BitCoin Mining Rigs?

Discussion in 'Video Cards & Monitors' started by pinkfloydeffect, Oct 2, 2013.

  1. pinkfloydeffect

    pinkfloydeffect Member

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    Have any of you built BitCoin mining rigs? I am thinking about it, they only require high end GPUs with low end hardware.

    In 09' coins were worth change and by 11' they were worth almost $20 each! Now in 2013 they are worth over $100 each! Anyone who had a few towers with multiple GPUs in each mining 24/7 are filthy rich now with BitCoins which if you know where to spend them can buy almost anything!

    I see this as an extremely profitable use of a simple tower running 24/7 the way the future is headed, I can buy gold with some of the BitCoin profit.

    Anyone?
     
  2. Chilith

    Chilith Member

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    pinkfloydeffect

    pinkfloydeffect Member

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    Seems like the route to go now is these USB ASIC devices for about $20 each and expand from there rather then buying graphics cards.
     
  4. Chilith

    Chilith Member

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    The cheapest is closer to 200

    But give the threads in the section i linked a read. You need a certain Gh/wattage to actually break even, and the cheaper ones might not hit that.
     
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    pinkfloydeffect

    pinkfloydeffect Member

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    I will, some of them are so long there is no diving. The $20 miners are 333MH/s
     
  6. Pianist

    Pianist Member

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    I'm a bit of a noob with this bitcoin stuff. But once u 'find' a bitcoin how does it end up as some food on your table? Don't mean to sound condescending but the whole 'mining' concept just seems like just solving random mathematical problems which are hard for hards sake. I wish the owners of bitcoin maybe at least made the calculations do some folding or bionic etc (something with scientific purpose)...
     
  7. tre75

    tre75 Member

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    Having mined both bitcoin, litecoin and ftc, for bitcoin it is all ASIC now and unless you are going to be mining in the hundred thousand MH/s range then you have missed the boat, investing in it is a waste imho - so no gpu mining for that one.

    Litecoin is where most gpu miners have migrated too.

    Here are some links that may give you a guide of what's hot, and what's not.
    https://en.bitcoin.it/wiki/Mining_hardware_comparison
    http://dustcoin.com/mining
    https://litecoin.info/Mining_Hardware_Comparison

    Also don't forget about the new Sapphire Islands ati chips coming in Q4, currently the 7970 is the best price/performance king for gpu mining - 7990 trumps it but it does have a hefty price tag.

    HTH
     
  8. whitewolfx

    whitewolfx Member

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    Ok, so to be a bit more specific, here is the info the OP needs:

    Current big coins are Bitcoin and Litecoin. Exchange can be located at www.btc-e.com (thats right, there is an exchange for coins).

    To mine Bitcoins, which use SHA-256 encryption, you require ASIC's which are made by a few companys out there like butterfly labs. These ASIC's are specifically designed to mine bitcoin and therefore can do it much more efficiently in comparison to GPU's. This makes GPU mining for Bitcoins completely pointless.

    To mine Litecoins, which uses Scrypt encryption as opposed to SHA-256, there are no ASIC's currently available. Meaning the only way to attain Litecoins is via GPU's. You can set up GPU farms by having multiple GPU's attached to a single simple motherboard that has a low powered CPU and minimal ram and set the GPU's to mine constantly. This does consume a lot of power in Australia however and the immediate payout means it's not really worth it, and it would take far too long to achieve a return on investment at current market rates.

    What you're banking on if you're a litecoin miner, is that prices go up over time for litecoins. So the idea is you mine litecoins now, keep them around, then in 1-3 yrs time, the prices skyrocket like they did with bitcoin, and you have yourself an interesting little fortune. If you set up a litecoin farm and expect to be able to sell them immediately for profit, you'll find yourself making very little profit unless you have a GPU farm of over 20-30 GPU's, in which case, you'll be seeing a little bit of profit every month.

    Life lesson: if you want to farm, think of it as a longterm investment.
     
  9. HeXa

    HeXa Member

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    FTFY :thumbup:
     
  10. whitewolfx

    whitewolfx Member

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    lol, ty for that HeXa.

    I think it would also be important to note that it's smart to avoid all of the copycoins out there, as in, just completely avoid them unless you're looking to quickly mine them when they're new and then quickly dump them for btc/ltc. Pretty much all of the copycoins out there are more or less useless and won't be worth anything ever.

