You want a decent 1200w psu amd 7950 or 7970s best value for money bang for buck so to speak a motherboard with as many pci slots as possible cheep stick of ram, cheap amd cpu, dont even need a case mouse keyboard or monitor or hard drive I use usb stick instead of a harddrive, you can pick up 7950s second hand from £150 a mobo about £50 cpu bout £30 used the powersuply is where you will and should spend your money as this is whats keeping you rig running

 

well I watched the video and im still none the wiser. your computer solves an equation to get a 64 digit answer and that converts to a bitcoin. why does that bitcoin suddenly have a real world value of $70? . and yes I am over 40

 

WTF!!!!!!! lol.

 

It was $70 it now fluctuates between 700-1200 its a commodity it cost money to create the currency so the currency has a price this price risea and falls depending on demand the huge recent hike was caused by media attention and china gold 2.0 buyers converting to digital currencys as these were previously illigal

 

Because Bitcoin is a decentralized system, you need a decentralized workforce to keep it running. Miners are this workforce, which help to keep the infrastructure running and are paid for their services in newly minted Bitcoins. This essentially just means they are paid by inflating the money supply, i.e. a tax on everyone who has Bitcoins.
If you decide you have the skills and resources to help run the Bitcoin network, you can become a miner and get paid for it. But it's also fine to just be a user of the system and enjoy a very cheap "crowd-sourced" infrastructure for digital payments.
Now, regarding the often mentioned "math problems": A miner takes a bunch of recent Bitcoin transactions and bundles them all up into one "block". This is essentially a kind of vote, where the miner says: Hey, I propose that these transactions should be accepted by everyone (they still need to follow certain rules, he can't just make up arbitrary transactions - but he can, for example, pick one of two conflicting transactions, essentially deciding which one wins over the other).
This bundling action is the "math problem", but I find that description fairly misleading. I think the following analogy is more helpful: Imagine all the transactions being differently shaped puzzle pieces. The miner tries lots of different combinations of putting theses pieces together to form a nice even, let's say, rectangle. If he succeeds, he announces his solution to the rest of the network.
The advantage is, that it is very easy to check a solution: You just look at it and see, whether it forms a nice rectangle. But if you want to change some of the transactions and put different ones in, you need to do the whole puzzle again. This slows down would-be attackers, who want to vote for a different set of transactions, as they need to solve their own puzzle first.
Each puzzle always refers to the previous one, linking them all in a chain (the blockchain). Think of that as the previous puzzle being shrunken down and acting as an additional, unique puzzle piece in the next one. Now if your transaction is part of a puzzle 6 puzzles deep into the chain, you can be pretty sure that no one will doubt it going forward. Because to change it, an attacker would need to supply a new solution for that particular puzzle with your transaction missing and then also re-solve all the other puzzles after that. Meanwhile the rest of the network is producing new puzzles, which typically means the attacker has no chance of ever catching up. This is the basic idea behind "proof of work".
Because producing these puzzles is an essential function of the network, we allow anyone who solves one to award themselves some new Bitcoins out of thin air.

 

i get the complex chain of puzzles made up by systems/users that get solved earn you some bitcoins part but what can you do with bitcoins in real life that gives them a real life monetary value that makes people want to trade in them? its a digital commodity that doesn't really exist so can you use them for real world purchases? who runs this system and who decided that only that certain amount of bitcoins will ever be minted?

 

The person who invented the bitcoin has remained annononous altho rumor belives he owns the worlds bigges exchange mtgox, you can buy a few things with bitcoins wordpress except them amazon are in talks to except them theres debit cards for bit coins very new in there infancy the problem with bitcoins is transactions have to be verified which can take up to a hour, the main selling point of bitcoin is the annononous aspect of the transaction, the system is run by the miners. The 21mil coins was original written into the bitcoin code and cannot be changed! There are load of project to make bitcoin more sustainable such as bitcoin nodes in space to keep the blockchain going in thr event of miners stoping mining, bitcoin check out systems such as okpay, acceptance by governments the uk now imposes a tax on income from bitcoins!!! Litecoin on the otherhand have much more practibility of being adapted intona real life currency as verification is much much faster.

 

I suppose a good Internet connection is required?

 

since the bitcoin doesn't actually exist as a hard object how reliable is this ? is their any guarantees that should you spend a lot of time and money mining for these bitcoins it wont go pear shaped before you can cash them in? either by the plug being pulled on the whole system or there being no demand driving the prices down like other comodities?

 

We're do you live pal and how much would it cost to get u to go out n get everything I need and come round n set it up for me!

 

it does amaze me though how some one anonymous can set up something like this, get people worldwide to buy into it and genuinely make money from nothing.

