One of the biggest problems I ran into when I was looking to start mining Bitcoin for investment and profit was most of the sites were written for the advanced user. I am not a professional coder, I have no experience with Ubuntu, Linux and minimal experience with Mac. So, this is for the individual or group that wants to get started the easy way.

First thing you need to do is get a “Bitcoin Wallet”. Because Bitcoin is an internet based currency, you need a place to keep your Bitcoins. Got to http://www.bitcoin.org and download the Bitcoin client for your Operating System. Install it the client will begin to download the blockchain. Downloading the blockchain can take a long time and will be over 6GB of data. If you have data caps, I would recommend ordering a copy of the blockchain on DVD to keep from going over as it is growing exponentially. Click to order the bitcoin blockchain by mail. Once the client is up to date, click “New” to get your wallet address. It will be a long sequence of letters and numbers. One of most important things you can do is make sure you have a copy of the wallet.dat file on a thumb drive and print a copy out and keep it in a safe location. You can view a tutorial on how to create a secure wallet by clicking the link on the top of the page. The reason is that if you computer crashes and you do not have a copy of your wallet.dat file, you will lose all of your Bitcoins. They won’t go to someone else, they will disappear forever. It is like burning cash.

Now that you have a wallet and the client, you are probably roaring to go, but if you actually want to make Bitcoin (money), you probably need to join a pool. A pool is a group that combines their computing power to make more Bitcoins. The reason you shouldn’t go it alone is that Bitcoins are awarded in blocks, usually 50 at a time, and unless you get extremely lucky, you will not be getting any of those coins. In a pool, you are given smaller and easier algorithms to solve and all of your combined work will make you more likely to solve the bigger algorithm and earn Bitcoins that are spread out throughout the pool based on your contribution. Basically, you will make a more consistent amount of Bitcoins and will be more likely to receive a good return on your investment.

The pool that I’m involved in is called Slush’s Pool so I will be giving instructions on how to join there but feel free to look at other options. Follow the link to go to their site and click the “Sign up here” link at the top of their site and follow their step by step instructions. After you have your account set up, you will need to add a “Worker”. Basically, for every miner that you have running, you will need to have a worker ID so the pool can keep track of your contributions.

If you are mining with an ASIC, please go to our Mining with ASICs page. The following will only pertain to GPU miners.

Most of the mining programs out there are pretty complicated to setup and will frustrate your average user. Recently a great program has come out to get the most basic of users started. The program is called GUIMiner. Click the link and download the program (Be careful, some of the ads are set up to look like the file download). Install and run the program and add in your information from Slush’s Pool. Remember that the user name is actually the worker name. The worker name will be your user name, dot, worker ID (username.worker ID) and the password from that worker ID.

Mac users should look into using Astroid

Now that you are set up, you can start mining. If you feel like you want to make more Bitcoins, you might want to invest in mining hardware.

To see how much your current hardware will earn mining Bitcoins, head over to the Bitcoin Profitability Calculator.

If you found this information helpful, please donate to 1G1ehppEgjiFTUSHFz2xs9KLSQuWLPYF2o

77 Responses to “Beginner’s Guide to Mining Bitcoins”

  1. BitBuff June 23, 2011 at 3:53 am #

    I’m confused. You named the page “beginners guide to mining bitcoins”, but then didn’t actually say how to do it. Just something about joining OTHER people’s pools. I’m really, genuinely interested in just using the basic software to make coins, and you don’t actually describe how to do that here.

    Where do I tell the minerd (or bitcoind) what wallet to put the “found” coins into? I seem to see that a username and password are required, but you don’t say where to get them (or how to generate them)

    etc… please expand this area, and I’ll happily send the first bitcoin I receive to the address above.

    • Thinkweis June 23, 2011 at 6:31 am #

      Great Question BitBuff!

