I have been watching some Youtube videos about mining and it appears that it takes more than one computer to do enough volume to actually see any noticeable gain. I saw one guy had 24 computers which allowed him to run at 48Gh (Not sure what that means but speed of your setup determines how many bitcoins you mine). The 48Gh equates to 15.71 Bitcoins a day. (Roughly 3.05Gh per bitcoin) Earlier in the thread someone said that a bitcoin is worth $17 so that means this guy brings in about $267 a day. I am not sure what his expenses would be...... I assume just maintenance and electricity.

What I don't understand is if there is a predetermined amount of bitcoins mined (I think the ratio discussed earlier was 25 Bitcoins every 10 minutes and in 4 years that will split) how does the speed of the computer determine how many bitcoins you mine. Wouldn't that depend on your computers speed vs. the speed of other miners computers. Is it not essentially a race to solve a problem? Who ever solves the equation gets the bitcoin... Right? So the guy with the fastest computer should win every time.... I'm confused

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Posted by WikiTiger

Member since Sep 2007

41055 posts

Posted on 1/24/13 at 9:34 am to TheDirty1

quote:
What I don't understand is if there is a predetermined amount of bitcoins mined (I think the ratio discussed earlier was 25 Bitcoins every 10 minutes and in 4 years that will split) how does the speed of the computer determine how many bitcoins you mine. Wouldn't that depend on your computers speed vs. the speed of other miners computers. Is it not essentially a race to solve a problem? Who ever solves the equation gets the bitcoin... Right? So the guy with the fastest computer should win every time.... I'm confused

There is some truth to this, which is why people invest in some serious hardware for their mining. However, mining relies on luck as well, which is also a reason many people prefer to mine in "pools" because it increases the chance that you will get a reward.

In other words: solo mining = high reward, but no guarantee that you'll actually get them

pooled mining = lower rewards, but a much higher chance that someone in your pool will have luck

I know it's all confusing. Here's an article that I hope explains it better than I can: Bitcoin mining in plain english

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