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  1. #1
    Trader Azis Muslim's Avatar
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    Blockchain. All about this and miners

    Blockchain



    In general description, Blockchain is well-known for its quality to provide crypto currencies exchange for people who want to trade any of currencies to specific values in United States Dollar (USD), Euro (EUR) and Chinese Yuan (CNY). It is one and first bitcoin website that got its first popularity in 2013 with millions of page views from people who interested and curious about how bitcoin working. Blockchain has 2 different websites, they are blockchain.com and blockchain.info. I think this is the only legitimate and trusted website for people to trade their bitcoins for real money whether people got the bitcoins from mining or trading. Even blockchain is not owned by central authorities, people still believe in it.

    Blockchain also provides another things as well for their registered and verified members. They are:
    1. Wallet for members to keep their earned bitcoins,
    2. Updated information regarding to bitcoin value and exchange rate to specific currencies,
    3. Numbers of bitcoin earned and traded by people,
    4. Marketplace for selling and buying bitcoins to money or vice versa,
    5. Member Area for people to manage stuffs about our account.

    No matter who we are and how we earn bitcoins, Blockchain is the only best place for us to complete our final transactions and withdraw the bitcoins into money. I am saying this overtime because this is the best website I know so far from long time to provide people worldwide the needs of bitcoins transaction. It has been proved its excellence for years when bitcoins has not so famous and started its price from $200 for 1 BTC I remember until now.



    How does Blockchain work?



    Since blockchain has the services provided as place to keep our earned bitcoins or other crypto currencies then we also trade it at the same place with blockchain too. I think blockchain is one-place-fits-all place for miners to do any activities regarding to crypto mining and their transactions. The blockchain technology is probably the best invention since the internet itself. It allows value exchange without the need for trust or for a central authority.

    The blockchain technology is interesting because it offers us a third option which is secure, quick and cheap. Blockchain allows us to write a few lines of code, a program running on the blockchain. Each party can check the contract logic, and once it’s running on the blockchain it can’t be changed or stopped. So whenever and whatever happens between traders who already had the deal of bitcoin transactions, it can not be stop and must be carried on until it is finished.

    Here blockchain plays a part as Ledger and we crypto miners validates our new transactions and record them to blockchain. Later for miners to receive any crypto currencies, first they must compete to solve a difficult mathematical problem based on a cryptographic hash algorithm. The solution found is called the Proof Of Work. This proof proves that a miner did spend a lot of time and resources to solve the problem.

    Block (the structure containing transactions) is mined every 10 minutes. When a block is solved, the transactions contained are considered confirmed, and the bitcoin concerned in the transactions can be spend. So, if we receive some bitcoins on your wallet, it will take approximately 10 minutes for our transactions to be confirmed. Does not matter how fast we use the mining tools, we will only get the reward for each 10 minutes per block solved. Why 10 minutes? That is the amount of time that the bitcoin developers think is necessary for a steady and diminishing flow of new coins until the maximum number of 21 million is reached which expected some time in 2140, could be faster or longer nobody knows this precisely.

    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, we just need to download the software for free and leave a certain port open. Nodes spread bitcoin or other crypto currencies 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.

    The ledger file is not stored in a central entity servers, like a bank, or in a single data center and once again, has no central authority from no governments. It is distributed across the world via a network of private computers that are both storing data and executing computations. Each of these computers represents a node of the blockchain network and has a copy of the ledger file. Usually a singular data savings like this could last longer and hard to get hacked by non-responsible traders.



    Crypto mining & its miners



    Miners in crypto currencies market are knows as people who responsible to seek any crypto from various methods. Mostly they are mining bitcoins from the start and they are using special software which designed to solve math issues to finally earn portion of bitcoins throughout that programs or software. This process is what miners periodically do non-stop until they gathered enough bitcoins inside their wallet so they can exchange it through Blockchain into USD and transfer the money to their bank account.