      First I want to cover why I recommend why I suggest joining a pool. The reason is that bitcoins are mined in blocks of 50. You can’t mine just 1 at a time. So unless you have a massive mining machine, the odds of you actually discovering a block at the current difficulty is extremely low. It actually might never happen. That being said, it can still be done, but it would be an extraordinary lucky occurrence. In a pool, you are working together to discover a block and you will receive a lot of smaller payouts with much more consistency.

      That being said, if you want to mine on your own you need to run bitcoin.exe. Not bitcoind.exe. When you run bitcoin.exe it will create a wallet for you. I am assuming you are using Ubuntu or Linux because you mentioned the bitcoind.exe program so just run the correct program and you will see your bitcoin address in the program. Just leave it running and see if you get lucky. If you are solo mining don’t expect to see any funds go into the account. You might see nothing for 2 months and then all the sudden there is 50 bitcoins in there. You might never see any go into your account. That’s the risk of solo mining. I would also recommend looking at my article on creating a secure bitcoin wallet as that might help you to understand how the wallet works and how to keep it safe.

      Also, there is no username or password required for the bitcoin.exe program. I haven’t used the minerd program but if if requires a user name or password it is probably used for mining in a pool. The user name and password are to let the pool know who you are so they can keep track of how many shares of the next discovered block will be going to you.

      I hope this clears things up and please contact me or reply to this post if you have any other questions.

      -Thinkweis

  2. Bitcoin Venture Capital June 26, 2011 at 10:06 pm #

    If you are interested in some more details about joining a pool, I recommend you visit the Bitcoin mining profitability calculator at

    http://bitcoinx.com/profit/index.php

    I have a decent run of the mill graphics card that generates 14MHash/s. With the current difficulty it estimates the average time that it would take before I would get “lucky” and find a block would be 13 years, 152 days. On the other hand, mining pools pay a fraction of a BTC immediately.

    For an idea of the kind of system you need to mine and make it worth it, take a look at

    http://www.bitcoinminer.com/

    Your best chance to make an impact in the bitcoin market is to generate a good or service and sell it in exchange for BTC. Or you can just try to speculate on the exchange rate and use it like Forex.

    • Thinkweis June 26, 2011 at 11:20 pm #

      Bitcoin Venture Capital is a great resource in the Bitcoin Community. They have a great program over there and it is worth a look. I have a link posted to their site on the right side of the page for all who are interested.

  3. Fran Tarkington June 30, 2011 at 5:43 am #

    Let’s say I worked at a large hardware reseller and I had access to 8 or so servers that were sitting in my datacenter completely dormant. Would it be possible to set up a mining operation using these servers. They are a mix of D*** and H* servers and blades. They range in specs from 2.2Ghz to 3.06Ghz and have 16Gb-48Gb of ram. We have an OC-3 going into our datacenter. Could this suffice as a mining unit?

    • Thinkweis June 30, 2011 at 2:57 pm #

      It would be very inefficient. You would probably only get around 15-25 Mhash/sec per CPU and your energy costs would go through the roof. ATI graphics cards are the only real way to mine if you are interested. I would recommend buying Bitcoins for the investment if you are not currently in a position to mine.

  4. alex September 4, 2011 at 1:15 am #

    hey if i spent $30,000 USD on mining equipment could i ever hope to make that money back?

    • Thinkweis September 4, 2011 at 1:49 am #

      Right now would be a better time to buy if you ask my opinion. At the beginning they were easy to mine so some people have a stock of them they are willing to let go at a lower price. They mined them when it was cheap so they don’t value them as highly. If you were to spend that much on mining equipment you are looking at a lot of risk but you would have some nice equipment in the end. I would still say to buy now before they get even harder to mine and much more valuable.

  5. Chaim November 15, 2011 at 11:04 pm #

    Hello,

    I am really curious how Bitcoin works. Could somebody explain to what exactly is being “mined” when one mines bitcoin?

    I have googled and not found any clear explanation.

    Thanks!

  6. cassidy September 8, 2012 at 4:00 am #

    hi
    i have no idea how to even get the bitcoins into my wallet i keep getting told to put it in the bank but the banks havent even heard so i dont want to loose my money is there ways of using my debit card ?
    this has been frustrating me for a week.
    please help!

