Mega Bitcoins mine Guide for Beginners

This post is not a simple tutorial, this is a real proposal and very interesting for those who want and propose to earn some money.

Bitcoins, this has been a very talked-about topic in recent times. And a lot of people still don't have a concrete idea of what it really is.

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The main questions are:

1-How does a Bitcoin wallet or wallet work?

The Bitcoin client automatically generates a wallet that contains public address pairs and their corresponding private keys. Public addresses are the ones you see – the ones you can make known to receive payments. Private keys, however, are only in your wallet (in the DAT wallet file).

Imagine that your public addresses are inviolable mailboxes that everyone can see, and where everyone can deposit bitcoins, but only you can open with your private keys. Each public address is "opened" with a specific private key and impossible to reproduce. If you receive 1 Bitcoin that was sent to one of your public addresses, the only way to eventually transfer the possession of that Bitcoin (from "send" to another person) is by using the private key that corresponds to that public address.

As long as you keep the wallet, you keep the private keys that allow you to have the bitcoins that controls that wallet. That's why it's advisable to keep backups of the DAT wallet file.

2 – Why will there never be more than 21 million of bitcoins?

The limit of 21 million imposing the protocol is arbitrary; What matters is that, according to the rules implicitly accepted by all those who use the system, that limit cannot be exceeded, nor can it alter the rate at which the monetary mass increases. In this sense, Bitcoin is absolutely predictable – something fundamental to a monetary system.

3 – When will the bitcoins cease to occur?

Bitcoins are generated as a reward for miners ' work, and this reward is halved every 4 years. Towards the year 2030 will have generated almost all the bitcoins that will come to exist, although the truth is that they will continue generating (less and fewer) bitcoins. In the long run they will only enter the economy small fractions of a bitcoin (increasingly minor) over the course of several years, but the curve that represents the increase of the monetary mass will continue approaching asymptotically to 21 million.

4 – Will it be enough, in the future, 21 million of bitcoins?

The scarcity of Bitcoins is never going to be a problem, because each bitcoin can divide to the eighth decimal – and potentially even more. That is to say that today you can pay someone the amount of 0.00000001 Bitcoin. We talked about a total monetary mass integrated by – at least – quadrillion of units, so a single bitcoin in circulation would suffice to supply enough monetary units to the entire planet. In the future, if necessary, the units in use could happen to be called microbitcoins, nanobitcoins, etc.

5 – is Bitcoin a pyramidal scheme?

A pyramidal scheme is based on unfulfilled promises. Bitcoin is not a company; Neither promises nor can promise: it is a protocol, a computer tool whose code can be freely examined by anyone, at any time.

6 – What's special about Bitcoin?

It's the only system that allows you to transfer any amount of wealth instantly, any person, from and to any place and at any time, without having to pay abusive fees, without having to worry about fraud or the debasement of the currency, without having to ask permission from anyone and without being obliged to identify you.

7 – What is the Bitcoin backup?

The Bitcoin endorsement is its monetary qualities, neither more nor less. What, perhaps, is the backing of the gold? ... its monetary qualities! Those who use Bitcoin do not have to rely on the promises of a government, but in the unchanging laws of mathematics.

8 – Does Bitcoin have intrinsic value?

Nothing possesses intrinsic value; The value is assigned to things by humans. It can be said that the qualities of gold are intrinsic to gold, or that the qualities of Bitcoin are intrinsic to this criptomoneda, but the value is not found in gold or Bitcoin: it is human beings who value these qualities.

9 – But the Bitcoins are intangible: Isn't that a disadvantage?

It's an advantage. Thanks to that quality (which the precious metals do not have), the bitcoins can cross the borders instantaneously, and it is possible to accede to them from any place. At the same time, Bitcoin allows to dodge the arbitrary restrictions on the transfer of value (unlike the digital money that moves through the channels of the traditional financial system).

10 – but Bitcoin is deflationary: Isn't that a disadvantage?

Unlike what happens with forced-course money, it is likely that the value of your bitcoins tends to increase in relation to the products you could buy with them. This is an excellent news for the productive population, and a terrible news for those who now control (or benefit from the control of) the monetary system. By preventing the discretionary devaluation of the currency, Bitcoin encourages long-term savings and investment while discouraging irrational consumption and unsustainable indebtedness.

11 – Is Bitcoin safe?

According to experts, a transfer between Bitcoin addresses is several times more secure than a transfer between bank accounts (not to mention the risk posed by the forced interference of third parties in the banking system). The Bitcoin code is open to the examination of all stakeholders, and its cryptographic architecture supports future updates to cope with potential attack vectors (if necessary decades in advance).

12-Is it true that Bitcoin has been hacked?

No. Hacking into databases of a bitcoins Exchange site is not a hack to Bitcoin. Asserting the opposite is tantamount to saying that a hacker to a bank's databases is a hack to the dollar.

13 – How can a monetary system that is used by anonymous subjects generate confidence?

