Mining Bitcoins

Discussion in 'Politics' started by ptlarz, Nov 11, 2014.

  1. For a while now I have known of bitcoins but never known anything about how they work; however I have always been very interested. Today I decided to do a bit of research on my own. I was particularly interested in the aspect of mining. I was able to understand how the coins are mined, but I still don't have the concept firmly grasped. I was wondering if anyone on this site might have past or current experience mining? If so is it worth it to mine? Do you mine individually or on a farm? What technology does your mining for you? I realize this might be in the wrong thread but this is where I saw other things about bitcoins..
     
  2. i don't think this is the right forum...
     
    but to answer your questions.
     
    mining bitcoins is very expensive (electricity and hardware). you would be looking to invest thousands up front if you want to get a decent mining setup. to make the long story short, unless you have serious up-front budget you are not going to break wattage cost vs. bitcoin value. most likely you'll just spend a ton of money on your energy bill.
     
    there are companies out there that will allow you to buy a % in their mining operation. to me that seems a bit easier, because for the same amount of initial investment let's say $5K, you can actually get some decent return. the companies are supposed to be legit, but you never know. bitcoin community is pretty small, so it's relatively easy to find out if someone's claims are legit. 
    typically such mining companies constantly upgrade hardware and use the latest technologies and algorithms to get the best performance. (doesn't meant they can't just collect 100K from everyone and pack up and you'll never hear from them again).
     
    and the topic gets even more interesting/complicated when you start looking into alt coins. (dodge coin, lite coin, pot coin, etc.)
     
    for now just read some blogs/forums until you figure out the best way to approach your mining. 
     
  3. If you are interested in mining as a symbolic gesture to maintain the decentralized consensus, run a full node through the qt client instead.
    If your intent is to make a profit, then I am afraid that train left the station at the end of 2012.
    However, depending on how hardware manufacturers and core developers approach the protocol in the future, the average hobbyist may see another reasonable opportunity to compete for the payload of uncovering a block.
     
    Yet this is merely whimsical conjecture at this point, as mining has never been more centralized and cost-prohibitive for the individual. To achieve a return to more decentralization in the mining structure would require a huge overhaul of the protocol, namely switching to Proof of Stake, as well as a moral obligation on behalf of manufacturers to not structure their hardware releases/deliveries to bleed their customers dry.
     
  4. Not to mention, from a financial standpoint, the risk return tradeoff of such a risky investment just simply isnt there

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