Is it better to mine or buy bitcoins

Bitcoin mining represents an excellent, legal way to circumvent such restrictions. China is known for its particularly strict limitations. First-time miners who lack particularly powerful hardware should look at altcoins over bitcoin — especially currencies based on the scrypt algorithm rather than SHA Far from solving the problem, the proposal unleashed a further wave of discord.

Most Bitcoin Cloud Mining Companies are Scams

If you want to know how to mine Bitcoin, you have two different steps you can take: Iis through a cloud mining company, or buy and use your own hardware. Remember, research is important! Just as when it comes to buying Bitcoin or altcoinsyou need to be aware that nothing in the world of cryptocurrencies is guaranteed. Any investment could be lost, so make sure is it better to mine or buy bitcoins do your reading before pulling out your credit card and have a secure Bitcoin wallet standing by. Today, the barrier for entry is far higher if you want to make any kind of profit min it. Hardware price fluctuations, changes in Bitcoin-mining difficulty and even the lack of a guarantee of a payout at the end of all your hard work, make it a riskier investment than even buying Bitcoins directly. Because of this and general market volatility, it can be difficult to know how much profit you will make from mining.

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Hello and welcome to my Bitcoin for Beginners Tutorial. How to mine it and some tips and tricks that you can use to make more money mining Bitcoin. So, the first thing that I want to touch on is what Bitcoin is. Bitcoin is a new online digital currency. What is a Bitcoin? Now you might be wondering well, how do I get a Bitcoin? You can get a Bitcoin in a number of different ways.

Scenario 1: Big Chinese Miners

Hello and welcome to my Bitcoin for Beginners Tutorial. How to mine it and some tips and tricks that you can use to make more money mining Bitcoin. So, the first thing that I want to touch on is what Bitcoin is. Bitcoin is a new online digital currency. What is a Bitcoin? Now you might be wondering well, how do I get a Bitcoin? You can get a Bitcoin in a number of different ways.

You can exchange your local currency like U. And mining is a process essentially that just uses your computer to solve mathematical problems and you are rewarded when you solve these problems with a service fee. And those service fees while small add up especially depending on how fast your computer is. And now there are people out there that make hundreds and thousands of dollars mining Bitcoin. Well, not really. So, when people want to send and receive Bitcoins they need computers to process that information in order to make that transaction.

So, just to give you an example, like Bank of America or Chase or Wells Fargo all of these really big banks they have skyscraper upon skyscraper of buildings and computers and servers to allow their entire financial network to run. The first thing that I want to show you is the Bitcoin wallet. Go ahead and download and install the Bitcoin wallet. Now go ahead, leave it alone, let it sync.

Now there are a number of different mining programs out butcoins, CG miner, BF miner. So, go ahead and download GUI miner. Once you download GUI miner run the miner and you will see something similar to this screen.

And that will show us a screen similar to. And that brings me to my next point. Well, a pool is basically a collective pool, a collective network of computers that are all working together to solve blocks of information to receive Bitcoin. Now there are a number of different pools out.

BTC Guild for some reason I was making zero progress. So, the first thing that we need to do now is join a pool. We can click here to sign up. All you need is an e-mail you create a password. Now you can see here, Bitcoin address. So, once Botcoins do that you can see it pops up here in this list. Now we need to create a worker.

And this is kind of like a log in and password information. It can be anything that you want. I suggest just something simple will work. Now this is what we need to copy. We have my Intel i7 processor and then iis also have our graphics card processor.

You want to select your graphics card processor. So, you can see here test miner for beginners. I have it mining. I bitcions just going to stop. And I have zero stales. Now this number here, this column, what this represents is a count of the number of times that you were given a bit of information for your computer to solve. And your computer solved it and sent in the answer and your answer was confirmed as correct and accepted and so you get a share under accepted.

Now if you have any numbers in this column under stale basically what that means is that you were given some information to solve. You solved it, you sent it in, but you sent it in too late or you sent it in and it was wrong. So every time you befter an accepted share you get paid.

