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<blockquote data-quote="Greenhost" data-source="post: 678" data-attributes="member: 20"><p>When you’ve gained confidence in your mining ability and understanding, you can make the leap to building a dedicated Mining Rig. This will require an investment in money and time to build, but you’ll see big gains in your hashing capacity, and BTC in the bank!</p><p>A less technical way to be involved with Bitcoin mining is to invest in a mining company, or buy mining bonds. There are exchanges such as GLBSE where you can purchase shares of ownership in a mining operation run by an experienced operator. He or she will be well versed in the technical details involved in maintaining and growing a large scale mining operation. When you buy bond shares you are funding the creation or growth of the enterprise. The Bond offering will have specific details outlining the dividend payment plan or other method of deriving revenue from your investment.</p><p>Why would a person rent hashing power or buy into a mining bond?</p><p>There are actually several reasons to go the investor route, rather than buy BTC outright, or start mining on your own. The future ratio of how much money you can earn with a given hash power could become more favorable, so a long-term contract could make sense. Mining pool operators wanting to attract miners to their pool may take this approach. A person holding other types of cryptocoins could utilize rented hashing power to force difficulty and price higher in that currency.</p><p>Finally, you can always just buy into Bitcoin yourself. There are several ways to do this, perhaps the easiest is to simply do a transaction with a company like SpendBitcoins.com, where you can purchase a MoneyPak at major retailers or even online and then use that to get Bitcoin sent to you instantly. Owning Bitcoin as an investment means you will want to watch the value of Bitcoin against your home currency – hopefully it will go up and your investment will be making a profit!</p><p>Bitcoin is volatile! That means price can rapidly go up or down quite a lot. In fact, in the time of writing this eBook, BTC has already risen to $9.50 USD/BTC – that’s nearly a 100% increase! You can play the market with your BTC if you want to try it. Volatility can give you opportunities to sell your BTC and then buy it back again when price drops (if price drops). This currency trading can be fun, profitable or stressful if you get the timing wrong!</p><p>What kind of results can you expect? You’ll quickly realize CPU mining has been far surpassed by new technology (this may have resulted in a difficulty spike that drove BTC to over $30USD/BTC! If you are still interested in mining with your CPU, you can mine LiteCoin as an alternative, hoping that it too may achieve a stable value – and heck its pretty fun. With an investment in GPU hardware you’ll see much more mining capacity, however most ROI analysis looks for the hardware to make a profit against the power it consumes. Depending on what you pay per Megawatt, GPUs may not be profitable. You can go to your local PUD website to look up your rate for electricity. You are likely to end up with a mix of GPU and newer technology such as FPGA (dedicated programmable chips that have recently been brought to market). Either way, you can expect a big learning experience, some excitement, some disappointment – but definitely an Adventure in Bitcoin Mining!</p><p></p><p></p><p><strong>Chapter 2 – The nuts and bolts of mining BTC</strong></p><p><strong>History of Bitcoin</strong></p><p><strong>Who is Satoshi and Where is He Now? (Bitcoin Wiki)</strong></p><p><strong>Satoshi Nakamoto is the founder of Bitcoin and initial creator of the Original Bitcoin client. He has said in a P2P foundation profile[1] that he is from Japan. Beyond that, not much else is known about him and his identity. He has been working on the Bitcoin project since 2007.[2]</strong></p><p><strong></strong></p><p><strong></strong></p><p><strong>His involvement in the Bitcoin project had tapered and by late 2010 it has ended. The most recent messages reportedly indicate that Satoshi is “gone for good”[3].</strong></p><p><strong></strong></p><p><strong></strong></p><p><strong>His identity and nationality are unknown. The few bits of information available[1] about him point to Japan, he never wrote a single line of Japanese, the Bitcoin client has no Japanese version and there is no Japanese page on bitcoin.org.</strong></p><p><strong>He is entirely unknown outside of Bitcoin as far as anyone can tell, and his PGP key was created just months prior to the date of the genesis block. He seems to be very familiar with the cryptography mailing list, but there are no non-Bitcoin posts from him on it. He has used an email address from an anonymous mail hosting service (vistomail) as well as one from a free webmail account (gmx.com) and sends mail when connected via Tor. Some have speculated that his entire identity was created in advance in order to protect himself or the network. Perhaps he chose the name Satoshi because it can mean “wisdom” or “reason”.</strong></p><p><strong></strong></p><p><strong></strong></p><p><strong>Hashes, Nonces, Shares and The Block Chain – Genesis of the Bitcoin</strong></p><p><strong>If you are new to cryptology, all these terms are new as well. Don’t get overwhelmed – its best to experiment with a CPU mining client while you try to understand how this works. You will be able to see the primary components that make up a Block, which translates to the creation of new Bitcoin.</strong></p></blockquote><p></p>