    I tried looking for the old bitcoin/altcoin comparison site i used to use but i can't remember what the address was, dustcoin is ok, but there are other more comprehensive ones out there that cover a lot of different coins. There was one that i used to use which had an estimated current hashrate for each coin, and it really shows you how far ahead coins like LTC and BTC are ahead of the other altcoins. FTC is doing pretty good too and might be worth while putting some hashes into, but LTC is definitely more stable.
     
  11. Tommo_Aus

    Tommo_Aus Member

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    pinkfloydeffect

    pinkfloydeffect Member

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    Thanks for all the links, and whitewolfx...wow thank you so much I wish this site allowed rep. I still see this worth the trickle of a potential future payout, I am on my computer 8hrs a day mostly browsing. Just an AMD 64 X2 3.2Ghz with 4gb ram and a 512mb ATI card running both my 24" monitors so I would need another GPU but still possibly worth the trickle.

    As far as future rise and looking at it that way rather than any payout...would you recommend picking at Bitcoins or Litecoins? I guess I would not expect any physical trade-out right now but like you said sitting on any number is a potential, I guess LiteCoin could have the bigger future potential if hardware was developed to deflate it since we are currently behind that barrier like we were with BitCoins? With this in mind I'm sure people with BitCoins have invested in some LiteCoins (exchanged) since you need more electricity to yield LiteCoins without any ASIC devices out yet.

    My buddie said most the work now is more efficient to work in a combined group and split the payout rather then an individual payout? (GPU pool)

    Never heard of copycoins but holy crap these links display so many coin types this is discouraging, I see a future in a successor possibly even when the USD collapses.

    These rigs are most certainly power hungry :( what about bandwidth??
     
    Last edited: Oct 3, 2013
  13. whitewolfx

    whitewolfx Member

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    I'm overly happy that ocau doesn't have a rep feature, would hate ocau to turn into reddit =p.

    In terms of what i would personally choose to stock up on... couldn't really say, anything that i would say would be pure speculation and you could get 100 different opinions from 100 different people. On that note, my bet would be with Litecoins. If Litecoins really do turn out being the silver to Bitcoins gold as it was intended, then Litecoins will eventually even out to 1/4 the price of Bitcoins (due to the natural limiation of bitcoins and litecoins). Currently the amount of Litecoins you can get per Bitcoin is about 57 (via btc-e.com), my theory is that in the future, you'll be able to get 1 Bitcoin for 4 Litecoins, meaning the value of Litecoins is going to pretty much skyrocket in the next few years.

    Good old Tommo linked the site i was trying to think of earlier (www.coinchoose.com) which shows pretty much every coin out there, with its estimated (pretty accurate) network hash rate (global hash rate). With coinchoose, you can clearly see which coins are popular and taking off, and it's immediately clear that coins like Bitcoin and Litecoin are miles ahead of any other coin. FYI, it's important to note the difference between SHA-256 and Scrypt encryption in terms of hash rates, the example is pretty simple, with a 7950 ATI card, you'll be able to get roughly 600khash per second on Scrypt algorithms whereas on SHA-256, you'll get roughly 600mhash. So keep in mind SHA-256 will always seem higher, but it's all relative.

    On the note of resources, i would highly recommend visiting the http://forums.overclockers.com.au/showthread.php?t=1078935 side of OCAU (in the distributed computing section, it's the LTC thread). Some good convo going on there regarding Bitcoins/Litecoins/Altcoins. Would also very highly recommend visiting www.bitcointalk.org (central location for anything *coin related on the internet). Do note that bitcointalk is down at the moment but should be up shortly, it kinda got hacked yesterday.

    In terms of pooled mining, it's definitely the only way to mine in this day and age, unless you have 3phase power coming to your house with multiple rooms full of GPU farms (highly unlikely). The pool i've enjoyed and used in the past is http://give-me-coins.com/ which has been great for LTC mining as it's a rather large pool so the payouts are rather frequent. I do believe Tommo or someone else runs a pool on the OCAU Litecoin thread i linked above, always good to mine with fellow OCAU'ers if you want to give that a go.