  7. Markh2 September 26, 2012 at 12:30 pm #

    Hi,

    This was a great read, I heard about bitcoins on the news and after reading your website has got me intrested enough to give it ago myself.

    I have started a blog to follow my progress at http://www.bit-mining.com and have linked your site in one of my posts so others can have a read.

    When I make some coins I will be sure to make a donation.

    Thanks,

    Markh2

    • Thinkweis October 5, 2012 at 4:43 am #

      Hi Mark,

      Great site you have over there! The funnest part of mining bitcoin is getting everything optimized. I used 48 hours of continuous mining before I felt comfortable. I found that my computer preferred to crash right after I left the house for work, costing me a whole day of mining.

      Best of luck to you!

  8. Carson September 29, 2012 at 7:04 pm #

    Ok what the fuck. I have guiminer but no matter what I do whether it be solo or pool mining I get the message “Problems communicating with Bitcoin RPC” It doesn’t matter what any of the field say I still the error. PLEASE HELP

    • Thinkweis October 5, 2012 at 4:33 am #

      Happy to try and help Carson, but please give more info on the problem. Are you in a pool? What software are you using?

      Thanks

  9. newbie September 30, 2012 at 10:49 pm #

    how do you get the username and worker id?

    • Thinkweis October 5, 2012 at 4:36 am #

      Just sign up for a mining pool and create a new miner.

  10. Mike October 11, 2012 at 7:48 pm #

    Anyone in the world can purchase bitcoins or accept them as payent. It’s only a matter of time (its probably happening now) before terrorists use the bitcoin to fund terrorist activities by moving money to cells all over the world usine bitpay.

    Terrorists can simply sign up as someone else using phony inflrmationand send bitcoins earned by purchasing them with money or accept them by running a business used to fund terrorist activities (they’ll never mine the coins). It is a great way to launder money as well. Sure, all transactions are public but no one really knows who is sending and recieving bitcoins since the terrorists will be using false information.

    There is a reason the Fed monitors bank transactions. If even one terrorist transaction is discovered the US government and other countries will no longer exchange bitcoins for $ and will do everything in thier power to shut the bitcoin market down.

    • Thinkweis December 3, 2012 at 1:41 pm #

      Unfortunately all free markets have risks. Because bitcoin is completely unregulated, it can be used for less than reputable means. But, freedom always comes with risks, and without complete control over every aspect of life, there will always be inherent dangers. I (and many more in the community) see risk as a necessary evil to freedom. I would rather have a currency beyond the scope of government control to inflate and deflate whenever they see fit, so I work with the bitcoin community and do my best to help it grow. I understand that many may disagree with these philosophies, but this is the stance I take, for better or worse.

      -Thinkweis

  11. noobloser November 4, 2012 at 4:10 pm #

    I really can’t figure this out for shit…

    “After you have your account set up, you will need to add a “Worker”. Basically, for every miner that you have running, you will need to have a worker ID so the pool can keep track of your contributions.”

    What do I put in the the field for the program? I’m so fuckin pissed I can’t figure this program out for shit!

    • Thinkweis December 3, 2012 at 1:34 pm #

      For your worker, it is usually the user name you signed up with at slush’s pool, dot, worker ID you registered there.

      It will look like [username].[workerid]

      Hopefully this helps,

      -Thinkweis

  12. Darren November 9, 2012 at 9:26 am #

    Hey, i set up everything like you said, I am trying to run GUIMiner but all it does is say starting in the botom corner and doesnt do anything else, also says no OpenCL devices, what is this?