    Mining is not about creating new bitcoins because it is the mechanism that allows the blockchain to be a decencentralized security and turn people to be miners, not literally manual miners but it is automatic. It secures small to average portions of the bitcoin from the system and enable that system without a central authority. Do not confuse the rewards given to miners with the process itself because that small portions are the reward for miners after they have solved the codes and puzzles from the mining ground.

    Is this mining activity illegal or legal? Do not worry, this is legal because we will be using approved software only and this is not some kind of hacking tools which take or steal some other people's money. The more difficult the puzzles we are going to solve then the bigger rewards we will get later. This is why I will specify another terms which people must follow in order to get stable bitcoins overtime:

    1. Basic to core knowledge about bitcoin mining
    This is obvious to know before we can start everything first we must understand how the system works and we understand about possible risk and reward that may happen during our activity in mining. Here we must be ready for anything and be sure to take all the decisions wisely and patiently.

    2. Initial capital (may vary depending on your Country and electronic's price)
    Bitcoin mining may not suitable for many people because to get bigger money, one must be ready to prepare huge capital first to buy stuffs we need to make our mining process has faster earning ratio. So stop hoping to get a lot of money if we only have few instruments for mining because this one is considered as expensive business.

    In simple calculation if we are only using one method of mining with GPU (graphics processing units) may cost up to:
    - A VGA card = $25 to $500
    - A PC with high spec to monitor our mining process = $200 to $500
    - 24 hours/30 days for non-stop electricity for one GPU mining = $10 to $30
    - Internet connection = $10 to $20 a month

    This is minimum cost for minimum instrument for mining. Mostly miners are using many VGA cards to mine and arrange them into several rigs. Usually in one right, there are 6 available VGA cards inserted there. So if we expand the example to use at least 5 rigs then there will be 30 VGA cards we use to mining. Then the costs will be automatically increased.
    - 30 VGA cards = 30 x $250 = $7,500
    - 5 rigs = 5 x $25 = $125
    - 24 hours/30 days for non-stop electricity for 6 GPUs mining = 30 x $10 = $300 minimum
    - Internet connection = up to $100 a month

    3. Fast and stable internet connection (online non-stop)
    A good miner should have known that slow internet connection is one disaster he must avoid for any reason. If there are any interruptions from internet connection, then it could lead into rebooting works and the mining progress will be restarted immediately. So try to use 4G internet connection and let the internet do the job.

    4. Supported software and hardware (CPU, GPU, FPGA, ASIC, and Script mining)
    I have explained the price above and remind this again this is an expensive business to start. Unlike forex trading we can start this with as minimum as $10 as initial deposit and we can use to trade with minimum specs of PC or laptop without worrying about our high specs. But there are differences for mining with their own devices too.

    - CPU, it is the first hardware miners used to get Bitcoins. But due to slower mining process and may cost to further errors from different parts of CPU then many miners avoid using this to mine bitcoins because it is less effective and costs bigger with smaller earning.
    - GPU, this is what most miners are currently using now and they combined plenty GPUs into few rigs so they can make things arranged well and make them easily to monitor their hardware in case if there are any issues regarding to hardware error. GPU may cost expensive but they earn bigger bitcoin and faster process compared to CPU.
    - FPGA, it is one of bitcoin mining hardware developed by German company. This device uses chip technology with a price starting from $1 to $2.5 per MH/s (Mega Hashes).
    - ASIC, this device uses ASIC programming based of algorithm of SHA-256 GH/s (Giga Hashes). This hardware is mostly used by big Company of Bitcoin cloud mining which has expensive price among all kind of mining hardware.
    - Script mining, this also uses algorithm-based mining but has smaller rate of Bitcoins earned per seconds, about few KH/s to MH/s. The hardware uses is not so expensive and rather to cheaper one than ASIC mining.