Now your computer is mining. And so, how we do that is we use a calculator, a Bitcoin mining calculator.

That is great. Go ahead and click on it. And this is a Bitcoin mining calculator. So we can enter in our megahashes per second which is So, I have an or an power supply in my computer. Whether my computer is using all that power or not is debatable.

So, then the question is well, how if what do I have to do in order to make money? Well, the answer is your megahashes per second. This number here needs to be higher, needs to be higher than the amount of money that you need to spend on electricity. So you need to make more Bitcoin than it costs to run your computer.

So, let me just give you an example. Some people are making megahashes per second which equates to 3 gigahashes. So, megahashes per second. Time frame 30 days. Keep all those settings the same, calculate. So, just to quickly answer any question that you might have, in order to get this number higher, this megahash per second we need a faster graphics card.

And so a really good website that I found is this one. It will basically compare all iss the graphics cards that id out on the market today. So, we can scroll ls here a little bit. Here is the model number and it will tell you the megahashes.

So, you can kind bitcoinz guesstimate what your megahash number will be based on which graphics card you have or which graphics card you want to purchase. Now mind you, you can plug in more than one graphics card to your computer. But in order to do that you need to make sure that you have enough power to do. Buh is just all guessing right. So just, these are just some resources for you to check out and kind of experiment. All in all after watching this video you should have been able to at least set up your wallet, set up your mining software, set up your worker and connect to a pool which then you would be able to start mining.

That concludes the Bitcoin for Beginners Tutorial. Thank you so much for watching and good luck. Welcome to Bitcoin for Beginners Part 2. This may change by the time you watch this video but I wanted to address some of the most common questions that I received in Part 1. Let you know some of the alternatives for the Bitcoin wallet because a lot of people had some issues syncing to the network and getting that to work.

You can see I am running GUI miner right. I also wanted to show you a miner that the Mac users is it better to mine or buy bitcoins use. People were reporting that they were having issues with their Bitcoin wallet. Either they were having issues running the program on their computer or that it was taking too long to sync and never fully syncing up to the Bitcoin network. MultiBit is a popular Bitcoin wallet. And one of the best things about it is that you can password protect your wallet.

Now I want to make a side note. This is the wallet that I showed huy video number one. And this is going to be in Bitcoin. Are you sure you want to send to the following address? Yes, okay. You can see sent to address transfer up and there it is right. It just transferred. I did not know. And if we click on the transactions tab we can see the transaction, we can see bu the information about it.

It basically just confirms that we transferred that amount of money. See where it says keep your password safe you need this password to spend your Bitcoin and it cannot be recovered if lost. So now my wallet is password protected. Now we have CG miner and Diablo miner. But the Mac guys I would suggest trying this anyways.

Which Companies Are Not Scams?

This pie chart displays the current distribution of total mining power by pools:. This wallet holds some amount of bitcoin. By joining with other miners in a group, a pool allows miners to find blocks more frequently. With hashrate shooting up over the years, it would seem blocks would be found by miners ever more rapidly. Savers naturally seek to protect their fiat savings by translating them to a more durable form, such as foreign currency or investments. Very clever. And what is a hash? SegWit was deployed on the bitcoin network in Augustvia a soft fork to make it compatible with nodes that did not is it better to mine or buy bitcoins. The media constantly says Bitcoin mining is a waste of electricity. Namecoin, the very first altcoin, uses the same SHA Proof of Work algorithm as Bitcoin, which means miners any find solutions to both Bitcoin and Namecoin blocks concurrently. The results are bound to be interesting; perhaps even the beginning of a profound technological shift in how we conduct our lives and business! Segregated Witness, or SegWit, increased the capacity of the bitcoin blocks without changing their size limit, by but how the transaction bitcoiins was stored. To this day, no-one knows who Satoshi Nakamoto really is. The issuance rate is set in the code, so miners cannot cheat the system or create bitcoins out of thin air. That way there is no risk that your account can be hacked, your keys stolen and your bitcoin whisked away.