    Thanks,
    Darren

  13. reed December 3, 2012 at 9:08 am #

    I have a miner and wallet set up on one computers but when ever I try to set up a miner on another computer it says I need an openCL what do i need to get it to work

  14. bloodstriker December 3, 2012 at 1:17 pm #

    hello- i have an important question ?:
    should i keep running the wallet till i mine with the GUIMiner, or i should only use GUIMiner and close the wallet program – cos it both seems to myne something…
    i am not sure what :)….
    and the other question? :
    from where to transfer the coins onto my wallet …
    they come to the site right?
    then???
    is it automatic?
    (i use the site that u shared above)
    tell more about that in steps please.
    me new…

    10x in advance .
    PS: i really will send u the first coin … when i get it :D….
    (and if i could get it)

    • Thinkweis December 3, 2012 at 1:32 pm #

      Hi Bloodstriker,

      Once you are mining with GUI-Miner, you should shut down your Bitcoin client. Even if the Bitcoin client is showing you mining, the odds of you actually winning a block are extraordinarily low, so you are really just taking away from potential winnings from your pool.

      On the pool that signed up with, you should have entered your wallet address for rewards. The pool will automatically send coins to that wallet, whether you have it running or not. Once you have a payout from the pool, you can start up your bitcoin client and it will download the blockchain. If you have been sent any bitcoins, it will show in your wallet once that block is downloaded.

      If you need any more clarification, feel free to write back and I’ll do my best.

      Thanks for the questions,

      -Thinkweis

  15. Jester December 3, 2012 at 8:32 pm #

    How long will it take for the wallet to synchronize to the network its been around the same spot for a day now

    • Thinkweis December 3, 2012 at 9:28 pm #

      Compare what block it says in your client to the current block on blockexplorer.com

  16. travis December 13, 2012 at 9:00 pm #

    i have a question, i just started, i have gui miner and joined a pool, and also the bitcoin wallet, my question is how will the bitcoins be transferred between the two programs, (how does guiminer know where to put the bitcoins?) thank you

    • Thinkweis December 14, 2012 at 12:51 am #

      When you signed up for the pool you entered your bitcoin wallet address. All transactions are recorded on the blockchain. When you open your bitcoin app that has your wallet, the app automatically downloads the blockchain and updates your wallet with any bitcoins that were sent to your address. There is no bitcoins that are actually on your PC, the bitcoin client just lets you know how many you have. A great site to look at is http://blockexplorer.com and you can search your wallet address to find out how many you have. Hopefully you have created a secure bitcoin wallet and are using that for a savings account, so every time you view your wallet, it will automatically update to show how many bitcoins you have mined or purchased.

  17. chris February 2, 2013 at 10:13 am #

    Brilliant web site . Pure beginners stuff.

  18. miner2049 February 4, 2013 at 4:42 pm #

    I just started on a single laptop with core duo 2 intel CPU and a GeForce 9400m card. it says my hah is 1702 khash a sec. is that bad? my local work size is 192. what does that mean?

    • Thinkweis February 7, 2013 at 12:08 am #

      Unfortunately with your equipment, you will never get anything. Look into buying one of the new ASIC rigs or consider buying them from someone else.

  19. wolf February 11, 2013 at 11:38 am #

    Ok, so lets say i buy the bitforce single which has the performance of 60GH/s. Its costs $1,300 USD. Now how long will it take in days to earn the money back if i either mine in solo or in a pool. Everyone was waiting for these new asics to come out and now they are here.
    And does it also depend on your internet connection and how fast it is?

    • Thinkweis February 11, 2013 at 12:19 pm #

      The recoup time really depends on how the price of bitcoin fluctuates along with the difficulty. A great tool is the profitability estimator at http://www.bitcoinx.com/profit/ to figure out recoup times. I personally have made the investment into Butterfly Labs and am looking forward to receiving my ASICs. I believe it will pay off big time, but with all investments, there is risk and no one can guarantee a return on your investment, but I can almost guarantee that graphics card mining will be dead within the next 6 months. Good Luck and have fun mining!

  20. blue February 12, 2013 at 11:11 am #

    hi thinkweis
    thanks for the info i have some questions.
    1. what hardware are you using at the moment and what kind of returns are you getting?
    2. when you start using your ASIC will you continue in the pool or go solo? (are there advantages to working in the pool even with better hardware?)
    3. is it realistic for a complete newbie with very little technical knowledge to purchase one of these ASICs and be able to run it and expect to make a living?

