Mining, explain the use like I'm five.

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LoneB

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Aug 19, 2008
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One question: what do miners produce?

Huge amounts of energy is used with mining.
I googled it for a while and all I get is how it works, but the best answer I can get for ' what does it do ' is... "Solving math problems".

Really? Whose math problems?
It it like SETI Folding @ Home?
Are universities curing cancer with the help of miners?

What is generated, calculated, produced or what service has been offered for the currency they're getting and who pays for it?
You can't just generate money out of plain nothing, right?

Someone ?
smile.gif
 
Yes it generates money out of thin nothing and if you do it properly you can actually become rich doing it. If you have the right gpu it's a no brainer. I don't expect this to last though. You are kind of late to the game. And you have to know the right coins to mine. Try nicehash if you're just curious. Then if you're more serious do things there proper way.
 
Well for one, you'd have better luck over here -> https://hardforum.com/forums/mining-cryptocurrency.137/

This video here -> will explain how Bitcoin works (including the whole mining/blockchain thing). While it's not how all of the coins work, BTC is the most popular at the moment.

Long story short, the "math problems" are used to verify transactions are legitimate, and you earn coins for the trouble of solving those math problems. Not sure if that was the kind of depth you were looking for, there are tons of other coins as well, and as I said, the cryptocurrency sub is where you wanna be for these kinds of questions.
 
"Long story short, the "math problems" are used to verify transactions are legitimate, and you earn coins for the trouble of solving those math problems"

Thanks, this is what I'm looking for.
Basically a 'miner' provides a service to buyers/sellers/ by verifying their 'ledger' and gets paid for it.

Ok! thanks ^^
 
LoneB said:
"Long story short, the "math problems" are used to verify transactions are legitimate, and you earn coins for the trouble of solving those math problems"

Thanks, this is what I'm looking for.
Basically a 'miner' provides a service to buyers/sellers/ by verifying their 'ledger' and gets paid for it.

Ok! thanks ^^
Click to expand...
You're basically selling your GPU processing power for money.

I have been mining Ethereum but it's becoming more profitable to mine other coins. I'm mining something called "Skunk" now, it's worth 4 cents a coin. If it ever goes up to $1000USD per coin, I will be worth $5 million USD for every month that I mine them at the current rate. Even if it goes up to $20 per coin or something, I will still turn a massive profit.
 
LoneB said:
One question: what do miners produce?

Huge amounts of energy is used with mining.
I googled it for a while and all I get is how it works, but the best answer I can get for ' what does it do ' is... "Solving math problems".

Really? Whose math problems?
It it like SETI Folding @ Home?
Are universities curing cancer with the help of miners?

What is generated, calculated, produced or what service has been offered for the currency they're getting and who pays for it?
You can't just generate money out of plain nothing, right?

Someone ?
smile.gif
Click to expand...
It solves arbitrary formula based on math that is only important to them in the trade of money.
Once the arbitrary money is all 'solved" all transactions are just like regular money that you never see anyway.

There is no "Fed" or centralized banking, there is no printing press and once it is all "virtually made" there is no inflation.

If you want to get rich from it you would need a time machine to go back 4 years or have a massive state of the art mining farm with cheap electricity. Or if you were really, really smart and had some influence, start your own crytocurrency.
Almost none of it has "tangible" value. You cannot feel it in your hands and or stuff it in jars in the back yard.

I had considered starting a crytocurrency with and intrinsic value when this craze started that would have an intrinsic value. Seeing as how ammo prices were going through the roof,, I had considered "Guncoin" as each virtual coin would represent a single .22 cartridge as backing. So if you wanted to exchange your coins for ammo, jus bank out.
Actual US dollar bills are worthless as they are only backed by a "promise" and at one time was backed by gold that you could "bank out" and take the gold.
Real life Banking today, is mostly on ledgers and there is not enough actual "paper printed bills" for all the money in banks.
The same us with the world banks that use gold for trade. They are kept in a safe with a countries name under it. They just use forklifts to move the metals from one square to another with trustees to verify that the money is moved, it doesn't actually "go" to another country.
When Tillerson gives a country "millions" as part of his job as Secretary of State, he does not bring boxes of cash with him, he just calls the bank and asks them to move the money.
Mining in cryptocurrency is basically, the work of those trustees. they move money and verify it with the math.
 
LoneB said:
One question: what do miners produce?

Huge amounts of energy is used with mining.
I googled it for a while and all I get is how it works, but the best answer I can get for ' what does it do ' is... "Solving math problems".

Really? Whose math problems?
It it like SETI Folding @ Home?
Are universities curing cancer with the help of miners?

What is generated, calculated, produced or what service has been offered for the currency they're getting and who pays for it?
You can't just generate money out of plain nothing, right?

Someone ?
smile.gif
Click to expand...
Miners produce accepted currency.

Huge amounts of energy are used to produce regular coins. Coin contents rarely equal its value. So where does the magical increase value come from in regular coins?

