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Cryptocoin mining...anyone doing it?


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I've only very recently got into the game myself. I realise I'm pretty late to the party but there are plenty of coins to mine that are still profitable.

I'm currently mining zcash using Claymore on x2 RX 570s. Hashrate is around 560 H/s on Flypool with 230W total system power draw.

 

Just wondered if anyone here is also an avid miner!

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Can you explain what mining is? I keep hearing this term but never got around to researching what it actually means.

 

T.

 

In the simplest terms possible...you set your PC running a programme that will fully utilise your graphics card 100%. In return you get a cryptocurrency, in this case zcash, paid into your (crypto) wallet. This can be exchanged for bitcoin or US dollars.

 

Here is a better explanation pulled from https://www.benzinga.com/general/education/17/08/9953629/cryptocurrency-mining-what-it-is-how-it-works-and-whos-making-money-

 

Mining

Cryptocurrency mining includes two functions, namely: adding transactions to the blockchain (securing and verifying) and also releasing new currency. Individual blocks added by miners should contain a proof-of-work, or PoW.

 

Mining needs a computer and a special program, which helps miners compete with their peers in solving complicated mathematical problems. This would need huge computer resources. In regular intervals, miners would attempt to solve a block having the transaction data using cryptographic hash functions.

 

Hash value is a numeric value of fixed length that uniquely identifies data. Miners use their computer to zero in on a hash value less than the target and whoever is the first to crack it would be considered as the one who mined the block and is eligible to get a rewarded.

 

The reward for mining a block is now 12.5 bitcoins.

 

Earlier, only cryptography enthusiasts served as miners. However, as cryptocurrencies gained in popularity and increased in value, mining is now considered a lucrative business. Consequently, several people and enterprises have started investing in warehouses and hardware.

 

As enterprises jumped into the fray, unable to compete, bitcoin miners have begun to join open pools, combining resources to effectively compete.

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I've only very recently got into the game myself. I realise I'm pretty late to the party but there are plenty of coins to mine that are still profitable.

I'm currently mining zcash using Claymore on x2 RX 570s. Hashrate is around 560 H/s on Flypool with 230W total system power draw.

 

Just wondered if anyone here is also an avid miner!

 

Not done any mining but doubt it's beyond me, however I have invested in Eth and LTC via Coinbase and seen some steady gains from a meagre investment!

 

In the case of mining, on your setup for example how long does it take to mine a Bitcoin? Or is there more to it than simply setting a up a computer with a couple of highend GPU to run software?

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Not done any mining but doubt it's beyond me, however I have invested in Eth and LTC via Coinbase and seen some steady gains from a meagre investment!

 

In the case of mining, on your setup for example how long does it take to mine a Bitcoin? Or is there more to it than simply setting a up a computer with a couple of highend GPU to run software?

 

Mining bitcoin, at this stage, is basically impossible unless you have hugely expensive custom built ASICs chips. With my current set up it would take something like 1000 years to mine a whole block!

Mining zcash it would take 25 years to mine the equivalent of 1 bitcoin. That isn't the plan though. Selling zcash while it's low then selling the bitcoin while it's high can make insane returns.

People who recently invested in tangle or litecoin saw 800% returns!

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So it's using GPU processing power to solve computing tasks, but what is the point of it all? I do understand that now you simply join a pool of miners and together all the GPU power combined can be used to solve math problems, but I still cannot get what it's used for in the end. Also who issues the zcash for the work? and where does it come from? Looks like I'm 10 years behind on cryptocurrency...

 

Sorry, but it all seems made up to me, unless of course there's something I'm missing.

 

T.

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So it's using GPU processing power to solve computing tasks, but what is the point of it all? I do understand that now you simply join a pool of miners and together all the GPU power combined can be used to solve math problems, but I still cannot get what it's used for in the end. Also who issues the zcash for the work? and where does it come from? Looks like I'm 10 years behind on cryptocurrency...

 

Sorry, but it all seems made up to me, unless of course there's something I'm missing.

 

T.

 

Basically right now the main use of zcash is to trade for bitcoin (btc) I think. How popular something is to mine, how much of it is mined and how many people are trading it all factor in to it's price vs btc and vs USD.

You can use things like zcash it invest in altcoins like cypterium but that is really at the limit of my understanding. Crypterium tokens would be accepted as payment anywhere where visa/mastercard is so you could use any cryptocurrency to buy anything. That's the plan anyway.

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Basically right now the main use of zcash is to trade for bitcoin (btc) I think. How popular something is to mine, how much of it is mined and how many people are trading it all factor in to it's price vs btc and vs USD.