    • Thinkweis February 12, 2013 at 11:39 am #

      Hi Blue,

      1. I’m currently running a BFL Single (non-asic) and 4 5870′s netting about 2.3GH/s but I plan on stopping all graphics card mining as soon as my Butterfly Labs ASICs arrive. I am pre-ordered for 1 Jalapeno, 1 Little Single and 1 Single giving me a total around 100GH/s. Currently I get a bitcoin every 3 days or so, but I expect a much bigger return once my ASICs arrive.
      2. I will continue to pool mine once I receive my ASICs. I expect a dramatic increase in difficulty and want to ensure a steady stream on Bitcoin. You could potentially mine solo at first but I do expect the honeymoon to end once all the first and second run guys are chugging away.
      3. It is very realistic for a newbie to get into the game. Once I receive my ASICs I will create a guide especially for those and continue to make it easy for people to join the fun. As far as making a living goes, I can’t say. It would require a substantial investment up front to get that kind of hashing power and bitcoin is still a volatile market. The risk is directly on your shoulders for your investments and I can’t tell you how to handle your finances. I have decided that the risk is worth it to me so I have made my investment. Whether bitcoin is right for you or not, I can’t say. You have to make that decision.

      • blue February 13, 2013 at 6:49 am #

        thanks for the quick reply i think i will make the investment in butterfly labs aswel.
        great site keep up the good work il be sure to drop a donation once i start mining

  21. wolf February 12, 2013 at 7:53 pm #

    what i am seeeing on the link you give me. producing one block takes 2 days. but on the right it shows coins per 24h at these conditions 9.2124 BTC. I discovered bitcoins a few years back and was told there was no point of mining with the graphices cards because they had a very low hash rate and it would take alot of them to have a stable speed. The way im reeading this right now is that i buy a single for $1,300. Every 24h i make $200USD which in a week will pay off my device and than i can keep making $200USD every day until my device frys. i know it cant be this simple or is there something i dont understand?? Im taking this very seriously and only you guys as far as i searched actually answer and explain???

    • Thinkweis February 12, 2013 at 9:23 pm #

      First, whoever talked you out of bitcoins a few years ago cost you a lot of money. Second, with current market conditions, the BFL ASICs would make about $200 a day, but that will drop as the bitcoin network only gives out 25 BTC every 10 minutes. Essentially, BFL will be adding a lot of additional hashing power and that will increase the difficulty over time, meaning you will start off making a lot and it will slowly dwindle as more and more people get it. My opinion is that the earlier you adopt, the more money you have potential to make. This means you can expect to make a large chunk up front and it will slowly drop. I feel extremely confident I will make back my investment and plenty more, but there is no guarantees in the currency exchange business. Use the link to play with the difficulty and figure out how they perform with 10X more difficulty and keep going up. You do have a great opportunity with them and I honestly believe bitcoin has a great future, but I cannot guarantee it, just like any investment. I’m in with my money and invested in Butterfly Labs. Whatever you do with your money is on you. If you just want to dip your toe in the water, try a Jalapeno for $150. That little beast cranks out 3 times the mining capacity of my old graphics card setup with insanely less power consumption. They have several options for the newbie to the serious investor. Either way, Bitcoin is a lot of fun and I’ve turned a profit.

  22. wolf February 12, 2013 at 9:38 pm #

    Well thank you thinkweis for taking your time replaying back. I am planning on investing right away and of course over a a curtain time the difficulty will get greater just as any investment does in any category. I do plan on going solo at first and than when it becomes slower to get bitcoins, i’ll jump in the pools. Thanks again for the replay, you will be hearing over me again..haha.!

  23. wolf February 13, 2013 at 3:58 pm #

    i for got to ask, Is it important to have a high speed internet for mining solo. like for an example, would there be a difference in my abtainment of bitcoins if i use a standard 100mbps connection or a T1 connection?

