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Bitcoins !!

15 Feb

As part of my daily routine of surfing the net at 4 am, I came across something know as bitcoins a month ago !!

What really excited me was that this was some kind of new VIRTUAL currency which can be used to make deals in the Real World as well as the Virtual World.

And thats not the end of it, as it turns out we ourselves generate this currency, using our computers.

Awesome isn’t it. I mean free CASH !! Woooo-hooooo .. who doesn’t want free cash ..

Hell i drove straight in,

So here’s what i found out : The Bitcoin network began on January 3, 2009 with the issue of the first bitcoins. In the same month the creator, Satoshi Nakamoto, released the original Bitcoin client.Go here to get detailed info on Bitcoins or here  or here. (the third option is the OFFICIAL link provider) 

  1.  You use a bitmining software to generate bitcoins . How exactly does the computer do that ? it does so by solving mathemathical calculations. What calculations are done? well say i have sent some bitcoins to you, this transaction needs to be confirmed by other computers (coz in bitcoins there is no centralized authority to keep track) the calculations are part of this confirmation process.
  2. How do you go about MAKING bitcoins ?  First u should get yourself a wallet( it is like a piggy bank where u can deposit all the coins u have earned). DOWNLOAD your bitcoin client( same as the wallet) here Windows OR Mac, for further instructions you can visit HERE.

Please note the above type of client saves your coins and transactions on your Computer. But there are websites which will act like a bank storing your coin for you, search for them on google or go HERE.

  • 3.  Next you need to start mining don’t you? Well its all good till u reach this stage, you see to make money by computations,   you need to compute fast to mint money faster (for the uninitiated you should have a very fast computer capable of making fast calculations so you can make a decent amount of money each day).

To achieve this your CPU aint gonna be ENUF!! you have got to use GPU. Whats a GPU you may ask : its Graphic Processors .. like your video cards. so yeah one of the requirements for mining is having you computer equipped with a GPU.

  • 4. But hold on there, before you run out the door and get yourself a super-neat Video Card, may i inform you that jus not any video card will do, you see ATI RADEON graphic cards are more suited to Mining compared to Nvidia. If you wanna know why jus visit here. What you need is a GPU with a sufficiently high Mhash/sec, which can be found HERE.
  • 5. Well once your computer is ready, you need software which will do the mining for you, there are 2 types of mining : solo mining ( every completed calculation is called a BLOCK and each block gives you 50 BTC … BTC? = bitcoins)

So SOLO mining is you mining all alone, your computer will do the calculations for the entire block. Thus when it is completed you get 50 BTC. but this may take weeks/months to complete.

Therefore many users choose to participate in Pool mining. What happpens here is that the required Block Calculations are distributed among all member computers, thus completing the entire calculation faster than a single computer, and each miner gets paid according to his share in the caculations.

There are various Pools you can join or you can opt to mine SOLO, here is a calculator which can help you find out how much money you can make in one day.

The software you need can be found @ Windows, Or jus visit HERE for assistance for Linux.

Located HERE is a guide to using the guiminer software ( it can be used to pool as well as solo mining)

While you are at it also visit Bitminter, they are pool miners and also have their own software for mining.

6. Well thats all there is to mining. Start away with mining for BTC and watch the money flow in. New users can visit bitfaucet.com to get free BTC.

** you can also earn bitcoins by taking polls / answering review questions etc, but they don’t normally have a high payout.

So if I were you, I would invest in a decent powered Desktop with 2 decent GPU and an unlimited Internet connection and fire away the Miner.

For those more inclined towards linux, there is a LINUX based OS dedicated solely to BTC mining.You can load it into a pendrive and fire up mining from any computer you can lay your hands on.

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Posted by on February 15, 2012 in Technology

 

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