 

Crazy shit! I wan get on it

 

Anyone fancy selling me some bitcoins and could transfer via paypal?
Not really wanted to use mtgox again since sr was taken down
If only i had thought to keep some to.First order i done was for £500 and i got just under 100 bitcoins

 

I live in blackpool pal I can source 7950s cheep from £150 so around 600-700 for 4 gpus can also set up the system and get you up and running or I would be willing to talk you through it eiver way, bitcoins going no where people have made so much money from it and so many people have money tied up in the currency like I said private investors have put nodes in space not cheep ehh? What If the plug was pulled on your bank? This is decentralised no one but the buyers control thr price back in the day there was a guy in Sheffield called Vladd he had 51% stake and huge farms but the Russians didnt agree and forced him yo sell up, he put all his money into into developing asic miner and made 100s of millions preselling the miners to only go and hold the order for 3 month and using the presold rigs to mine himself shady but smart hes now gone quiet but is sitting on a good fortune

 

maybe im naturally suspicious of something that appears to have no material substance . I mean its not like anything hugely over valued over the internet has ever went tits up?

 

Ok ill get some wedge together and ill pm u pal defo interested in this

 

Rightly so you should be all them Nigerian princes out there and all that jazz, this is just something new and very very hard to get your head round! When my friend first introduce me it realy was in its infancy we had to wire money to Tokyo to get the coins and the apect of clicking send and hour long waits between money being sent and being recived, it not a practible currency at all but there money to be made!! Its bigger in the US than here, used alot for laundering I can wire or buy with cash bitcoins sent them untracibly to my wallet which is on a usb thumb drive than hide it whos gonna know im sitting on a fortune?

 

I am the same as you and that's why i never held on to them to make a profit just for buying stuff online so spending the same day as i receive them usually.
Still cray to think 500 quid 2 years ago could be worth over 100k now

none of you miners fancy selling any? only after about £200 worth

 

I only have litecoin and I cashed my stash the other day, your best buying some from ebay altho you wont even get 0.4 of a coin for 200 now and tell me about it buddy!!! They way I think about it it works both ways if we had held on no doubt it would of plumited haha where did you spend silkroad

 

Yeah man silk road...just wanted to avoid using mtgox for a while if possible but probably will do.
Was looking at litecoin as well but no where really accepting them yet that i know of anyway.
Going to try bmr next i think.Just shit as i had no probs ever on sr

 

Also lost .8 of a coin when it went down as left it in my wallet but had made in past by doing same thing so no great loss really

 

This is really really interesting. So i assume the better the set up the better the money you make.

I remember bitcoin from a few years ago but i really want to get into this minning.

Pm coming your way fezzielove.

 

 

So how do you run several gpu's from a single motherboard?

 

Slots + risers

 

So do the risers allow to run several cards from one pci slot?

 

The motherboard has 7 x PCI slots in total, risers are used for converting and moving the cards away from the motherboard ( heat issues )

 

Jesus you building another one as well danneth? Some money's worth gpus there.

 

I thought modern GPU's used PCI-e slots? This is where im getting confused.

My motherboard has 2 pci-e slots and 4 PCI slots for example.

 

What pool you lads using also??

 

Yeh the do your correct the smaller slots are pci express and 8x but you can use these slots for mining with risers as only parts of the gpu are utilised you can run a gpu on a laptop pci with a riser

 

Ahh I see. Thanks for clearing that up.

 

http://www.google.co.uk/url?sa=t&rct...apXfAxY8W3jEcw


So basically someone creates a digital currency of coins (21million of em)
A miner looks for the reciept of them/their movement(the math code bit) to prove they moved/legit...they then add the code they crac'd of say 000000145bch4dxx blah blah blah to the database (block) of which that block has say 100 other coin codes to find.....
When they find all coins/codes, finally completing a block, keeping the coins safe/system moving........
they then get paid in coins themselves....

that about right in laymans terms?

 

I am just thinking what the fps would be on bf4 pmsl..

 

Just another thought would the nvideas be better due to the cuda stuff or does that not help .??

 

Nvidias are actually awful for mining

Here's a rough list of all cards, it's the KH/s number you need to look at - https://litecoin.info/Mining_Hardware_Comparison


now looking like this

 

Yeh nvida are no good for mining thatd why the cards are sho cheap!! All open cuda is is the engine that allowz software to access thr gpu too use the cores for numerical applications I see about 12 months left in gou litecoin mining asics are in development by a lad in manchester and fgpa scrypt miners are due to be released in the coming months

 

So what does asics development mean and the fgpa scrypts mean for litecoins? What's the diffrence if it goes to that?

 

Fpga is field programmable gate arays so basicly gpus that are just for numerical applications use much let power and emit less heat have thr same power as a gpu at a fraction of the power cost, asic is aplication specific intergtrated circuit these use large amount of ddr5 and are simalry whist very different to a gpu these can only be used to mine but mine are a higher rate with low power consunption
Eg, 1 amd 7950 mines at 750khs using 200w costing £200 to buy
1 fgpa will mine at 750 khs using 20w of electroc and can be connected using usb allowing alot of fgpas to be run on single pc cost could be around 500-700
1 asic mine will mine at 75000 khs using 200w of elec using usb at a cost of around £2500 this all all estimated based on what happened to bitcoin wheb fgpa and asic first were developed

 

So basicly the hobby miner and people just making small amounts are priced out the game unless they spend £££ on more gear??