Anonymous asked: what kind of computer do i need to mine
With the new generation miners you only need a simple computer or laptop. Most mining hardware will work with a USB or ethernet connection and some are wifi enabled. Don’t spend too much on the computer. Spend your $ on the mining hardware.
Avalon Ships First - Implications
There’s a lot of panic and drama surrounding Avalon’s recent announcement that they have shipped the first ASIC Bitcoin mining hardware to their waiting customers. Many feel like they chose incorrectly, put their money into the wrong company and that this choice is going to impact them dramatically. Many fear that the difficulty will skyrocket and ruin their profitability, but how realistic are these fears?
Thankfully, Bitcoin being the wonderfully transparent system that it is, we can do a pretty good job at estimating the actual impact of Avalon’s ASICs, so there’s really no need for speculation.
We know quite a bit about Avalon’s first shipment. They claim to have 300 units going out the door at 60GH/s apiece, so we should expect to see about 18TH/s being added to the Bitcoin network, which is currently around 23TH/s in its entirety.
This means that the first Avalon customers to switch on their rigs will be, at current prices and difficulty, earning about $160 per day and paying about $1 per day in electric costs - until they’ve mined enough blocks to retarget the difficulty. The new power of the network will be about 41TH/s, so the first real retarget should increase difficulty by a factor of roughly 1.78, bringing the current difficulty of about 3.2 million to somewhere in the neighborhood of 5.8 million.
At this point Avalon miners will have raised the difficulty as much as they’re capable of and will be earning about $90 per day and paying about $1 per day in electric costs at my local rates - still not bad. Had BFL shipped first, given that their hashrates and initial costs are identical to Avalon’s equipment, the profit points would have been quite similar - but what would those profits look like after Avalon ships?
Well, the answer should be pretty obvious - Assuming that BFL doesn’t ship until after the above adjustments (but before subsequent rounds of Avalon shipping) their units, being equivalent in performance to Avalon’s ASICs, should reap about the same reward - around $90 per day, but with a somewhat less substantial $0.20 per day electricity cost to run. That may not sound like much, and at this stage in the game it really isn’t, but a net cost of $73 versus $370 per year to operate is likely to make a difference in days to come - after all, I have a feeling BFL is shipping quite a few more than 18TH/s worth of ASICs.
Anonymous asked: how do i download the bit coin miner software?
This site has a great list of bitcoin mining software options: Bitcoin Mining Software
Anonymous asked: Just getting started. I could spend the $ 1300 for the new chip. What is the difference between that chip & the lesser $$$ chip. Also, I have newer laptop. Should I buy a new PC with a fast processer? If so what is recommended, especially if I go with the new 60GH/s chip. What is average return on investment say for 6months of mining? Thanks!
The difference is measured in lightyears. No comparison. FPGA development stops when ASICs hit. You can use any old laptop. Don’t get a new one. www.butterflylabs.com just announced mining software for Android devices also. It is difficult to calculate investment ROI. Try this site: bitcoin profit calculator
Anonymous asked: What is a good signle GPU for bitcoin mining for <=$600?
Better to wait for delivery of ASIC miners. Check out Butterfly Labs. There are others (Avalon, ASICminer) but I think BFL has the best packaging and design and are better suited for the long run. They are designing 65 nm chips compared to Avalon’s 110 nm. They have the best bitcoin mining hardware available IMO.
Anonymous asked: I'm just getting into bit coin mining. I pre-ordered the Butterfly labs Single SC 60 GH/s. I am using an old Mac Pro. I realize I may need to buy a new computer once my Single SC arrives. What kind of computer systems should I buy, how much would it cost, and where is a good place to shop for one?
With BFL you can mine with an old used laptop or even an android device. I am running a FPGA single on a 7 year old laptop. You can get one on craigslist for cheap.
Anonymous asked: how do you mine
You will need bitcoin mining hardware. We recommend: www.butterflylabs.com
Anonymous asked: what is bit coin?
The best place to learn more is to check out: www.weusecoins.com
Anonymous asked: Hello! Is there a place on the web which explains how does the bitcoin is being created? Thank you!
The best general explanation can be found here: www.weusecoins.com