You can use things like zcash it invest in altcoins like cypterium but that is really at the limit of my understanding. Crypterium tokens would be accepted as payment anywhere where visa/mastercard is so you could use any cryptocurrency to buy anything. That's the plan anyway.

When this house of cards comes down or its hacked , then the tax payer better not be bailing this one out .

Someone was talking to me about buying and breeding virtual cats to make money with via another virtual currency ...

I sometimes wonder if the human race has run put of useful things to do ( while there is hunger, poverty , and war in the world, i scratch my head at people buying rare breed virtual cats for £1000's )

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When this house of cards comes down or its hacked , then the tax payer better not be bailing this one out .

Someone was talking to me about buying and breeding virtual cats to make money with via another virtual currency ...

I sometimes wonder if the human race has run put of useful things to do ( while there is hunger, poverty , and war in the world, i scratch my head at people buying rare breed virtual cats for £1000's )

 

I very much acknowledge the nonsensical way in which we have decided to carryout our existence as a species. Trump, brexit, fake news, social media manipulation, etc etc. However, when the only economy left standing at the end of it all is a crypto one then I don't want to be left standing with my trousers around my ankles.

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I can sort of understand how it came about, ie. a token to reward someone for their efforts in mining, but how it correcsponds to real currency is beyond me. Maybe I'm just thick, but I simply don't get it, I can't really see how it relates to real money and any value whatsoever, seems like the only thing driving it up is simply people wanting them to go up.

 

 

To me it's a bit like youtube and youtubers cashing in on ads...

 

 

T.

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When using your normal paper or metal currency, you can transfer your money virtually ( i.e your employer tells their bank to transfer some currency from their account to yours) between banks, also like when you shop online or do a bank transfer. The banks maintain huge infrastructure to process these transactions.

 

Now with crypto currency this infrastructure is decentralized by having miners process these transactions. They are rewarded by a bit of the currency they are processing.

 

The view that our normal every day money/currency is safer is true only to a point. Our currency is no longer secured against gold reserves so the Bank of England backs the currency. If the economy was to take another dive slightly more serious then the last one, the government may not be able to bail out the banks, once banks start going out of business the currency will devalue very fast in international trading markets, which will then devalue the currency even more......

 

I was on another forum (not coffee related) when Greece was having financial difficulties, there was a Greek member selling some forum related items and he would only accept payment in paypal or bitcoin. It was the only way to move money and pay for things when the banks stopped allowing people to withdraw physical currency in the country.

 

This is one of the reasons that crypto currency has become popular, another is the belief that it offered anonymity (which it appears it doesn't any more).

 

Mining it seems to be a waste of time unless you are happy waiting for 10 months to make back the price of your graphics cards.

 

Having said all that I wish I had bought some bitcoin when it 1st came out..........

 

I might do the more volatile ones just for fun.

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Mining it seems to be a waste of time unless you are happy waiting for 10 months to make back the price of your graphics cards.

 

My system will pay for itself in 4 months including electricity costs. Zcash is going up vs btc....Use btc to buy crypterium = win

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I can sort of understand how it came about, ie. a token to reward someone for their efforts in mining, but how it correcsponds to real currency is beyond me. Maybe I'm just thick, but I simply don't get it, I can't really see how it relates to real money and any value whatsoever, seems like the only thing driving it up is simply people wanting them to go up.

 

 

To me it's a bit like youtube and youtubers cashing in on ads...

 

 

T.

 

You breed cats and sell em .....

Really we are pointless, people used to make things didn't they.

https://techcrunch.com/2017/12/03/people-have-spent-over-1m-buying-virtual-cats-on-the-ethereum-blockchain/

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My system will pay for itself in 4 months including electricity costs. Zcash is going up vs btc....Use btc to buy crypterium = win

Unless North Korea hack your balls and bitcoin...

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Crypto Mining = goldrush. The language and hysteria is the giveaway. It's a kind of pyramid scheme but with no real product at the heart of it. Emperor's new clothes. Those who got in early will have made their money when it all goes tits up.

Rocket Giotto Evoluzione v2, Eureka Zenith 65E, Niche grinder, Pharos grinder with VoodooDaddy mods, Eureka MDL, Torr Goldfinger, Smart Tamp. Various coffee stuff.

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When using your normal paper or metal currency, you can transfer your money virtually ( i.e your employer tells their bank to transfer some currency from their account to yours) between banks, also like when you shop online or do a bank transfer. The banks maintain huge infrastructure to process these transactions.