Why of course universities that can accept like Bitcoins for donations could help research cancer cures - I am sure that is happening. Or folks that got rich mining donating some of their profits to a good cause.

What is produced is a secure method to do transactions not limited by governments which has its own value.

Really the bottom line is people put value in it which makes it, well valuable.
 
It's a complete waste of time unless you have a bit coin mining warehouse in China and buy Gold bullion with the Bit Coins.
 
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Listen up, its simple...
You got your dopecoin, ransomcoin, laundercoin, and poopcoin.
Just walk away if other kids ever pressure you to mine for poop.
 
Comixbooks said:
It's a complete waste of time unless you have a bit coin mining warehouse in China and buy Gold bullion with the Bit Coins.
Click to expand...
No it's not! When someone says this it just shows they don't know shit about crypto and aren't willing to go in depth to understand it. I making 2-4k a month in crypto. Yea tell me it's a waste of time. Smh.
 
LoneB said:
One question: what do miners produce?

Huge amounts of energy is used with mining.
I googled it for a while and all I get is how it works, but the best answer I can get for ' what does it do ' is... "Solving math problems".

Really? Whose math problems?
It it like SETI Folding @ Home?
Are universities curing cancer with the help of miners?

What is generated, calculated, produced or what service has been offered for the currency they're getting and who pays for it?
You can't just generate money out of plain nothing, right?

Someone ?
smile.gif
Click to expand...

It takes time and loads of reading and research to understand. If you aren't willing to do that you won't understand it. I am just being honest. In short, you are executing contracts. Like an app, or banking transactions are running on ether network, call it blockchain. You contribute your share on exexuting it you get paid commission. Easiest way to explain it without confusing the shit out of you, lol. There is a lot of stuff running on eth blockchain and you are contributing to help with eth network transactions and getting paid out in coins.
 
Mining - probably one of the most interesting things of this decade.
I don't understand when people call it a waste of energy though, you are making $s - how is that a waste?
 
a3venom said:
Mining - probably one of the most interesting things of this decade.
I don't understand when people call it a waste of energy though, you are making $s - how is that a waste?
Click to expand...

Because in several cases these blockchain networks use more energy then entire countries.
 
tacohunter52 said:
Because in several cases these blockchain networks use more energy then entire countries.
Click to expand...

but if I am making 100$ a month for free, why should I care about any of that? or anyone who's making money from it

Let's say the steel industry uses a lot of power in factories (more than small countries) - how is that a waste? Should we stop producing steel?
 
Well you are contributing to diminishing the planets resources for something that is immaterial, unlike steel...

Personally I don't care. I mine, have been for a long time.., but the massive amount of energy used in mining is why people say it is wasteful

Edit: I guess I should also say that crypto currencies don't even necessarily need gpu/asic mining
 
Yes, mining burns a lot of electricity, that is a good point and it is a legitimate environmental issue to consider. Where I live we generate clean power. Not a single coal fired power plant where I live. If you live in a place like the USA or China where they have "dirty" power systems that burn a lot of coal, though, yes, you are contributing to global warming and pollution where you live.

In my own case my undervolted GTX 1070 cards in SLI are consuming a total of 200w under load. Less than my 75" TV. Not terrible. Maybe $20 month in electricity.
 
By the way, guys, here is my mining guide if you have nVidia hardware:

1. Download NemosMiner from here:

https://bitcointalk.org/index.php?topic=1777336.0

Version 2.1 is the latest version.

2. Extract the zip file to a folder. Then, edit "start.bat" in notepad. Replace the contents with the following:

powershell -version 5.0 -noexit -executionpolicy bypass -windowstyle maximized -command "&.\NemosMiner-v2.1.ps1 -Currency BTC -interval 90 -Wallet YOUR_BITCOIN_WALLET -Location US -PoolName zpool -Type nvidia -Algorithm neoscrypt,MyriadGroestl,c11,skein,hmq1725,skunk -Donate 0

Replace YOUR_BITCOIN_WALLET with your wallet address. I recommend using Jaxx for your wallet, it's extremely simple and easy to use. Not as secure as a local wallet but I really like it.

3. Run start.bat. It will benchmark your system on the various coins. Once it has benchmarked all the coins, shut down the mining (you will need to close two windows). Then, edit start.bat again and replace -interval 90 with -interval 3000. -interval 90 is useful for benchmarking but once you're actually mining it's much better at 3000. Otherwise it will switch coins every 90 seconds and I have found this can result in instability.

Anyhow I hope that helps! That should give you more than double the profits of Ethereum. You can monitor your mining at zpool.ca. They will pay you out every Sunday evening so long as you have met the minimum threshold.
 
Mining is fun! No doubt about that. And We "waste" several countries electricity per day on other kinds of fun in this world.
 
Seti could be consider waste of power all these years. How many Aliens have you seen lately? :athumbsup: And not on a tv show or movie!
 
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