Anonymity is not something that Bitcoin imposes; It's a choice Bitcoin admits. On the other hand, mutual trust is not always a requirement between the parties involved in a transaction. To prevent fraud, Bitcoin users have various reputation systems and escrow services (similar to those offered by EBay).

14 – Is Bitcoin the preferred currency of criminals?

Bitcoin can be used for illicit purposes, as well as the dollar, ruble, weight, etc. It is worth arguing that Bitcoin is more efficient than the dollar, the ruble, the weight, etc., and this is absolutely true, but we have not given up the plane – more efficient vehicle than the bicycle – or the phone – more efficient means of communication than the smoke signals – because they can be used for illicit purposes.

15-can Bitcoin be banned?

A government might try to ban the use of bitcoin, but controlling Bitcoin users is extremely difficult and extremely costly. To eliminate Bitcoin you have to start nothing less than to eliminate the Internet – although in the future Bitcoin could work even outside the Internet.

The prohibitions did not end with BitTorrent, Wikileaks, illegal drugs, with tax evasion, illegal immigration, work "in black", etc. etc. ... and will not end with Bitcoin.

16 – With the increasing difficulty of obtaining bitcoins through mining, will mining "at home" continue to be profitable?

Mining was almost never profitable for those who immediately liquidate the mined bitcoins: at first, for example, one could get hundreds of bitcoins on a day of mining, but there was no way to sell them for more than USD 0.0001 (or even that). Mining is only profitable for those who understand the basics of Bitcoin, and thus believe in the bright future of this technology. So it all depends on the miner's temporal horizon. If you have mined at the beginning of 2010 and have not yet sold the bitcoins obtained, you have made a formidable business.

17 – is the difficulty in obtaining Bitcoins through mining continually increasing?

No. The probability of acquiring bitcoins by means of mining depends on many factors, the main one of which is the computational power that the total of the miners contributes. The difficulty is automatically adjusted every ten days so that the increase of the monetary mass occurs according to the programmed rhythm. So the difficulty can be diminished, and it has done so in repeated opportunities (in general when the price falls, which discourages mining in the margin).

18 – If the use of Bitcoin were to grow exponentially, would miners have more and more work in exchange for ever less bitcoins?

The system is designed to make block generation occur more or less every ten minutes, regardless of how many transactions each block includes. More transactions, however, do not necessarily mean more work for the miner (in fact, it could even mean more bitcoins in the concept of fees). And although in the future they will generate less bitcoins, it should be taken into account that the same restriction of the increase in the monetary mass could condition an increase in the price of the bitcoin.

19 – Will mining end up in the hands of a monopoly?

The big difference between Bitcoins mining and the issuance of forced-course money by a central bank is that mining remains open to anyone who wants to get involved, i.e. it is not possible to monopolize it. No one can – and will never – have the bitcoins mining. It is true that it is an increasingly competitive market, but that is good news-it means that the network will be safe.

On the other hand, the incentive to undermine is directly proportional to the price of the bitcoin, so that an inefficient miner can benefit even if it fails to obtain many bitcoins. And it will never be lacking who can acquire a competitive advantage by simply accessing cheaper energy.

20 – Will mining end up being the privilege of a few billionaires?

Those investing in state-of-the-art mining farms have no guarantees (remember, it is not possible to monopolize Bitcoins's mining), and they are not lacking or lacking competition. The model of precious metals can help to understand this phenomenon: anyone can get involved in gold mining, for example, if it has certain knowledge and resources. Some miners will be more efficient than others; Some will make better decisions than others; Some will have better luck than others, etc. Companies that make precious metal mining there are thousands; Individuals or groups of isolated individuals there are many more. And this is true even though the precious metal mining business is distorted by state intervention. In the case of Bitcoin, the doors are wide open (and cannot be closed): If you want to get involved in mining, nobody's going to ask you for a license.

21 – is the technological career among the miners of bitcoins sustainable?

In fact, the "technological race" among the miners of bitcoins is the key to the sustainability of the whole system. Because Bitcoins's mining improves with every innovation in hardware and software, the network is secure.

22 – Who will protect the network when the system stops rewarding the miners with new bitcoins?

The transaction fees will be more important as the lower the Block prize. In the future, the miners will be motivated to maintain the nodes generators by the sum of payments in concept of rates that can accumulate, more than by the bitcoins that they are able to generate.

23 – After the last Bitcoin was generated, will Bitcoins's mining end?

No, since what the miners are looking for is not strictly bitcoins, they are a hash of the next block of transactions. The one who finds it stays with the prize in Bitcoins (while there is prize) plus the amount corresponding to the fees.

24 – Will Bitcoin be destroyed by monetary speculation?

In a free market, all speculators do is buy when few are buying and selling when few are selling. They want it or not, so they moderate the price fluctuations, and they carry liquidity to where they need it most. On the other hand, since the number of Bitcoins is limited, anyone who intends to buy hundreds of thousands of bitcoins will generate such an increase in price (largely by speculation from those who see the price rise and postpone sales of bitcoins) that probably ends without cash before you get to buy 10,000. Dumping, on the other hand, depress the price temporarily, thus helping to expand the market among more participants.