    • Thinkweis February 13, 2013 at 4:16 pm #

      Not really. Most of the work is being done by your miner and it’s very little data throughput. The downside is that the blockchain is really large. Around 6GB right now, so having a slow internet connection would be pretty brutal for your initial startup. A regular cable modem type connection is more than fine.

  24. Lamontx February 17, 2013 at 7:59 am #

    Thinkweis,

    Nice guide man, but yoru comments are what really have me excited. I stumbled upon bitcoin mining a long time ago but had a crappy machine back then, and forgot about it, now I have a nice machine, but an Nvidia card. So no current mining here.

    The ASIC talk is intriguing though, and the info I gleaned here got me excited enough to look into it more. My question here though is, do you think it’s too late to pre-order an ASIC from BFL now?

    If you ordered early and will get your machine early you are laughing, but if I order now I doubt I will see it before June. I can stomach the idea of investing into a BFL Little Single, but if the difficulty ends up increasing 40x, or the value plummets to single digits, it scares me.

  25. Karan Bhatia February 19, 2013 at 5:29 pm #

    Hi Thinkweis,
    Getting money is attractive…of course. But isn’t it kind of weird when people “invest” in buying expensive machines that will sit and do mindless useless number-crunching all day long to get some free-money, while wasting electricity and processing power. I had head of a parallel processing project before where you could hook up your machine online to the service which links millions of computers which together perform scientific calculations and aid in research. That would be a useful use.

    My real problem with this approach is that people blame those “bankers” who do no real work but gain money on the hardwork of real people who do the work and produce the goods and services. Well aren’t we being like those same people by engaging in “mining” and “speculative trading” of Bitcoins. It is money for free at he end of the day (after you adjust the cost for electricity, the computer hardware and your time put in). It isn’t building anything of value. What are your views about this?

    I’m all for Bitcoins as a new form of currency that scoundrel-bankers cannot manipulate, but some of the things Bitcoiners would do would be kind of the same as what those bankers do, isn’t it?

    Best,
    Karan

    • Thinkweis February 19, 2013 at 5:58 pm #

      Thanks for the input Karan!

      You have an interesting perspective, but I do have to differ on what mining means to this economy. I agree that in the beginning, there was a bigger power drain for little tangible good, but with the new ASIC miners, the power consumption is reduced dramatically. I don’t think of the miners as bank scoundrels because we are not in direct control of the currency and do not have a federal reserve giving us bitcoins for 0% interest and us turning around and ripping off consumers. There is no governing body changing rules or creating new ones that allow bitcoiners to take advantage of the market. The bitcoin community is supply and demand, and it’s a very pure form of that. Think what crazy laws would be in place if the US government created a crypto currency. The rich would get richer and the poor would get poorer. Bitcoin is different and so are the people involved.

  26. TheEman February 20, 2013 at 11:25 pm #

    Thank you for the great tutorial it has been very helpful, but I just have 1 questoin. When I am running GPUMiner under the device section there are only 2 things listed there currently: [0-0] Barts and [0-1] Intel(R) Core(TM) i5-2390(my processor). I was wondering if you could tell me how I could make it so it also uses my graphics card to mine because I am aware that my graphics card, Radeon HD 6980 x1, has a quite high Mhash/s rate? Thanks for any help you can give me with this.

    • Thinkweis February 20, 2013 at 11:53 pm #

      Each miner you set up will only use 1 of the options. Bart is your graphics card so you’ll want to choose that option for your mining. Just leave the Intel alone and you’re good to go.

  27. Goldminer February 22, 2013 at 12:56 am #

    So, these new ASIC miners are obviously revolutionary to the field of mining. You’ve touched on this before–is it worthwhile to purchase into an ASIC now? (i.e. do you have any greater feel for the community of miners and just how many units are being purchased) Also, do you see another paradigm shift and revolution in mining capabilities upcoming like this one? Thanks!

    • Thinkweis February 22, 2013 at 10:00 am #

      I do believe it is worthwhile, although you won’t get the giant pay out of being an early adopter that rakes in hundreds per day, you have a lot of potential to make more than your investment. Make no mistake, there are risks. Nothing is guaranteed.

