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Cryptocurrency mega-thread
This is a mega thread about crypto currency and how to mine it enjoy

About Bitcoins and Mining:
What are Bitcoins?

What is Bitcoin mining?

Video courtesy of
Before we begin...
Before you read further, please understand that most bitcoin users don't mine! Bitcoin mining is a business and very competitive one. Mining only makes sense if you plan to do it for fun and thus don't care if you make a profit, or if you can do it very efficiently and for a profit.

If you want to get Bitcoins based on a fixed amount of mining power, but you don't want to run the actual hardware yourself, you can purchase a mining contract .

Technical Background
During mining, your computer runs a cryptographic hashing function (two rounds of SHA256) on what is called a block header. For each new hash, the mining software will use a different number as the random element of the block header, this number is called the nonce. Depending on the nonce and what else is in the block the hashing function will yield a hash which looks like this:

You can look at this hash as a really long number. (It's a hexadecimal number, meaning the letters A-F are the digits 10-15.) Now to make mining difficult, there is what's called a difficulty target. To create a valid block your miner has to find a hash that is below the difficulty target. So if for example the difficulty target is 1000000000000000000000000000000000000000000000000000000000000000, any number that starts with a zero would be below the target, e.g.:

If we lower the target to 0100000000000000000000000000000000000000000000000000000000000000, we now need two zeros in the beginning to be under it:

Because the target is such an unwieldy number with tons of digits, people generally use a simpler number to express the current target. This number is called the mining difficulty. The mining difficulty expresses how much harder the current block is to generate compared to the first block. So a difficulty of 70000 means to generate the current block you have to do 70000 times more work than Satoshi had to do generating the first block. Though be fair though, back then mining was a lot slower and less optimized.

The difficulty changes every 2016 blocks. The network tries to change it such that 2016 blocks at the current global network processing power take about 14 days. That's why, when the network power rises, the difficulty rises as well.

Bitcoin Mining Hardware
CPU's: In the beginning, mining with a CPU was the only way to mine bitcoins. Mining this way via the original Satoshi client is how the bitcoin network started. This method is no longer viable now that the network difficulty level is so high. You might mine for years and years without earning a single coin.

GPU's: Soon it was discovered that high end graphics cards were much more efficient at bitcoin mining and the landscape changed. CPU bitcoin mining gave way to the GPU (Graphical Processing Unit). The massively parallel nature of some GPUs allowed for a 50x to 100x increase in bitcoin mining power while using far less power per unit of work. While any modern GPU can be used to mine, the AMD line of GPU architecture turned out to be far superior to the nVidia architecture for mining bitcoins and the ATI Radeon HD 5870 turned out to be the most cost effective choice at the time.

FPGA's: As with the CPU to GPU transition, the bitcoin mining world progressed up the technology food chain to the Field Programmable Gate Array. With the successful launch of the Butterfly Labs FPGA 'Single', the bitcoin mining hardware landscape gave way to specially manufactured hardware dedicated to mining bitcoins. While the FPGAs didn't enjoy a 50x - 100x increase in mining speed as was seen with the transition from CPUs to GPUs, they provided a benefit through power efficiency and ease of use. A typical 600 MH/s graphics card consumed upwards of 400w of power, whereas a typical FPGA mining device would provide a hashrate of 826 MH/s at 80w of power. That 5x improvement allowed the first large bitcoin mining farms to be constructed at an operational profit. The bitcoin mining industry was born.

ASIC's: The bitcoin mining world is now solidly in the Application Specific Integrated Circuit (ASIC) era. An ASIC is a chip designed specifically to do one thing and one thing only. Unlike FPGA's, an ASIC cannot be repurposed to perform other tasks. An ASIC designed to mine bitcoins can only mine bitcoins and will only ever mine bitcoins. The inflexibility of an ASIC is offset by the fact that it offers a 100x increase in hashing power while reducing power consumption compared to all the previous technologies. For example, a good bitcoin miner like the Monarch from Butterfly Labs provides 600 GH/s (1 Gigahash is 1000 Megahash. 1 GH/s = 1000 MH/s) while consuming 350w of power. Compared to the GPU era, this is an increase in hashrate and power savings of nearly 300x. (Calculate the earnings of any bitcoin mining hardware device using this bitcoin mining calculator).

Bitcoin mining hardware list: Mining hardware comparison

Unlike all the previous generations of hardware preceding ASIC, ASIC is the "end of the line" when it comes to disruptive technology. CPUs were replaced by GPUs which were in turn replaced by FPGAs which were replaced by ASICs. There is nothing to replace ASICs now or even in the immediate future. There will be stepwise refinement of the ASIC products and increases in efficiency, but nothing will offer the 50x - 100x increase in hashing power or 7x reduction in power usage that moves from previous technologies offered. This makes power consumption on an ASIC device the single most important factor of any ASIC product, as the expected useful lifetime of an ASIC mining device is longer than the entire history of bitcoin mining. It is conceivable that an ASIC device purchased today would still be mining in two years if the device is power efficient enough and the cost of electricity does not exceed it's output. Mining profitability is also dictated by the exchange rate, but under all circumstances the more power effecient the mining device, the more profitable it is.