    5. Air-conditioned room to keep the temperature as low as possible
    When we are depending our mining to hardware then we must aware that they are really vulnerable to break. To prevent those hardwares not easily broken we must keep them in stable temperature and avoid getting unstable degrees. I saw people on internet they shared how they manage this situation by placing all their rigs with all VGA cards inside a room full of 2 or 4 Air Conditioner with the lowest temperature and add multiple fans around the rigs to prevent hot temperature. Since the machine will work non-stop then we must do this to increase our hardware's life.



    Additional hardware for mining

    Beside of what I have explained about hardware for mining, there are another hardware which has bigger Hashes rate with advanced technology at the cost of good price. They may become another solutions for people to be a miner without using rigs full of VGA cards or something else.

    1. USB Miner


    Hashes rate = 2 - 2.8 GH/s
    Average bitcoin earning in 24 hours mining = 0.00004584
    Average power used = similar to common USB
    Internet connection = use PC or laptop connection
    Average price = starting from $40, price may changes

    2. ASIC Miner Block Erupter Cube

    Hashes rate = 30 - 38 GH/s
    Average bitcoin earning in 24 hours mining = 0.00069673
    Average power used = 200 - 280 Watt
    Internet connection = Ethernet /Lan ( controlled by PC)
    Average price = starting from $100, price may changes

    3. ANT Miner ASIC 180 Ghs


    Hashes rate = 180 - 200 GH/s
    Average bitcoin earning in 24 hours mining = 0.00330032
    Average power used = 320 Watt
    Internet connection = Ethernet / Lan / Wifi / Standalone (no need PC direct connection)
    Average price = starting from $450, price may changes

    4. Antminer S2

    Hashes rate = 1000 GH/s
    Average bitcoin earning in 24 hours mining = 0.01833509
    Average power used = 1000 Watt
    Internet connection = Ethernet / Lan / Standalone (no need PC direct connection)
    Average price = starting from $1200, price may changes

    and many more others with higher hashes rate and expensive prices.



    Bitcoin faucet. Free and easy way to earn money?



    This was my old method of getting bitcoin in tiny rewards but free. We visitors of the websites which provide the free bitcoins must do some steps or requirements first and complete them all to get the rewards. It was small but fun and not waste a lot of time because in my calculation if I kept doing that for months and years, I could earn plenty money right now. But since everything is too late now I long decided to leave any relationships with bitcoins and its friends.

    Various websites offers different tasks. Sometime they also provides games like roulette with random prizes which we can gather and send to our blockchain account. It is like ads clicking business but paid in crypto currencies, not direct money. This also has a multi level marketing system that relies on referral links. The more people we invited, the more money we earned in percentage amount from our follower's money. I think in my personal opinion, this is the best lowest budget way to make money from this market of crypto currencies.



    My Personal Experience with Blockchain and Bitcoin Mining

    I have never directly mining bitcoins from all methods I have explained above because I was just a person who seek pennies from bitcoin faucets provided by many websites probably in 2014 and 2015 I do not remember it sharply. That moment bitcoin price was still low and less people attracted to do mining or purchasing it. I worked with faucet system by spending hours of clicking for nothing and left the bitcoin right away to start over again with forex market. Lately found out that bitcoin has moved sky high back in 2016 till now made me regret nothing because I never earned anything from it.

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  2. #11
    Trader Azis Muslim's Avatar
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    Quote Originally Posted by Silhouette View Post
    Nice article you've got in here sir, well done. Talking about blockchain and how mining process running, I think you're explaining how miners make their coins mined through hardware mining and those devices surely has expensive price. Normally people who wants to be bitcoin miners, they're willing to spend about 5k USD to 10k only to buy all necessary mining tools for them. At second thought I think why would people want to do that only to get bitcoin? I would agree to them when bitcoin has 18k value but now it's really low, not even half of 18k now right?
    Here is the case when we compare between people who want to invest their money for cryptocurrency and forex market. Normally people think that cryptocurrency is more interesting to do not only by its high and significant increase but also we can invest our money safely by purchasing the coins and keep them inside our wallet/ blockchain account. This is easy to understand even for people who has not ever know this kind of business.

