With Bitcoin mining difficulty increasing all the time it is important to choose the right pool to mine at if you are going to mine with your own hardware. If you rather choose to watch to outsource the actual mining process you might want to have a look at Bitcoin cloud mining.
In this 4-minute video are some insights from Bryan Hellard about what is the best bitcoin mining pool and how to get best payouts.
Bryan also takes a look at some current (2013) hardware there was so it’s also sort of a blast from the past.
Quite hilarious how he predicted that the mining equipment won’t be getting much better from there. But hey, what do you know ? 🙂
Enjoy the vid!
Which mining pool are you logged into? Currently, I am using the Bitminter pool.
I have used BTCGuild in the past but I likeBitminter because it’s the easiest to set up.
It’s a small pool; it has 1 or 2% of the total network, I think, so some of the bigger ones will be like 40 or 45.
So people say if you join a bigger pool you’ll get more consistent payouts.
A smaller pool is more sporadic.
You might get a bunch of payouts in a row and then nothing for a while, in the long run, they average out to about the same.
This software is open source, so it will run on anything.
So, this Bitminter one, I am running it on windows right now, and it’s this nice little java app that you can download and you got it all setup and way it goes.
But another popular program is CG Miner, soI’m running that on Linux, cause usually, usually, I don’t have this connected to my computer, I have it all setup in the mining brake, and I have a little raspberry pie, this little computer, that runs it.
So this thing consumes like 5 watts of power.
This raspberry pie is a computer, so you have your two USB ports, you can plugin a keyboard and a mouse, up here your HDMI port so you can plug it into a screen, and it all runs off an SD card.
So this by itself is a computer.
This has a version of LINUXon it, and then that runs the CG Miner program.
So there’s different software for all different machines, but most of them are pretty compatible with everything.
It acts as a hub.
These things, these little block Raptors are the things that do the work, and then you just run it through a computer, or raspberry pie or whatever, and then that sends it off to the pool to have all the work be compiled to solve the block.
The computer itself is doing nothing, except acting as a transfer point; it’s just the eruption that do all the work.
Definitely, ASICs is the way mining is gonna go.
Cause ASIC is an application specific integrated circuit, so someone decided: “I want a chip that does nothing except mineBitcoins.
” So it can’t do anything else, but it mines Bitcoins really fast.
So, CPUs were not very efficient because they do so many things, and then, graphic cards were better, because they do parallel processing.
So CPUs are very linear, one thing at a time, graph cards do a whack of things at the same time, that’s why they way faster, but now that the ASICs do nothing but mine coins, they are the fastest, by far.
As with any computer chip, you are limited by transistors’ size.
If you make a smaller transistor, if you pack more on a chip, you can do more calculations for less power.
The newest ones that are coming out now, they are 28 nanometers.
ASICs are jumping to the best computer chips they can do.
As it stands, I don’t think mining cards are gonna get much better.
the difficulty will keep jumping because people are still ordering these, so it’ll keep jumping and jumping and jumping as they all turn on, and eventually people will decide,ok it is not worth it, and the difficulty will come plateau.
This difficulty rising, it’s a bad thing for investments, because it’s harder to make money back, but for the network as a whole is a better thing.
The higher the difficulty gets and the more miners, and faster miners that people turn on, means the entire network is more secure.
Because as difficulty gets higher, it means all the transactions are more secure, and they are better encrypted.
Pooled mining is mostly; you take all the hardware, so you have all your hardware, and then point it at someone’s IP address, which is the pool operator.
Whoever solves it, will be the pool operator.
So the pool operator themselves could just take it, but then they’d lose reputation, and no one would work with them anymore.
So the pool operators take a tiny percentage.
And Bitminter being a small pool, it’s only one or two percent of the pool.
And even still it takes a hundred terra hatches.
So its pool operator, taking in one percent of that, or two percent, gives him one or two Tera hashes for free.
So he wouldn’t want to be dishonest.
Pool operators are already doing pretty well for themselves.
What do you do when you are not mining?I go to school at BCIT doing robotic engineering.
Hey hey hey. It's Ville and welcome to my blog. I am a tech enthusiast and always looking for ways to generate new income streams. At the moment Bitcoin cloud mining is one of the most promising ones and that's why I created this website. Hope you like your stay. If you want a quick start guide about making passive income with cloud mining check out this guide.