There are two basic ways to mine: On your own or as part of a pool. Almost all miners choose to mine on a pool because it takes the luck out of the process. Before you join a pool, make sure you have a bitcoin wallet so you have a place to store your bitcoins. Next you need to join a mining pool like Eclipse, Eligius or BTC Guild. With pool mining, the profit from any block a member generates is divided up among the members of the pool. This gives the pool members a more frequent, steady payout (this is called reducing your variance), but your payout(s) will be less unless you use a zero fee pool like Eclipse. Solo mining will give you large, infrequent payouts and pooled mining will give you small, frequent payouts, but both add up to the same amount if you're using a zero fee pool.

Once you have your client set up or you have registered with a pool, the next step is to set up the actual mining software. The most popular GPU/FPGA/ASIC miner at the moment is BFGminer or CGminer. For a full GUI experience, try EasyMiner.
If you want a quick taste of mining without installing any software, try Bitcoin Plus, a browser-based CPU Bitcoin miner. As a CPU miner it's not cost-efficient for serious mining, but it does illustrate the principle of pooled mining very well.[/spoiler]
Basic Mining (Bitcoin):
Mining bitcoins – a process that helps manage bitcoin transactions as well as create new “wealth” – is the new Beanie Babies. 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 stuffed Chihuahua.

But how do you get bitcoins? You can begin by buying them outright, but the market is currently wild. At $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. But what is bitcoin mining?

Think of it as work done by groups of people to find large prime numbers or trying keys to decrypt a file. You can read a lot more about it here but just understand that for every block mined you get 25 coins or, at current rates, $4,722.25. Currently a single bitcoin is valued at $188, an alarming result that is probably caused by money movements related to Cyprus and a general bubble-like excitement over the platform in general. In fact, many wager that the DDOS attacks on many bitcoin-related services are direct action by hackers to inject instability in order to reduce the price.

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. Using a service like “Slush’s pool” (more on that later) you can split the work among a ground of people. Using this equation:

(25 BTC + block fees – 2% fee) * (shares found by user’s workers) / (total shares in current round)
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. Using this method, I have been able to raise about $1.50 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.

1. Get a wallet. You can either store your wallet locally or store it online. is an online wallet that is surprisingly simple to set up. Wallets require you to use or download a fairly large blockchain file – about 6GB – so downloading and updating a local wallet may be a non-starter. Like all wealth storage mediums, keeping your bitcoins “local” is probably a better idea than trusting a web service, but that’s a matter of private preference. There is no preferred wallet type and there are obvious trade-offs to both. Privacy advocates would probably say a local wallet is best.

You can download a local wallet here but make sure you keep a copy of your data backed up.

Once you’ve created a wallet, you get an address like this: 1BEkUGADFbrEShQb9Xr4pKPtM8jAyiNQsJ. 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.
[Image: screen-shot-2013-04-08-at-9-17-19-am.png?w=1024&h=411]
2. Join a pool. To mine in a pool you have to work with a group of other miners on available blocks. The most popular is Slush’s Pool found here. You can also try guilds like BTC Guild as well as a number of other options. Each of the pools is characterized mostly by the fees they charge per block – 2% for Slush’s pool, for example – and the number of users. Pools with fewer users could also have a slower discovery time but pools with many users usually result in smaller payments.

How can you be sure the pool owner doesn’t steal all your bitcoins? You can’t. However, as one pool owner, Slush, notes:

In theory, as the Bitcoin pool operator, I could keep the 25 BTC from a block found by the pool for myself. I’m not going to do this, but I completely accept that people do not trust the pool operator. It is their freedom of choice, and Bitcoin is about freedom.
For simplicity’s sake, I’m using Slush’s Pool and have created three workers. First, create a pool login. Then add workers. The workers are sub-accounts with their own passwords and are usually identified by [yourlogin].[workername]. I have three workers running, currently – one on my iMac and two on my old PC.
[Image: screen-shot-2013-04-08-at-3-05-25-pm.png?w=1024&h=728]
You must create workers to mine. The instructions are very straightforward for most services so don’t become overwhelmed. Like any online club, you can dig deeply into the subculture surround bitcoin as you gain experience. I like to think of it as a financial MMORPG.

Also be sure to enter your wallet address into the pool information. This will ensure you get your bitcoins.

3. Get a miner. There are a number of mining options for multiple platforms although OSX users may find themselves in a bit of a pickle. Miners use spare GPU cycles to power the mining operation, much like services like [email protected] uses spare cycles for finding intelligent life. Miners, on the other hand, use these cycles to help handle peer-to-peer processes associated with bitcoins. Thus by doing “work” you are maintaining the network as well.

