Bitcoin For Beginners – Learn How To Mine Bitcoin ! – Part 1

Posted at September 28, 2017 by admin on category All about Bitcoin

Hello and welcome to my Bitcoin for beginners tutorial now in this video tutorial I’m going to cover what Bitcoin is how to mine it and some tips and tricks that you can use to make more money mining Bitcoin I just want to start off by saying if you want to skip the tutorial everything that I’m going to talk about is in the video description and it is labeled accordingly so you can just click on the video description download the mining software click on the link to view a calculator and try and figure out how much money you’ll make per week or per month and it kind of just run with this stuff on your own but if you want to watch the tutorial let’s begin so the first thing that I want to touch on is what bitcoin is bitcoin is a new online digital currency it’s been around since about 2009 but just recently has gained a lot of popularity and now today one bitcoin is worth a hundred and sixteen dollars now you might be asking yourself well I don’t understand why is a Bitcoin worth so much what is a Bitcoin now a Bitcoin really isn’t anything it doesn’t represent anything other than a number 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 US dollars for example or you can allow your computer to mine in 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 so you might say well I’ve heard that bitcoin is a scam or I’ve heard that bitcoin is a Ponzi scheme well not really essentially what’s happening here is that we’re allowing the Bitcoin network which is a Napster like peer-to-peer network to use our computer to process information and so every time our computer is processing information it’s allowing the entire financial network to operate 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 so Bitcoin harnesses the internet and all of the computers on the Internet in order to process all of these transactions and that’s why it’s not a scam or a Ponzi scheme now the price of a Bitcoin may be inflated and by the time you watch this video the price of a Bitcoin may be more than one hundred and one hundred and sixteen dollars or less than one hundred and sixteen dollars so let’s get started the first thing that I want to show you is the Bitcoin wallet now I’ll provide the download link to download the Bitcoin wallet go ahead and download and install the Bitcoin wallet I’ll open it up for you just to show you what it looks like it’s already running and here it is it’s a very very simple program it doesn’t do much here’s my overview you can see I’ve received three transactions recently and so once you download the Bitcoin wallet and run it it will attempt to sync with the entire network and you’ll see a little progress bar down here at the bottom and it will begin to sink now go ahead and leave it alone let it sink there’s nothing that we’re going to do with this right now but we need it for later in the video tutorial so after we download the Bitcoin wallet we’re going to have to download a minor program now there are a number of different mining programs out there see G minor the F minor these require a little bit more background knowledge and so I wouldn’t recommend them for the beginner so go ahead and download GUI minor you can find the download link in this video’s description once you download GUI minor run the minor and you will see something similar to this screen now you probably won’t have all of these tabs but all we need to do is click on file new miner open CL miner and we’re going to give this new miner and name so you can name this whatever you’d like I’ll call this test miner for beginners great and that will show us a screen similar to this but we don’t have a username and we don’t have a password and the server is the pool that we’re going to join and that brings me to my next point well what’s a pool 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 there this is a really good chart of the pools that are currently available BTC guild is the largest pool followed by I believe bit mentor and 50 BT C which are looks like they’re equal at 16% I’m going to show you slushes pool and the reason why I’m gonna show you slushious pool is because I’ve had really good success with slushious pool I’ve tried Allu giuse which just wasn’t working out for me I wasn’t really making much progress BTC guild for some reason I was making zero progress I’m not sure if I had everything set up correctly bit mentors is pretty popular deep bit as popular but I’m going to show you slush pool so the first thing that we need to do now is join a pool so to join slush pool we’re going to type in this website here mining dot Bitcoin dot cz and that’ll bring you to just flushes pools main website we can click here to sign up it’s totally free all you need is an email you create a password once you create an account you’ll be brought to a screen right here now you can see here Bitcoin address that is something that we’re going to get from our wallet so let’s go back to our Bitcoin wallet and let’s go click on receive coins and we’re going to click on new address and we’re going to give that new address a label so I’ll give that let’s say slush pool for beginners address so once I do that you can see it pops up here in this list and what I want to do is right-click copy that address the string of code right here I’m just going to paste it right here I’m just gonna paste that address there and so we’re going to keep the send threshold at 0.01 these are just some statistics that will show you basically where you’re at in mining we’re going to save these settings now we need to create a worker so we’ve already figured out how we’re gonna get paid now we need to create a worker and this is kind of like a login and password information so we’re going to register a new worker and we’re going to give this worker a name it can be anything that you want I’ll just type in beginner I’m gonna give it a pass or I suggest just something simple one two three will work leave everything else the same click on save and you’ll see here that it will create your worker now this is what we need to copy copy go back