HOW TO MINE: Ethereum, LiteCoin and other AltCoins

FingerDub

FingerDub

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Jan 8, 2016
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#1
If you are going to post that this is BS or wont last, get out now. Sorry I have to say that but the crew here cannot read. I am not interested in any negative or opposite opinions, only how and what people are doing in this endeavor.

There was a previous thread on Bitcoins. It's time to spread that topic out. This "industry" has become bigger than bitcoins alone. There are tons of other currency and people are making mad money simply building machines to mine them, and to speculate on their worth. I truly have no idea what is going on yet or how these machine mine these currency's. Can anyone explain this industry?????

Someone I follow just bought 2 of these. Buy The Powerful Antminer L3+ ASIC Litecoin Miner - Bitmain

Not sure why you need a specific machine or what it does...ANYONE?

I'm trying to read this and get ahead and see what is going on here. How to Mine Litecoin - A Guide on Litecoin Mining and Other Altcoins
 
#2
You need high end graphics cards to do it, and if you could afford it, it used to be worth it. Now that they have specialized mining computers, its a lot harder for regular people to make any real money doing it unless they jump on a particular cryptocurrency in nascent stages. One of my drummers has a computer farm somewhere where it mines all day and provides a good portion of his already sizeable income.
 
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#4
FingerDub said:
I truly have no idea what is going on yet or how these machine mine these currency's. Can anyone explain this industry?????
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Okay, but..
FingerDub said:
I am not interested in any negative or opposite opinions, only how and what people are doing in this endeavor.
Click to expand...
You can't want to learn about it and only hear the positives. Well you can, but not if you care about truth. I have no idea what this even is and if I was inclined to learn I wouldn't start with a bias about it.
 
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#5
Bitcoins, Ethereum and LiteCoins all use different algorithms to "solve" script blocks.
Because they all do this differently it is best to use equipment designed for each.

BTC uses CPU intensive processing. LTC and ETH use GPU processing.
It is possible to use CPU's for LTC and ETH, but it is very inefficient. The architecture of modern GPUs (Graphics Processing Units) can handle these scripts much faster.

The Antminer you have mentioned was designed specifically for LiteCoin. It is far more powerful and energy efficient than all of its predecessors. AFAIK, all production of this machine is oversold for 2+ months, so no stock available.

Currency speculation is risky. Do tons of research and make an informed decision.
 
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#6
Gorn said:
Okay, but..

You can't want to learn about it and only hear the positives. Well you can, but not if you care about truth. I have no idea what this even is and if I was inclined to learn I wouldn't start with a bias about it.
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You seem to have a problem with authority. I made it clear that I only wanted to know how and what people were doing to mine the coins and what the industry is exactly and wasn't looking for opinions. Yet, you had nothing informative to add either way, and still found a way to pipe in, doing exactly the opposite of what I was looking for.
 
#7
GeneralElectric said:
You need high end graphics cards to do it, and if you could afford it, it used to be worth it. Now that they have specialized mining computers, its a lot harder for regular people to make any real money doing it unless they jump on a particular cryptocurrency in nascent stages. One of my drummers has a computer farm somewhere where it mines all day and provides a good portion of his already sizeable income.
Click to expand...
charlie monroe said:
Bitcoins, Ethereum and LiteCoins all use different algorithms to "solve" script blocks.
Because they all do this differently it is best to use equipment designed for each.

BTC uses CPU intensive processing. LTC and ETH use GPU processing.
It is possible to use CPU's for LTC and ETH, but it is very inefficient. The architecture of modern GPUs (Graphics Processing Units) can handle these scripts much faster.

The Antminer you have mentioned was designed specifically for LiteCoin. It is far more powerful and energy efficient than all of its predecessors. AFAIK, all production of this machine is oversold for 2+ months, so no stock available.

Currency speculation is risky. Do tons of research and make an informed decision.
Click to expand...
So how exactly do you make money from it? When a block is "solved" what happens?
 
#8
I'm curious about this too. Mostly from the perspective of "what the hell is all this about". It's all very cryptic and strange to me that you have a little computer sitting somewhere creating electronic bits of information that are somehow worth money in real life to someone. So weird.

Either way, I'll stay tuned in to try to learn something new today.
 
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#9
FingerDub said:
So how exactly do you make money from it? When a block is "solved" what happens?
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You magically have new money to spend. It makes no sense to me, but crypto-currencies are basically an agreed-upon fiction of value. Still doesn't make much sense to me that you can "create value" merely by burning a whole bunch of electricity solving manufactured math problems. But then, our "real" currencies are in essence just as fictional any more (not based on anything with real value).
 
#10
FingerDub said:
So how exactly do you make money from it? When a block is "solved" what happens?
Click to expand...

When a block is solved you may be asked for proof of work. When the PoW is confirmed your coinwallet is debited for whatever the block is currently valued at. This is not cash. All remuneration is provided in the native coin currency.

These mining operations are very fluid and all values are always changing.
  1. Mining efficiency is affected by the "difficulty level". The difficulty for any coin always increases as more processing power is employed - i.e. the more people doing it, the harder it becomes
  2. The exchange rate of these coins fluctuate hourly, nevermind daily or weekly
  3. There is a change coming at some point in the way that they determine who gets credit for "the work". Currently the pay is given based upon Proof of Work. At some point they will change to Proof of Stake. I am not knowledgeable enough to explain the difference, but word on the street says that this will be detrimental to the hobby miner
 
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#12
Frank Tuesday said:
Finger doesn't want any negative opinions. You should probably delete that last line so he doesn't blow his top. Don't question his authority.
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I can see his point on this topic in particular.

The vast majority of web pages and forums that I used to research this topic were overwhelmingly negative. So negative in fact that it became a test of my patience at times to carry on plodding through the comments to get the actual information I was seeking.

Believe me, the controversy surrounding crypto-currency rivals the P with flats vs Jazz with Rounds dust ups. Serious business here.
 
#13
Frank Tuesday said:
Finger doesn't want any negative opinions. You should probably delete that last line so he doesn't blow his top. Don't question his authority.
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Yet another trouble maker. I made it clear that I wanted to focus of the topic to be factual and about the actual process. Why do you have such a problem with that?
 
#18
Gorn said:
I'm sorry for disrespecting your authority. For some reason I didn't recognize it's existence but now I know better.
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If you used logic, you could go back to the original point, you know, the one where clear boundaries were set about the idea of the thread, that you ignored? Don't blame me, man up and stop crapping in every thread you come across. You openly admitted you know nothing about the topic. Please go now.
 
#19
FingerDub said:
If you used logic, you could go back to the original point, you know, the one where clear boundaries were set about the idea of the thread, that you ignored? Don't blame me, man up and stop crapping in every thread you come across. You openly admitted you know nothing about the topic. Please go now.
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Yessir Mr. Fingerdub Sir. Perhaps some sort of lapel pin or badge indicating your authority here might prevent such mishaps in the future.
 
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