  28. Suri February 22, 2013 at 6:18 am #

    Hi, I am just jumping into BitCoin mining. What are my chances with a standard desktop pc (intel 3000HD, 2GB RAM, i5 2320 3GHz) and how late am I to the party?

    Thank you.

    • Thinkweis February 22, 2013 at 10:01 am #

      Unfortunately, you will not do any good mining with your current PC. If you want to get into mining, look at the ASIC miners from Butterfly Labs. Your current would cost you way more in electricity than you would ever get back in bitcoin.

  29. Smith February 25, 2013 at 3:14 pm #

    I have just decided to get into BitCoin mining as of late, but I am afraid it may be too late. Would it be worth the while to begin with a single 6950 running on a pool like Slushes? Or would it be just a waste of time…

    • Thinkweis February 25, 2013 at 3:30 pm #

      If you already own everything you need to get started you could see a little revenue, but you have to factor in your electricity costs. Future mining will require an ASIC to make money. You may have a month or two before it is pointless to mine with a graphics card.

      • Ilana February 25, 2014 at 10:06 pm #

        I’m currently mining on a top of the line graphics card. My rate is way slow. It’s like .001 cents an hour, which would be a net loss if I wasn’t living in a dorm and therefore totally not responsible for my electricity bill. Buy an asic

  30. Steiner February 26, 2013 at 12:16 pm #

    I’ve heard of bitcoins a year or so ago, spent a little time playing around with it and seeing if I could generate some bitcoins but lost interest in it when it got pretty technical pretty quick. Even though I consider myself pretty well versed there seemed to be a lot of problems at that time. Yesterday I checked it out again and I’m up and running with guiminer on my desktop here, but only going at about 45 Mhash/s, so not terribly fast.

    I did some reading on Butterflylabs, looked at the Jalapeno which looks pretty sweet, but they are apparently having major issues with fabrication. Are you tied to them with a preorder? I thought about going in, but right now they are speculating March timeframe and that’s with it slipping apparently several times.

    • Thinkweis February 26, 2013 at 1:17 pm #

      You are correct in saying 45Mhash is not worth it. As far as preorders with BFL goes, I do have a pre-order with them and I do believe they will deliver. I have one of their old singles and it still runs great at 800Mhash/s and know they have a track record of delivering. There have been some speed bumps but I do believe they will overcome them and have product shipping withing the next few weeks.

  31. tarek February 26, 2013 at 12:30 pm #

    hey,

    I’m considering buying a butterfly labs 30 gh/s or 60 gh/s. however, most of my research points me in the direction that the difficulty will become so great that roi would be a long ways out. do you think it’s worth it to try or am I too late? one thing to consider is that my electricity costs would be zero.

    also, what are basic cpu requirements? can I buy a cheap netbook for example and use it with my asic to mine or do I need something more robust?

    lastly do you know noisy those butterfly labs asic units are?

    thanks

    • Thinkweis February 26, 2013 at 1:20 pm #

      When I started with Bitcoin a few years ago, everyone said that it was too late and I’d missed the boat. Bitcoins were around $6 and people said it wasn’t worth mining because electricity costs more than the coins you mine. What people forget is that Bitcoin is deflationary. It goes up in value over time, rather than down like government currency. It may be break even in 6 months at the current price, but it would be profitable if the price goes up. That’s the fun in mining. You are taking a gamble on something entirely new. If you can’t afford to lose, stay out. If you have a little to wager on the long term success of bitcoin, have fun and enjoy the ride.

  32. Kent February 28, 2013 at 3:47 pm #

    Hi Thinkweis,
    I am totally new to this bitcoin minding. My question is, approximately how long will it take for me to accumulate 1bitcoin using a laptop Dell studio 1737?

    • Thinkweis February 28, 2013 at 4:23 pm #

      You probably won’t make any amount worth mining with that laptop. The future of mining is ASICs and they can be pre-ordered through butterfly labs currently.

