Luckily for us, however, bitcoins seem to be going up in value and should maintain their value over time, unlike your mint condition Tiny the bitcoin mining profitability 2013 Chihuahua. But how do you get bitcoins? You can begin by buying them outright, but the market is currently wild.
188 per coin, the direction of the bitcoin is anyone’s guess right now and, unlike equities, these things don’t split. In short, you should probably mine. Think of it as work done by groups of people to find large prime numbers or trying keys to decrypt a file. As it stands, mining solo is very nearly deprecated.
The process of finding blocks is now so popular and the difficulty of finding a block so high that it could take over three years to generate any coins. While you could simply set a machine aside and have it run the algorithms endlessly, the energy cost and equipment deprecation will eventually cost more than the actual bitcoins are worth. Pooled mining, however, is far more lucrative. While this is simplified, it is basically how the system works.
You work for shares in a block and when complete you get a percentage of the block based on the number of workers alongside you, less fees. 50 over the weekend by running a dormant PC. The astute among you will note that I probably used twice that amount of electricity. Being a neophile, I’m surprised it took me so long to start mining.
My buddy Tom explained how to set up a pooled mining account so I thought it would be interesting to share the instructions. You can either store your wallet locally or store it online. You can download a local wallet here but make sure you keep a copy of your data backed up. This, without the period, is a direct way to send bitcoins to your wallet. Make a note of your address. In Coinbase, the wallet address found under linked accounts. To mine in a pool you have to work with a group of other miners on available blocks.