25 – Will the tangible currencies of Bitcoin be circulated in the same currency as other currencies?

The bitcoin banknotes and coins are thought of as collectibles, or to introduce in the Bitcoin world people who lack the minimum know-how – not to base on them the functioning of the Bitcoin economy. In addition, the manufacturer of these products may retain the private keys corresponding to the units sold, with the intention of using them in the future (although insured). Do you know him? Do you trust him? Do you trust your environment? The great advantage of Bitcoin is precisely that it does not depend on the ability or goodwill of the "issuer" of the currency, but of the unshakable laws of mathematics.

26-Will Bitcoin free us from the banks?

Not necessarily. But the problem of the current monetary system does not lie in the banks, but in the forced-course money imposed by the States – which makes possible, among other misfortunes, the fractional reserve system with the central bank as a guarantor of last resort. This system benefits banks at the expense of the productive population, but it can only work at gunpoint – and the gun does not have banks, but the state.

Banks function as state allies (the current regulatory framework leaves them no choice), but they are not the main culprits in the looming disaster.

27 – Will Bitcoin improve the economic situation of the less fortunate?

The coin does not produce wealth. Good currency is necessary for the resources to be adequately exploited, but the wealth is produced by individuals interacting freely and voluntarily. That said, it is true that, in a world of free currencies, the solutions to the different social problems would not be hampered so often by the arbitrariness and inefficiencies of the system that we have inherited.

28 – Will Bitcoin help to distribute wealth more fairly?

If the recession continues to deepen, the assets of the privileged by the current monetary and financial system can lose their value very quickly. Unfortunately for them, the Bitcoin design prevents the granting of privileges.

29 – Will Bitcoin help prevent wars?

Wars cannot be financed if it is not through violence and fraud. How many people would support a declaration of war on a distant country if it had to pay its share of the adventure directly from its pocket? The reality is that governments force us to finance their wars basically through indebtedness and inflation, and this is only possible thanks to the control of the monetary and financial system. Therefore, pacifists should be the first to embrace Bitcoin.

30 – Do we need more bitcoins in circulation to activate the economy?

The currency is a social institution that emerged spontaneously as a mechanism for facilitating exchanges, preserving economic value and providing an account unit (a measure of common value). The free currency (not monopolized by the States) can help allocate resources according to their productivity, and thus facilitate the creation of wealth, but one of the most important qualities of good currency is its relative scarcity. More money in circulation – no matter how it is distributed – will not solve the problem of economic stagnation and poverty. Indeed, the use of force to distribute wealth through the control of the monetary and financial system is the main cause of the recession and the ensuing economic hardships.

Win

Now let's talk about the mining.

The miner basically consists of looking for a group of new algorithms called Blocks.

Currently, finding a block of Bitcoins is back with 25 bitcoins.

By the time you I this post the bitcoin is worth 600 Us.

Generate

But what's the problem?

To find a new block, alone, you're going to take a long time but finding it.

The solution for that is the POOL URL

Works

How does it work?

It consists of a page where a large number of miners work together to find a block of bitcoins, and the profit is divided in equal parts according to the amount of shares that one bring to find that block.

A share is a minimum fraction of a bitcoins block.

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What do I need to mine bitcoins?

To be honest, my reason to create this post, is that I want to share the new ways to undermine bitcoins.

Well, before, when the level of difficulty in creating a Bitcoin was less people could use their own computer and so could earn a few cents

But using your own computer is not going to win anything, but the computer is quite powerful.

Then to make it profitable the miners created super computers using multiple graphics cards connected to a single computer.

For a long time that was profitable, until the level of difficulty increased a lot.

What happens is that, the measure used to measure the process of your computer, at the time that is sought bitcoins, is measured in M/hashes or MHS.

Most likely your personal computer has a process power of between 5 to 20 Mhs, which means nothing!

With that power of processo you will get 0.02 US per month, working 24 Hr/day. Which means you're going to waste time.

The Super computers that mention them, come to have up to 200 GHs, which means that with them on 24 hours, in one month, you will earn around 300 Us a month in bitcoins.

Bitcoins

And what's the problem?

Basically it is the size of these equipments, the cost of investment/profit and keep them 24 hours predido, with good connection to Internet and a good electrical connection.

Mining company

And what is the solution?

We go to the point, currently the machines based on graphics chips are not enough to make the investment profitable, build a cost you more or less $4,000, and give you $300 a month.

These machines, were not made to find bitcoins, so in recent times, some engineers have created a new structure to generate the bitcoins, doing everything much more practical, saving space, energy costs and increasing the power of calculating 2THS!

These machines are armed, when you have what you need in a good source of energy, an Internet connection with WIFI network and a computer.

Doing the basic calculations can be observed that a power of process of 2 THASH generate between 7000 to 8000 dollars in bitcoins.