    In terms of other altcoins and being discouraged by them, don't be. Keep an eye on coinchoose and you'll be able to see just how popular those altcoins are, and how pointless they are on that same note. A vast majority of those altcoins are pretty much created by random people on the altcoin forums of bitcointalk and a vast majority of that vast majority have had literally no innovation or additional features implemented into their coin aside from changing a few core values of the coin and then releasing it to the public. Most importantly, they were not developed by teams that have any interest in furthering or supporting the bitcoin movement in any way, shape or form. They're more or less made by people who want to mine them quickly when released and then after gaining a little bit of popularity, sell them off to people who see it as a potential investment, and make a butt tonne of litecoins/bitcoins by trading them in the release period of 1-2 weeks or so. Then afterwards they completely flop and people give up on them, and they become worthless.
     
  14. Tommo_Aus

    Tommo_Aus Member

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    Some coins can be solo mined but in general you'll need a big farm to make it worthwhile, mining at a pool gives you far more consistent payouts as you have the hashing power of many users working together, rewards are distributed amongst the users. It also takes the headaches out of dealing with coin issues, there always seems to be something going wrong. A coin being attacked, some programming fault requiring a wallet update, yada yada.

    Good summary by whitewolfx, there are so many alt coins out there, one after another think its a good idea to start a new coin. Sometimes they don't go any further than changing the name of an existing coin! The best strategy at the moment is to mine the more profitable alt coins (sometimes they can be several times more profitable than mining BTC or LTC) then convert them to something more stable straight away. Either hold them as BTC or LTC.

    Future value is all speculation, but I'd agree LTC probably has the best chance of a large increase. BTC has already skyrocketed but who knows what will happen with all of the ASIC's moving in. All of the alt coins have fairly little traction as someone starts it then gets bored after a couple of months and moves on, so many are exactly the same with some online betting games and a marketplace selling stuff you'd never buy.

    LTC, like BTC, is actually accepted as payment in various places so it has a real chance of being an alternative currency. The coins are in circulation rather than being mined, dumped and never used again.

    Something I've been thinking for a while Pianist, about the only useful coin I've seen is XPM which calculates prime numbers. Its broken a number of prime number world records. What I'd really like to see is something like a Proteincoin or SETIcoin which somehow integrates Folding@Home or SETI@Home calculations. It'd give the projects a huge boost and mean the coin generation calculations do something more than minting new coins.

    So much processing power and energy is going towards mining that could do so much more if the coin devs put some thought into their coins rather than copying someone else for the sake of it. All it takes is one programmer to engineer and support a new and innovative coin. If you look at the current LTC hash rate alone it'd take ~50 000 ATI 7950 cards to achieve this, how many GPU's would be folding right now? (I don't know how to work this out)

    Before getting into GPU mining I'd check your electricity rates, if you want you can let us know what you're paying per kwh and we'll let you know what chances you have of making a profit.
     
  15. OP
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    pinkfloydeffect

    pinkfloydeffect Member

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    Good outlook; with the possibility of the value of LiteCoins going up.

    Are you saying Scrypt is more secure therefor takes longer?

    Sounds like I will be trying group mining then over solo-mining.

    These alt coins sound like mini-currency circles, just like how my great grandfather used to get paid in currency by the factory that could only be spent at the factory "store"

    How trusty are the joined payout groups that you will actually be paid equally or even at all for that matter?

    I will have to look into these alt coins as just another way to earn LTE or BTE.

    One thing that comes to mind about the race/competition between coins is if you believe in it...the "elite" watching this allowing them to battle between each other to choose the winning global electronic coin currency. One world government, one world currency.

    As far as power rates go, I pay between $7.25-$7.50 USD per kWh I think....and if not it can't be any higher than $9 USD per kWh.
     
  16. Euphoreia

    Euphoreia Member

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    I think you should check again :p

    I pay 29c/kWh at home, and 20c/ at my shop.
     
  17. OP
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    pinkfloydeffect

    pinkfloydeffect Member

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    I live in the United States, you probably live in Australia.
     
  18. Mathuisella

    Mathuisella Member

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    so, you're saying that it costs $7 USD per hour to run a 1000 Watt light globe in your house ?

    jesus christ, i would be investing in solar panels ASAP if that was the case...

    with panels being almost $1 per watt ( give or take depending on type of panel and size ect) you could get away with a 1kW system for $1500 and you would pay it off in less than 6 months

    hell, even install a 5kW system and supply your next door neighbour for $2.50/kWh

    but make sure you invest in Nickel-Iron batteries as they are light years better than anything else ever invented in terms of battery performance and reliability and ability to take punishment :)
     
  19. HeXa

    HeXa Member

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    pinkfloydeffect

    pinkfloydeffect Member

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