Understand bitcoin Mining involves running through extremely complex operations, the nature of which require graphical processors in
order to complete them in anything approaching a reasonable timeframe. Even with a decent gaming PC with above average specifications, your rate of mining (i.e. the number of coins you can expect to earn in a given time) will be far outweighed by the cost of you doing so (primarily in electricity costs, and secondarily by depreciation in your hardware).
Even if the value of the coins has recently jumped up to a new high – this won’t improve matters, because the complexity of the operations tends to increase in-line with the value of the currency. The only way you can earn big from home mining is to be out of pocket for the electricity costs now, in the hope that the few bitcoins you earn are worth significantly more in the future.
So, lets just put
that in plain words yes you can use your computer to “MINE” Isn’t that amazing? You fire up your computer start the program and it spits Bitcoin back at you. And yes, this computer or laptop is known as a ‘mining rig’. There are special pieces of hardware you can buy that are dedicated to this mining function, one idea being what’s called an ASIC miner on a USB. These can be achieving mining rates of over 300m hashes/ sec. Don’t know what that means? Never mind buy one fire it up and start mining. If Bitcoin prices rice to the eventual $10,000 that pundits predict you will cash in.
Always remember to calculate the cost of mining and it’s profits first before deciding on mining for Bitcoins/crypto coins or if you should be trading instead.
Here’s a note to remember: Mining = Get coins by paying for electricity and mining rig. So be sure that you calculate how long it is before you actually profit.
For example, at the time of writing an estimated cost in my country, the Cost of a mining rig (with 2 GPU cards – R9 280x) is around $900 (give or take). So if the electricity bill is $40 per month… and getting about 0.015 Bitcoins a day from (middlecoin.com), one would be getting around 0.45 BTC per month.
So if price of BTC is $650, 0.45BTC = $292.5 per month. Minus the electricity bill, you get $252.5 per month. At a cost of $900, it will take you roughly 3 and a half month to break even with your cost, and then after that, it’ll be estimated $252 profits per month.
Note that the calculation above may vary in a different country and different mining rig builds and the cost of hardware available in your country.
Of course, if you want to earn more, the general way to do this is to Build MORE rigs with more Mining power (more mega hashes).
The above examples are based on a GPU mining rig. For ASIC miners, you may pay more for the ASIC hardware but the good thing is, it produces less heat and noise and possibly consumes much lesser power as well.
Again do your calculations before you choose the right mining rig that you want to invest in.
WARNING: As time goes by and more and more bitcoins are mined it will become harder and harder to mine successfully for profit.Which is why you should get started asap. Connect your Mining Rig to a client such as CGMiner.
“The real fun part starts here calculating your profit.”
Configure your mining rig. Note: you can choose to mine Bitcoins or Cryptocurrencies.
For Bitcoin mining, it is recommended to join Bitcoin mining pools to maximize your mining efforts.
For cryptocurrencies, you can connect your miner to services such as http://www.middlecoin.com/ for automated mining and payments in Bitcoin.
Calculation of Profit: The real fun part comes here.
Do your homework and work out the costs involved in setting up your new hardware mining rig. Then use a Mining calculator like this one at http://btcinvest.net/en/bitcoin-mining-profitcalculator.php
The profit and respective time are dependent on various parameters like power consumption, hash rate, cost of your mining rig or equipment used and the actual Bitcoin price. This largely depends on
the accessibility of network. The difficulty level of the network is established by the unit metric which decides solutions
Note: The general rule is to mine if the prices of the coins that you mine are more than your costs which are your electricity cost and the cost of your mining rig. Also, go to btc-e.com (or any other Bitcoin sites with the price) to take a look at the current Bitcoin price.