Bitcoin is a digital coin (crypto-currency) that is managed through the p2p network (there is no connection with Bit Torrent), and the transactions are validated by many computers. The work done by those computers is rewarded.
At the base of the Bitcoin system, we have a well defined system of encrypting, and practically, all the transactions are safe. A Bitcoin can’t be spent two times, it can’t be falsified, and it can’t be the subject of frauds. Moreover, as the total number of bitcoins was established at 21 millions until 2033, inflation would be avoided.
How to obtain bitcoins
Before speaking about methods to make (create) bitcoins, you will have to know about the other methods that can be used to obtain those. The market is a free-floating one, meaning that the price is established considering the demand and offer. Fortunately, during the latest period, the demand for bitcoins is huge, so the value can only go one way: up.
- You can sell products for bitcoins
- You can buy bitcoins with dollars and Euros
- You can work for bitcoins
- You can let your computer mine for bitcoins
Where do I start?
- You need to download the client (wallet) from bitcoin.org, and this way, you are allowed to send and receive bitcoins.
- For your security, it is important to backup your files periodically, and to keep the backup file on your mail, so you would feel safe all the time.
- You must enroll in a mining pool, from where you can make money (bitminter.com, 50btc.com), and from there, you will need to download a program for mining.
What is bitcoin mining?
There are two solid applications that can be used for mining. Actually, there are many of those, but we will present the most popular of them.
BitMinter is a great application, with an interesting interface that allows setting some parameters for hardware and software purposes, and it is the most preferred one. If you want to use this one, you will have to open an account on bitminter.com, as there, you can modify some settings such as the automatic payments from your Bitcoin account.
GUI Miner is a less nice application, but it works, and it has the advantage that you can start mining rapidly, by joining a pool without too much hassle.
On any pool, there are some small commissions that you need to pay each time when you make profit, or each time when you make a payment. Don’t be scared if you have the impression that somebody steals your money, as those are only commissions, which are approved, accepted and known, commissions that will be paid in exchange for services.
How much bitcoins can you make?
Now that you know the technical matters behind the bitcoin principle, it is time to analyze profitability. According to the data from BitCoinWatch.com, the network that has the biggest percentage of generated blocks is DeepBip. Here, you can obtain constant incomes, hour after hour. In the case of individual mining, the profit is bigger, but it occurs rarely and it can’t be predicted. You might wait for weeks before receiving the big prize, 25 BC, which is offered for generating a block.
Although you can mine from any hardware configuration, The GPU from ATI is more performing than the ones of NVidia. If you already have it, you are lucky. If not, it is better to think about buying one even before starting to mine.
There is also the possibility to eliminate hard disks and CD-ROMS from the unit that you will use for mining, to decrease the consumption of energy. In full load, the system consumes about 350 Wh.
Another great idea would be to boot a Linux distribution with a special mining program that works for this operating system, LinuxCoin. The program already has the necessary ATI drivers, and mining software. Moreover, you can overcloack your video board for better results. You can obtain about 300 MHash/s. with a few modifications: an increased RPM for the fan of the video board, and overcloacking of the video board. You must be prepared for some noise, as the video board will be solicited at its maximum.
In this configuration, the system mines 300 MHash/second, which means 0.2 BTC/day, meaning 6 BTC/month. As said before, it is not possible to say exactly how much money this means in Euro or USD, as the exchange rates changes from one day to the other. However, you must consider the electric energy consumption, which is increased significantly from what you are used with.
The conclusion is that you can make profits generating BTC. The scenario presented here implies for the system to work 24 hours a day, so maybe it is a good idea to buy a performing system that you can use only for mining. The best idea would be to buy a computer that supports three video boards, with no significant RAM capacities. The computer doesn’t even need a hard drive, as everything can be run from the USB flash.