The United States Commodity Future Trading Commission Department (CFTC) has announced in the late months of 2013, that BitCoins are now a new financial commodity. However, BitCoins was designed as a new payment system that was invented by Satoshi Nakamoto. Mr. Satoshi had actually published his invention in 2008, and then moved forward onto releasing the open-source free download software in 2009. The Bitcoin system is actually a simple Peer-to-Peer system in which allows users to perform and carry out financial transactions, without the hassle of any intermediary.
Several people already know that a BitCoin is something that you can now use for financial purposes (Buying property, products, etc.), but little is actually known on how to generate a BitCoin, by the public. The reason why BitCoins are a major success, is the form in which a single BitCoin is made. Unlike traditional financial commodities, the government doesn’t make any of the BitCoins. In fact, regular people, just like you and I are the main contributors.
The breakdown of how to mine a single BitCoin is too complicated to explain in quick terms, however, the outline is rather simple.
The first thing you would need whenever you start mining your own BitCoins, is a location that isn’t occupied much. A perfect example would be something like your garage, basement or attic. You will also need to have power going to the designated location.
Now there are several ways in which you can mine for BitCoins: the most expensive (most promising) solution, and the cheapest (least promising) solution. When trying to start up a BitCoin mining station, consider thinking about Stock Trading. The more you invest, the higher your yield will be.
Unless you happen to have several thousand dollars in which you can spend on the hardware, the cheapest startup solution is this:
The first thing you will need is a cheap laptop, or even desktop. This will host the mining software applications and connect the mining hardware. Next, I recommend obtaining a multi-USB port (you can get those at Wal-Mart, Best Buy, Fry’s, etc.). Now, you can purchase BitCoin mining USB Drives (Seen above). If you have 10 USB ports you can use, I recommend getting 10 BitCoin Mining USB drives. This will maximize your “cheap” investment. Each BitCoin Mining Thumb drive ranges from $35 used, to $73 new.
The setup I recommend is:
*1 Asus Laptop (Purchase here) $140
*1 Multi-Pot USB Hub (Purchase here) $30
*7 BitCoin USB Mining Hardware (Purchase here) $33 x 7 = $231
Grand Total = $401 (Excluding Taxes & Shipping)
Now that you have your hardware, connecting it all together is rather easy. Once you’ve started up your laptop in your designated location, plug in the multi-port USB hub to the laptop, and the place each of the BitCoin USB Mining in each slot on the USB Hub. Once done, you’re ready to download the software to start mining.
I have downloaded the software known as “EasyMiner”, and you can download your copy here.
Once you have the EasyMiner downloaded, unzip the file by right clicking and selecting Extract. Once the file is extracted, simply open the new extracted folder and double click on “Easy Miner.” Allow the program to open up, and it should automatically detect any mining hardware that is attached to your computer.
Once the software has found your mining hardware, simply click on “Start Mining” on the right hand side.
Now, while that setup is going on, go ahead and head on over to BlockChain.Info and create your free BitCoin wallet. Once you have created a BitCoin Wallet, you can wait a couple of days/weeks/months and then send your generated BitCoins to your wallet.
So now you have your Setup running full speed, and have created your wallet. Now what? Simple. Let the mining keep going. I recommend leaving your setup alone for a good solid week non-stop. But remember, the longer you wait the more you have.
1 month later…
Now you have been mining for 1 month, and have 3 BitCoins. Awesome! But what do you do?
Once you have your bitcoins mined, transfer them onto your BitCoin Wallet. From inside there, you can sell your BitCoins and collect the Cash. Deposit your earnings into your real bank account and keep on going. It’s a simple, never ending cycle to earn an unlimited amount of legal money. While the mining is occuring, look into obtaining mining hardware that’s more powerful. Save the bitcoins you are mining for the ultimate ‘setup’ purchase.
However, be careful. The more powerful the mining hardware is, the more electricity it will pull. Getting a $1,000 a month electricity bill, just because of your mining operation isn’t exactly acceptable if the BitCoins won’t cover costs.
The other solution to start mining your own BitCoins – without worrying about your own electricity bill and parts/hardware – is to land a small contract, or lease a BitCoin mining operating server farm. You can find those on ebay, Amazon and other online retailers.
This article (BitCoins: A Simple Mining Startup) is a free and open source. You have permission to republish this article under a Creative Commons license with attribution to the author and AnonHQ.com.