a 'target' hash, which looks similar to the string of characters above. When the hash that your miner generates has a lower value than the target hash, you win the block. An example with smaller numbers would be a target hash of 0017b5 (note that this isn't an actual hash for bitcoin as it isn't 64 characters long, this is just an example). If your miner generates the hash 0017a5, you win the block. However, if it generates the hash 0017c5, you don't win the block. The order of the 'value' of the characters from lowest to highest value are 0, 1, 2, 3, 4, 5, 6, 7, 8, 9, a, b, c, d, e, f (which is actually hexadecimal no. system). As the difficulty increases, the 'value' of the target hash becomes lower, as more zeroes are added on to the beginning. This makes it harder for your miner's hash to have a lesser value than the target hash, so it gets harder to win the block. Notice how the example target hash above had 17 zeroes at the beginning, while the target hash of the first ever mined block had only 10 zeroes at the beginning.

[Unbelive]

hi i never understood bitcoin mining and wnat to ask here
is bit coin mining is done by programmers?
and does this need any experiecne?
please explain for a newbie who dont nknow naything

Mining is done by your  computer, and mining makes bitcoin possible. you give your computer power to run the net

[EnfoncerQ2]

Its easy. How do we make it so ever btc is unique and every transaction is secured and against multi spending glitches? solving unique math problems. These algorithms need computing power = these people providing the computing power to keep these operations of confirmation and btc creation = miners.

[zimmah]

hi i never understood bitcoin mining and wnat to ask here
is bit coin mining is done by programmers?
and does this need any experiecne?
please explain for a newbie who dont nknow naything

it's easy but the equipment is expensive.

and europe has ridiculous prices for electricity (which is mostly tax, of course). If you really want to make profit with mining, you probably should live somewhere in asia or a developing country where power is dirt cheap.

[Coef]

hi i never understood bitcoin mining and wnat to ask here
is bit coin mining is done by programmers?
and does this need any experiecne?
please explain for a newbie who dont nknow naything

The miner programs (like cgminer and bfgminer) are created by programmers. But to run the programs, you don't need any programming skills but just need some suitable hardware.
You should be able to get your ASICs working very easily and quickly.

[Vslacha]

You have no need to understand. Just leave it and think about BTC trading.

[Zebra]

If you want to know more about bitcoin mining, you can take a look at the following article. http://www.coindesk.com/information/how-bitcoin-mining-works/

You can also take a look at the bitcoin wiki https://en.bitcoin.it/wiki/Mining

[Kakmakr]

Looks like people trying to do this alone is impossible or let me rather say, not profitable.

Are there still people doing this on their own? And are they making any money or are they doing this as a hobby?

[byt411]

Looks like people trying to do this alone is impossible or let me rather say, not profitable.

Are there still people doing this on their own? And are they making any money or are they doing this as a hobby?

Most of the mining is now done by large companies with huge datacentres, since they can get cheaper electricity and wholesale price for equipment.

[Zebra]

Looks like people trying to do this alone is impossible or let me rather say, not profitable.

Are there still people doing this on their own? And are they making any money or are they doing this as a hobby?

For the majority, bitcoin mining is not profitable. But still some are mining for various reasons IMO.

Some are doing it for fun.
Some expect the difficulty will go up at a slower rate in the future.
Some have very cheap or free electricity.
Some have no idea how to calculate mining profit.

[hlynur]

hey OP,
check out documentary thread,
you will find a lot of useful vids that explain all the fundamentals of bitcoin.

imo best in-depth vid is:
http://www.youtube.com/watch?v=Lx9zgZCMqXE
(20min)

[no141]

Don't mine, it's addicting, and makes the electric bills go up 

[Jybrael]

Bitcoin mining isn't that profitable with a normal computer anymore or even with a tricked out one. I would recommend you go on and mine yourself some Alt-coins..trade those against Bitcoins, if you would like to get a couple of Bitcoins. Or get yourself an ASIC miner.

[pereira4]

hi i never understood bitcoin mining and wnat to ask here
is bit coin mining is done by programmers?
and does this need any experiecne?
please explain for a newbie who dont nknow naything

You buy equipment to mine, you use a software and you get back 30-70% of what you invested

In how much time to get your investment back? how do you calculate this depending on your hardware hashing power but difficulty changes to so..??

[BeginToMine]

You can profit with mining if you are an asic maker

[hyphymikey]

If you do not have the means to buy the coins, mining isn't that bad profit wise.

If you wanted to just play around with it, just get one of the usb mining sticks like the antminer u1 or u2. It wont generate much, but they are fairly cheap. You could get a good return if the price goes up!

Look for miners on ebay

[Jybrael]

I am bad with e-commerce ahahaha.