[QUOTE="Greenhost, post: 678, member: 20"] When you’ve gained confidence in your mining ability and understanding, you can make the leap to building a dedicated Mining Rig. This will require an investment in money and time to build, but you’ll see big gains in your hashing capacity, and BTC in the bank! A less technical way to be involved with Bitcoin mining is to invest in a mining company, or buy mining bonds. There are exchanges such as GLBSE where you can purchase shares of ownership in a mining operation run by an experienced operator. He or she will be well versed in the technical details involved in maintaining and growing a large scale mining operation. When you buy bond shares you are funding the creation or growth of the enterprise. The Bond offering will have specific details outlining the dividend payment plan or other method of deriving revenue from your investment. Why would a person rent hashing power or buy into a mining bond? There are actually several reasons to go the investor route, rather than buy BTC outright, or start mining on your own. The future ratio of how much money you can earn with a given hash power could become more favorable, so a long-term contract could make sense. Mining pool operators wanting to attract miners to their pool may take this approach. A person holding other types of cryptocoins could utilize rented hashing power to force difficulty and price higher in that currency. Finally, you can always just buy into Bitcoin yourself. There are several ways to do this, perhaps the easiest is to simply do a transaction with a company like SpendBitcoins.com, where you can purchase a MoneyPak at major retailers or even online and then use that to get Bitcoin sent to you instantly. Owning Bitcoin as an investment means you will want to watch the value of Bitcoin against your home currency – hopefully it will go up and your investment will be making a profit! Bitcoin is volatile! That means price can rapidly go up or down quite a lot. In fact, in the time of writing this eBook, BTC has already risen to $9.50 USD/BTC – that’s nearly a 100% increase! You can play the market with your BTC if you want to try it. Volatility can give you opportunities to sell your BTC and then buy it back again when price drops (if price drops). This currency trading can be fun, profitable or stressful if you get the timing wrong! What kind of results can you expect? You’ll quickly realize CPU mining has been far surpassed by new technology (this may have resulted in a difficulty spike that drove BTC to over $30USD/BTC! If you are still interested in mining with your CPU, you can mine LiteCoin as an alternative, hoping that it too may achieve a stable value – and heck its pretty fun. With an investment in GPU hardware you’ll see much more mining capacity, however most ROI analysis looks for the hardware to make a profit against the power it consumes. Depending on what you pay per Megawatt, GPUs may not be profitable. You can go to your local PUD website to look up your rate for electricity. You are likely to end up with a mix of GPU and newer technology such as FPGA (dedicated programmable chips that have recently been brought to market). Either way, you can expect a big learning experience, some excitement, some disappointment – but definitely an Adventure in Bitcoin Mining! [B]Chapter 2 – The nuts and bolts of mining BTC History of Bitcoin Who is Satoshi and Where is He Now? (Bitcoin Wiki) Satoshi Nakamoto is the founder of Bitcoin and initial creator of the Original Bitcoin client. He has said in a P2P foundation profile[1] that he is from Japan. Beyond that, not much else is known about him and his identity. He has been working on the Bitcoin project since 2007.[2] His involvement in the Bitcoin project had tapered and by late 2010 it has ended. The most recent messages reportedly indicate that Satoshi is “gone for good”[3]. His identity and nationality are unknown. The few bits of information available[1] about him point to Japan, he never wrote a single line of Japanese, the Bitcoin client has no Japanese version and there is no Japanese page on bitcoin.org. He is entirely unknown outside of Bitcoin as far as anyone can tell, and his PGP key was created just months prior to the date of the genesis block. He seems to be very familiar with the cryptography mailing list, but there are no non-Bitcoin posts from him on it. He has used an email address from an anonymous mail hosting service (vistomail) as well as one from a free webmail account (gmx.com) and sends mail when connected via Tor. Some have speculated that his entire identity was created in advance in order to protect himself or the network. Perhaps he chose the name Satoshi because it can mean “wisdom” or “reason”. Hashes, Nonces, Shares and The Block Chain – Genesis of the Bitcoin If you are new to cryptology, all these terms are new as well. Don’t get overwhelmed – its best to experiment with a CPU mining client while you try to understand how this works. You will be able to see the primary components that make up a Block, which translates to the creation of new Bitcoin.[/B] [/QUOTE]
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