Bitcoin

Mining for Bitcoin – My First Attempt

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Today I decided to venture to the next step and mine some bitcoin.  In order to make money in bit coin you basically have two options (1) buy bitcoin, which is the most common way or (2) mine for bitcoin.  Granted there are few more ways but the first two are more seem like the logical choices.  I’ve already bought some, which is great.  However, when you buy you are spending x dollars and just hoping that the price will go up.  But what if you could spend that same money and actually accumulate (mine) bitcoin on an ongoing basis?  Heck yeah!

How do I mine?

First you research how to mine.  Quickly you read about special mining rigs (but we’ll get to that in a later post).  In the meantime you see that most miners use GPU’s instead of CPU’s (originally they used CPU’s but GPU’s can provide much more power).

Any computer that outputs to a screen is going to have a GPU, so technically I just need a computer.  Hey, I have an extra computer (check).  The next thing I need is some mining software.  What’s mining software?  To find out let’s go back to google.  After a few searches you find some and here’s the best part, it’s free.  Sweet!  So far this sounds easy.  Not only do I have 2 extra computers but I also have a mac mini, and a couple of older laptops.  Now I’m going nuts and I start to wonder if I can use my XBox?  This is looking great…. let’s make some money and retire early!!!

Mining software?

First, things first.  I need to get the mining software installed and start mining.  My google search lead to MinerGate (http://minergate.com).  The software is pretty straight forward and easy to use.  However, I quickly learned that my computers weren’t very powerful.  I couldn’t understand it.  One of my machines has a GPU that can power 4 monitors.  Surly that one would produce some quality output, right?  As it turns out you need really, really powerful computers to do some mining.

MinerGate Software

MinerGate Software

To understand how ill equip my best computer was, take a look at the image to left.  I got one lousy star.  That’s it.  Granted my graphic card is a couple of years old, but I remember shelling out around $450 for it.  So much for making the big bucks in mining.

However, being the glass half full kind of guy, I decided to let it run any way.  I selected all the defaults and let the software run.  Using the default it automatically mines the currency that had the highest exchange rate during the last hour.  That sounds fair I thought.  After looking at the screen run, I realized I was mining something I didn’t know anything about.  I was mining Monero (XMR).

WTF is Monero?

What’s Monero (XMR)?  I was asking myself the exact same thing.  I thought I would be mining bitcoin or litecoin or something I’ve heard of.  As it turns our Monero is a new up-and-comer in the altcoin arena.  At this time it’s trading at about the same price of litecoin at $373.67  per XMR (per Monero coin).  Ok, let’s mine Monero.  I guess I need to get a Monero wallet.   How do I do that?  Luckily it’s pretty straight forward.  For more information on creating a wallet see my post on “Creating CryptoCurrency Wallets”. (coming soon).

 

I’m officially mining.

To recap, my PC blows, I’m mining something I’ve never heard of but some how I feel a sense of accomplishment.  I’m actually mining.  Now that I’ve experienced this, I’m going to let my machine run for a few days and see how much I can earn.  Check back soon to find out how it goes.  Until then, Happy Mining!

 

Quick update

My GPU really blows.  After some research it seems like GTX 1080ti was the best choice.  It’s around $800, which is a more than I wanted to spend but I think I’ll give it a shot anyway.  If you interested in it as well, there’s some quick links to amazon listed below.

 

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