Everything you need to know about bitcoin

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Everything you need to know about bitcoin

The Bitcoin owner explained that there will only ever be 22million coins in existence; of which an estimated 24 per cent have already been lost, mostly in the early years of the currency when people did not take it serious.

Is It Worth It to Mine Cryptocoins?

Bitcoin news: NOW is the best time to INVEST in bitcoin

As a hobby venture, yes, cryptocoin mining can generate a small income of perhaps a dollar or two per day. In particular, the digital currencies mentioned above are very accessible for regular people to mine, and a person can recoup $1000 in hardware costs in about 18-24 months.

Everything you need to know about bitcoin

Everything you need to know about bitcoin

Cryptocurrency mining isn’t for everyone, and it might seem daunting even if you are interested.

You might think you need an extreme know-how of computers to do any kind of crypto mining, that it couldn’t possibly be done by the average person.

Turns out, it’s absurdly easy.

Bitcoin could hit $60,000 in 2018 but another crash is coming

You just need computer parts that are powerful enough to make mining profitable, and a handy piece of software called Nicehash. You literally press a green button on Nicehash to start mining.

As a second income, no, cryptocoin mining is not a reliable way to make substantial money for most people. The profit from mining cryptocoins only becomes significant when someone is willing to invest $3000-$5000 in up-front hardware costs, at which time you could potentially earn $50 per day or more.

How Cryptocoin Mining Works

Let’s focus on mining ‘scrypt’ coins, namely Litecoins, Dogecoins, or Feathercoins. The whole focus of mining is to accomplish three things:

  • Provide bookkeeping services to the coin network. Mining is essentially 24/7 computer accounting called ‘verifying transactions’.
  • Get paid a small reward for your accounting services by receiving fractions of coins every couple of days.
  • Keep your personal costs down, including electricity and hardware.

The Laundry List: What You Will Need to Mine Cryptocoins

You will need ten things to mine Litecoins, Dogecoins, and/or Feathercoins.

  1. A free private database called a coin wallet. This is a password-protected container that stores your earnings and keeps a network-wide ledger of transactions.
  2. Because it’s similar to gold mining in that the bitcoins exist in the protocol’s design (just as the gold exists underground), but they haven’t been brought out into the light yet (just as the gold hasn’t yet been dug up). The bitcoin protocol stipulates that 21 million bitcoins will exist at some point. What “miners” do is bring them out into the light, a few at a time.They get to do this as a reward for creating blocks of validated transactions and including them in the blockchain.

Backtracking a bit, let’s talk about “nodes.” A node is a powerful computer that runs the bitcoin software and helps to keep bitcoin running by participating in the relay of information. Anyone can run a node, you just download the bitcoin software (free) and leave a certain port open (the drawback is that it consumes energy and storage space – the network at time of writing takes up about 145GB). Nodes spread bitcoin transactions around the network. One node will send information to a few nodes that it knows, who will relay the information to nodes that they know, etc. That way it ends up getting around the whole network pretty quickly.

Some nodes are mining nodes (usually referred to as “miners”). These group outstanding transactions into blocks and add them to the blockchain. How do they do this?

Solving the puzzle

How do they find this number? By guessing at random. The hash function makes it impossible to predict what the output will be. The resulting hash has to start with a pre-established number of zeroes.

Bitcoin saw a rapid decline of 30.9 per cent in January 2015 – the month has a history of being bad for virtual investments.

The first miner to get a resulting hash within the desired range announces its victory to the rest of the network. All the other miners immediately stop work on that block and start trying to figure out the mystery number for the next one. As a reward for its work, the victorious miner gets some new bitcoin.

More than 5,000 websites have been flooded by the malware. Software known as Coinhive, which quietly uses the processing power of a user’s device to mine open source cryptocurrency Monero, appears to have been injected into the compromised BrowseAloud plugin.

Texthelp, which operates BrowseAloud, took its website down on Sunday while it tried to resolve the problem.

The National Cyber Security Centre confirmed the issue was being investigated, adding there was nothing to suggest members of the public were at risk after the malware attack.

Scott Helme, an IT security consultant, raised the alarm about the malware after he received a message from a friend whose antivirus software had detected an issue after visiting a UK government website.

“This type of attack isn’t new – but this is the biggest I’ve seen. A single company being hacked has meant thousands of sites impacted across the UK, Ireland and the United States,” Helme told Sky News.

“Someone just messaged me to say their local government website in Australia is using the software as well.”

A spokesperson for the National Cyber Security Centre said: “NCSC technical experts are examining data involving incidents of malware being used to illegally mine cryptocurrency.

“The affected services has been taken offline, largely mitigating the issue. Government websites will continue to operate securely. At this stage there is nothing to suggest that members of the public are at risk.”

Meanwhile, leaders from around the world could be set to hold talks on Bitcoin at next month’s G20 summit after French and German officials called for a discussion on cryptocurrencies.

The finance minister and Central Bank Governors of France and Germany have requested that talks on policy and monetary implications of cryptocurrencies are part of the agenda for March’s meeting.

The officials put forward their request in a letter to the finance minister of Argentina, who currently hold the G20 presidency.

They said: “We believe there may be new opportunities arising from the tokens and the technologies behind them.

CPU Mining considerations

We’re assuming that you have a mid-range computer, which you don’t currently use. You can set the highest possible hash rate for your setup. Profitability will vary based on the cost of electricity in your city. Also, more computers mining simultaneously is better.

So if you have a spare computer lying around at home, install minergate on it and here are 5 coins that you can mine successfully with your CPU –

Bytecoin

It was one of the first anonymous cryptocurrency going back to 2012. Again, not exclusive to CPU mining.

DigitalNote

You might have heard of DigitalNote as DarkNote or duckNote. Along with being a digital currency, it is an encrypted and untraceable messaging system. It uses peer-to-peer technology and fair ASIC-resistant PoW mining process to operate with no central authority. It is based on the CryptoNote anonymous technology and is a CPU mining exclusive.

AEON

AEON is a digital currency with a mobile-friendly offering. The USP is that it’s a lightweight cryptocurrency with the same privacy benefits. You can think of it like a lightweight Monero. With respect to profitability, it just about covers the cost of running an average computer at full power. Furthermore, it is a CPU exclusive.

Monero

Monero is one of the most popular CPU minable cryptocurrencies. It’s famous for the complete anonymity it provides to senders receivers.

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