 

Now with crypto currency this infrastructure is decentralized by having miners process these transactions. They are rewarded by a bit of the currency they are processing.

 

The view that our normal every day money/currency is safer is true only to a point. Our currency is no longer secured against gold reserves so the Bank of England backs the currency. If the economy was to take another dive slightly more serious then the last one, the government may not be able to bail out the banks, once banks start going out of business the currency will devalue very fast in international trading markets, which will then devalue the currency even more......

 

I was on another forum (not coffee related) when Greece was having financial difficulties, there was a Greek member selling some forum related items and he would only accept payment in paypal or bitcoin. It was the only way to move money and pay for things when the banks stopped allowing people to withdraw physical currency in the country.

 

This is one of the reasons that crypto currency has become popular, another is the belief that it offered anonymity (which it appears it doesn't any more).

 

Mining it seems to be a waste of time unless you are happy waiting for 10 months to make back the price of your graphics cards.

 

Having said all that I wish I had bought some bitcoin when it 1st came out..........

 

I might do the more volatile ones just for fun.

 

So is that what the GPU processing speed is used on? I've read in a few places that the GPUs are used to solve complicated mathematical problems, but I couldn't find more info on this. Surely you don't need so much GPU power and infrastructure ie. all the mining PCs to run all the transactions as it's not that commonly used?

 

So who makes the crypto-currency then? I've read that inflation isn't a problem as it's limited in quantity, but surely someone must've made the first however many they did. Also for this to work as a currency, there must've been a group of people who agreed on the use of bitcoins and they started selling things to each other? how else would you even attach a monetary value to this made up entity? it's a bit like saying that instead of £s I'll pay you in potatoes, then find a group of say 10 people who do this and you can start exchanging things for potatoes. If you do this for a long time and you have members who want to push the value up, your potatoes might get you more, say a car instead of the used PS4 which they got you a year ago, but it's still potatoes without any meaningful value. Isn't this what's happening here (with the added element of online transactions)? I guess my main question is, how do you link the crypto-currency to the real world?

 

I guess all you really need is for a lot of people to stop taking bitcoin and then you are just left with a lot of nothing. Money might drop in value, but the government is still obliged to take it, whatever the value is, here there's no obligations. Am I correct to think that at the moment, the only way to convert crypto-currency to real money is to sell to other people seeking it? if so that's your "potato" group from my example above.

 

T.

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In answer to the first post..... I once did but not any longer. at the time it took about a week to get 1BTC then the price fell and it was costing more to make than the value. We are talking radeon 5750 era so I made a few then stopped, Secured the wallet, put the drive away safe with the thought "when it gets to £100 per I will buy a new rig". Still have them and if they are worth anything when I retire in 5 years then guess what :D

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In answer to the first post..... I once did but not any longer. at the time it took about a week to get 1BTC then the price fell and it was costing more to make than the value. We are talking radeon 5750 era so I made a few then stopped, Secured the wallet, put the drive away safe with the thought "when it gets to £100 per I will buy a new rig". Still have them and if they are worth anything when I retire in 5 years then guess what :D

 

One bitcoin is worth $18K at the moment. A month ago they were worth $4K each....

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To those that think it's a novel idea, I'd point out that there are other "currencies" that are used but have no real backing. These tend to be local "currencies" where the supporters argue it helps keep the money local. Those, just like the crypto-currencies have no financial backing (OK, £GB is not gold-standard but it is backed by a government, ditto the other national currencies).

All of theses crypto-currencies have no direct financial value and are probably best thought of the same way we think of company shares. If somebody else wants the shares they have value, if nobody else wants them they have zero value, but at the end of it there are no physical items of any real value which is directly associated with it. You can make gains by purchasing at a low value and selling at a high value (not necessarily in that order) It could also be likened to the in-game prizes of many video games, or if I were really being cynical.... https://en.wikipedia.org/wiki/Disney_dollar (except you don't have option to buy-low sell-high for these).

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The whole thing is fought with "Danger" from a serious investment point of view but as part, perhaps a small part, of a portfolio I see no greater harm than a number of traditional investments. It depends entirely how risk averse you need to be. That said my father's shares in Barclays didn't do him a lot of good. They are now worth pennies and I'll bet he thought they were safer than that

 

One snippet of interest to me was it is said that 40% of BTC holdings are in the hands of a very few people. If this is so then they can control the market to some extent

 

LTC and ETH seem reasonably established but there are a whole bunch of others that could amount to anything.

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