  33. AgentScruffy March 3, 2013 at 4:48 am #

    Hi:

    Can I obtain a benefit from the Butterfly Labs miners apart from using them for bitcoin miners? (I do a lot of video work on my computer and I don’t know anything about ASIC –so I’m wondering if they would speed processing up on my computer for graphics-related tasks as well. )

    Thanks!

    • Thinkweis March 3, 2013 at 7:46 am #

      That’s a negative, AgentScruffy. ASIC stands for Application Specific Integrated Circuit. That means it does one job extremely well, but won’t help you anywhere else.

  34. Anon March 7, 2013 at 7:17 pm #

    Hey,
    I have the current specs,
    GTS 250 512MB,
    AMD AthlonII 245
    8GB RAM.
    It it worth going into bitcoin mining (Just leaving it on over night etc.)?

    • Thinkweis March 7, 2013 at 7:47 pm #

      Never mine with Nvidea cards. Ever.

  35. Mike March 11, 2013 at 8:04 pm #

    Non teck guy here
    So who provides the algorithm to be solved & who or what company benefits from my computer solving or processing this algorithm?.

    • Thinkweis March 16, 2013 at 5:38 pm #

      The program of the person who solved the last hash creates the new one and no company benefits. Bitcoin is its own entity entirely.

  36. Anons March 16, 2013 at 5:05 pm #

    Ok everyone I need help 5 days ago i started, using this article, mining BTC, but I shutdown my computer because I had to leave for a bit, but now when I try to mine BTC it tells me NameError:name “OpenCLMiner”is not defined which makes no sense becuase I have not changed ANYTHING. please help A.S.A.P thank you for your time.

    • Thinkweis March 16, 2013 at 5:37 pm #

      Try reinstalling GUI miner and reinstalling your video card drivers.

  37. nvideauser April 4, 2013 at 5:24 pm #

    just to follow up to my last question im useing an nvidea 670 card and over the last 12hours in slushys acount page it says i mined 0.00183251 BTC with a mhash of 109. Are these kind of numbers about right or am i going to end up with a huge power bill and nothing to show for it?

    • Thinkweis April 4, 2013 at 5:44 pm #

      You will have a huge power bill and little to show for it. According to what you just said, at current difficulty, it would take 375 days for you to mine 1 bitcoin. That’s running your computer at full power 24 hours a day. Nvidea cards are not good at hashing. Pretty soon AMD cards will be to weak to mine as well. The market is moving to ASICs.

  38. Notanyoneyouknow July 12, 2013 at 10:11 pm #

    Hey, in Bitcoin.cz it asks me for a Bitcoin adress, wich i dont know how to find in the program GUIminner, do you know where i can get my own adress?

    • Thinkweis July 30, 2013 at 2:45 pm #

      You have to download the bitcoin wallet mentioned at the beginning of the post. Once it updates completely, you will get an address.

  39. Wally November 22, 2013 at 10:54 pm #

    Sorry, I am new to mining. You have explained the whole thing very clearly. Thanks a lot. I still have a couple of questions that need to be clarified. Here’re what I have done:
    1) I have sync with the transactions already.
    2) I am using Bitcoin-qt and generated an address for mining with Slush’s pool.
    3) I have opened an account with slush’s pool.
    I am now trying to set up GUIMiner. You’ve mentioned that the username should be the “username with the slush’s pool” – DOT – “worker ID”. But what is the “worker ID” and which password shall I type in?

    Your explanation shall be greatly appreciated. Thank you!

    • Thinkweis November 22, 2013 at 11:13 pm #

      When you log into Slush’s pool, there is a list of your workers at the bottom of the page. If not, set one up.

      From there, you will see what your miners user name and password is.

  40. Teodor February 9, 2014 at 12:26 am #

    Hi, just started to mine with a 200GHs Avalon2 miner. How can I see how much this miner is producing? I guess need to watch the interface somewhere but not sur ehow to do it. Thnks a lot!

    • Thinkweis May 20, 2014 at 10:13 pm #

      Head on over to the calculator page. It will calculate your potential earnings.

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