Bitcoin Mining

Posted on by jordanhaines

Yes, I am now Bitcoin mining.  but Why?

Well I am interested in this new up and coming currency and to see where it goes.  So I thought I would set myself up and see how much I could mine.  You never know, I might make some money lol.

Bitcoin this month peaked at $900 per Bitcoin and more and more companies have started to take Bitcoin as a valid payment type, After the financial crash of 2008 it has come clear to me that the people running the banks have no idea what they are doing and seem to have got way bankrupting the world and causing everyone to lose their jobs.  A new system is needed and I am wondering if Bitcoin could be part of that answer.

What is Bitcoin?

Bitcoin is a decentralised virtual currency, meaning neither does it exist in the physical world, nor does it have a central bank such as the Federal Reserve or the Bank of England. There are also a finite number of bitcoins in the world, with a limit of 21 million bitcoins set to be reached by 2014.

Setting up with Bitcoin

To start with Bitcoin, you need to set up a wallet.  This is where you can send and receive payments of Bitcoin.  There are two solutions to this you can either use a program on your computer like Multibit or you can use an online server like Blockchain. I personally went with the online service as I use different computers and it was easier to have an online wallet.

 

The second thing you will need to set up is a mining account with a pool, Now you can mine your own but its easier to mine as part of a pool.  I chose Slush’s pool, All you have to do is sign up and give them your Bitcoin address which you will get from your wallet.  This is so Slush’s pool get pay you your bitcoins when you have mined them.

The last thing you need is to set up mining app on your computer.  After much internet research everyone was telling me to use GUIminer but I could not get this work so after trying a few others I finally found MacMiner and got that to work.

Basically the computer my mining app is running on sends all the information to Slush’s pool site and there I collect my fractions of Bitcoin, Once I get to a certain level then I am paid.

Thats it really, I have leave my computer on all the time anyway so it might as well work 24/7, So give it a go and see how much Bitcoin you can mine.

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