to our miner and now we’re going to paste the worker username see I’m under that minor that I just created I’m going to paste the username the password was one two three and the server is the pool and so you can see there are a bunch of fools but I’m showing you slush this pool so I’ll select slushious pool and next to device this is where we can see which device we’ll be using we have my Intel i7 processor and then we also have our graphics card processor you want to select your graphics card processor that’s about a hundred times faster than just your standard computer’s CPU CPU affinity I’m just going to keep that at zero and all we need to do is click this button boom start mining now we’re going to also click on view show summary and that’s going to actually show us a nice little summary of all of the activity in our mining program and all of our workers that are mining so you can see here test miner for beginners I have it mining the only reason why it’s only a two point one is because I’m already using all of my CPU power in my previous miner so I’m just gonna stop that and so you can see here I’m mining at a hundred and thirty one mega hashes per second and I’ve only started this up within the last five minutes I’m already up to one hundred and ten shares that have been accepted and I have zero sales 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 you’ll have a number under this column and that won’t be counted towards your payout so every time you get an accepted share you get paid now that’s really all we need to do now your computer is mining so the next thing that you should do is let’s try and figure out how much money we’re gonna make with this speed and so how we do that is we use a calculator a Bitcoin mining calculator so I’m going to take this number here 130 mega hashes per second and I’m going to go to this Bitcoin calculator that I found that I like that’s great so I’m also going to include this link in the video description go ahead and click on it and this is a Bitcoin mining calculator it’s great so we can enter in our mega hashes per second which is one hundred and thirty you’re probably going to have a different number it may be higher it may be lower and this is where we’re going to enter how many watts our computer is using so I have an 800 or an 850 power supply in my computer now whether my computer is using all that power or not is debatable I don’t think it is some you know I’ll just put 400 425 I’ll split the difference whoops 425 at 130 and your cost per kilowatt now this is the cost of electricity where you live now if you’re not sure where or if you’re not sure how much the cost per kilowatt is you can always Google that so let’s just say that it’s 12 cents per kilowatt let’s just say I didn’t have to spend anything I’m just using my normal desktop computer and let’s just run this thing for a month now today bitcoin is worth one hundred sixteen dollars will keep the difficulty just whatever it says because that’ll change and the difficulty percent per month I’m actually just going to keep that at one and this is 25 which is correct and I’ll just click on calculate and let’s see how much I make well it looks like here that in 24 hours I’m actually going to make 68 cents but it’s gonna cost me a dollar in 22 cents in power so that’s a net loss of 54 cents so it looks like in 24 hours one month one year thirty days one month I’m gonna lose 16 dollars because I’m gonna have to pay 36 dollars in electricity bill so this will give you an idea of if you’re going to make any money or not so then the question is well how what do I have to do in order to make money well the answer is your mega hashes 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 3000 mega hashes per second which equates to 3 Giga hashes so 3000 mega hashes per second let’s just say I’m and actually this number right here is probably wrong my computer probably doesn’t take 425 watts let’s but let’s for this example let’s just keep 425 watts 3000 mega hashes per second let’s say the cost of electricity is a little bit higher let’s say it’s 0.18 per kilowatt hour cost of hardware let’s just say it cost me $500 maybe I had to buy a new graphics card time frame 30 days I’m gonna bump that up to 93 months keep all those settings the same calculate so you can see here that a 90 days three months after spending five hundred dollars I would have made one thousand two hundred thirty-nine dollars I mean that’s pretty good now these numbers obviously will change depending on what your computer specs are how much power you’ll be using but that will give you just a general ballpark idea as to how much money you can make with your computer so just to quickly answer any question that you might have in order to get this number higher this mega hash per second we need a faster graphics card and so a really good website that I’ve found is this one here it will basically compare all of the graphics cards that are out on the market today so we can scroll down here a little bit and so it’ll give you AMD ATI Radeon graphics cards here is the model number and it will tell you the mega hashes so you can kind of guesstimate what your mega hash 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 order to do that you need to make sure that you have enough power to do that so let’s just say you had 259 70s running at 704 mega hashes per second times 2 that’s 1408 so we could go back to the calculator we get put in 1408 just bump keep that at 425 this is just all guessing right here I don’t know what your numbers will be but you can see here that in one year thousand 494 in one month or I’m sorry 90 days so just these are just some resources for you to check out and kind of experiment with 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 and you’d be able to figure out what your mega hash per second rate is so that’s it that concludes the Bitcoin for beginners tutorial let us know what your mega hash per second is let us know what you’re working with or if you have any questions leave that information in the comments section below thank you so much for watching and good luck

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