    After that, since last time in 2017 bitcoin reached its peak and started to go down in 2018 lower and lower again, people are trying to find some other options with cryptocurrency and then they decide to invest maybe with Ethereum, Dash, Litecoin, and many more. If Bitcoin price now is already high then we can take the option to invest with additional coins which I have mentioned before. Once again to clarify your question, people are interested more with cryptocurrency market because they have seen it by themselves the huge increase from Bitcoin. Whenever people has the proof about something, they will start believing in it.

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  3. #12
    Trader Senorita's Avatar
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    Understanding block chain will help us realize its the best place to store our cryptocurrencies. I use block chain to save my Bitcoin and they the best wallet I have come across. The block chain wallet are reliable and the normal miner fees are affordable too. It's also safe as we can activate a two tier verification procedure to avoid hackers to have access to our coins and this is good. My Bitcoin, Bitcoin cash, are all sorted up in the block chain network and this goes well for me.

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  4. #13
    Trader Silhouette's Avatar
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    I thought that we keep our purchased coins inside our account or something but there's a service of wallet called Blockchain which is secured and trusted to use. Since I am new to this kind of investment I'm curious to learn more about it and this thread provide me enough information to give me knowledge how to keep my coins safe with standard fees.

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    Ethereum had made headlines earlier this year when they expressed their desire to switch to the Proof-of-Stake consensus algorithm. Without ban, it has been reported that some mining companies are betting against this movement.

    Several mining companies have invested millions in the creation of specialized mining chips for ethereum, machinery that will only work as long as the network pays a new cryptocurrency to those who dedicate computer equipment to the effort.

    One such company is Linzhi, who is currently developing a new Ethereum ASIC that promises to be more efficient and powerful than any front chip. Linzhi CEO Chen Min is not too concerned with Ethereum's switching algorithms, in fact he seems to think it's a bad idea.

    The ASIC of Linzhi guarantees the revision of the previous designs of ethereum ASIC, highlighting the high improvements in energy efficiency and computing power. But, the mining chip will only work in ethereum if the blockchain maintains its actual code base.

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  6. #15
    Trader musiliu's Avatar
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    cryptocurrency mining is a power hunger process, with the current high price Cryptocurrency are trading at, it is very profitably if you are in a country with easy and cheap access to reliable electricity, if you could invest in the mining hardware and some cooling systems, you could make a nice return off your investment in passive income,

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  7. #16
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    Crypto currency trading can be difficult for a trader if he has lack of education regarding this newer form of investment. Bit-coin, Etherum, Ripple, Lite-coin, Zcash, etc. are various highly potential investable crypto currencies where a trader can make investment with an objective of earning greater profit. On the other hand, in the last few months, crypto currencies have experienced decrease in values. So traders should give attention to on acquiring knowledge first.

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  8. #17
    Registered user nsawork's Avatar
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    Quote Originally Posted by musiliu View Post
    cryptocurrency mining is a power hunger process, with the current high price Cryptocurrency are trading at, it is very profitably if you are in a country with easy and cheap access to reliable electricity, if you could invest in the mining hardware and some cooling systems, you could make a nice return off your investment in passive income,
    I have had the experience of mining cryptocurrencies in the year of 2018. I made investment in the cryptocurrency mining Rig of ethereum.

    I purchased high end graphics cards motherboard CPU Ram and LAN connection cables. I made significant amount of investment in setting up the mining operation in separate air conditioned room with air intake and exhaust so that the temperatures can be controlled.

    I had set up a remote monitoring using the simplemining operating system.

    There was a time that when I was making good amount of profits from Ethereum mining. But after August 2018 the market crashed and my mining operations stopped.

    Today my mining operations are closed and I expect around 6 months of more downtime for ethereum mining.

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