GUIMiner is the simplest solution for Windows users as it allows you to create miners using almost all standard graphics cards. You can download it here. 50Miner is also a popular solution. Both require you to enter your worker info and pool and they’ll start mining.

Linux users can run miners like CGMiner. An excellent guide to installing a miner on Ubuntu is available here.

OS X users can use DiabloMiner, a two-year old command-line program that will mine using OpenCL. Sadly, it uses deprecated calls to Bitcoin and is quite a bit slower. As a result, you need to run your own proxy, Stratum, that allows Diablo to connect with services like Slush’s pool. Both of these programs usually run without issue on OS X although you may need to install OpenCL for OSX.

To mine I’ve created a script that I run in Terminal that simply runs the proxy in the background and then connects Diablo. Note the last two arguments are necessary for Mountain Lion.

./stratum-mining-proxy-master/ &
./ -u WORKERNAME -p WORKERPASSWORD -o localhost -r 8332 -w 64 -na
RPCMiner is far easier to run – you simply click an icon and enter some data – and both have very rudimentary, text-based interfaces. Running Diablo on my iMac has not had much effect on application performance under OS X although it does slow down my Windows 8 machine considerably.

4. Keep your mind on your money. Bitcoins are baffling in that they are wildly simple to use and mine. Speculators, then, would probably be able to throw hundreds of machines at the problem and gather bitcoins like raindrops, right? Wrong. As more bitcoins are found, they become more difficult to find. This profitability calculator will help you understand what you’re up against but understand that this isn’t a sure thing. I’ve run my systems for a weekend and seen a mere $1.50 – enough for a coke – but other users may have improved hardware and methods to succeed. In short, if it costs more to run your hardware than you gain in bitcoins, you’re probably doing something wrong.

Good luck in your journey and enjoy your first foray into this wild and wooly world.[/spoiler]
What is Dogecoin:
What is Dogecoin?

I read that one of these alternatives is called the “Dogecoin,” named after a dumb Internet meme. This is all a big joke, right?

Yes, Dogecoin is a joke. Though weirdly it’s a joke that, at least on paper, is worth millions of dollars. Because Bitcoin is an open-source project, anyone can take the source code, modify it, and then use the modified software to create their own Bitcoin-like network. The founders of Dogecoin took the source code of another Bitcoin variant called Litecoin, made some further tweaks, and rebranded it as “Dogecoin.” That’s a reference to the canine variant of lolcats, an Internet meme where a grammatically challenged dog makes excited statements. Dogecoin has been around for less than a month. In that time, the value of all dogecoins in existence has skyrockted from zero to more than $8 million. You can trade Dogecoin at Vircurex or Cryptsy.[/spoiler]
Basic Mining (Dogecoins):
Looking to get started mining but know nothing about DOGE? This is the place to turn. I know it seems like a lot of steps but trust me, you can do it and earn yourself many doge. Wow.

[First step] 0- Get yourself a wallet:

Your wallet is where you'll keep your Dogecoins. It's pretty easy to set up, head on over to and get the GUI wallet. Once you start the Wallet it'll need to take a few minutes to sync. Give it time, this could take anywhere between 5 and 30 minutes. If your wallet syncs, move on to step two!

If your Wallet never syncs there might be something wrong. Close the wallet and navigate to C:\Users[YOUR ACCOUNT]\AppData\Roaming\DogeCoin and create a new file called dogecoin.conf. In that file you'll want to put

Once saved, try again.

.25- Get an address:

Now that you have a wallet you'll need an address so people (or pools) can actually send you Dogecoins. This is easy to do from your wallet. On the top bar click "Much Receive" and then on the bottom of the wallet click "New Address." Give it a label and poof you're done.

This 32-character string is how your wallet becomes public. You'll use it for all transactions from here on out. Think of it as your deposit box.

.5- Get some mining software:

Now you're prepared to receive Dogecoin. Great! But now you need to actually mine it, which is a little harder and dependent upon your setup. What you decide to use to mine is dependent upon what hardware you're running. If you've got a fancy AMD, you can use CGminer, if you haver a NVidia, you can use CUDAminer. If not, CPU mining is fine too. Once you've made your choice you'll need to download the software itself. There's a nice .rar package another user has put together for Window users (dated Dec. 12, might be out of date by your time of reading) that you can download here.

Don't have any hardware? Take a look at scrypt mining hardware comparison. Choose a kH/s you can afford and calculate your profit using dustcoin. Purchase the necessary hardware and build a scrypt mining rig. Something like this is considered legit. A brief tutorial for cgminer would be: grabb any version before 3.8 like 3.7.2. Then go to your pool and make a new worker. Make a new file in the same directory as cgminer, call it something like wow_much_hashes.bat, and then use nano it to edit it. In the file put:

./cgminer --scrypt -o PoolUrl -u UserName.WorkerName -p Password -I 12
Save and close the file, then run it. Should be set. Take a look at these scrypt mining tips I found, and go through an absolute beginner's guide and join a pool if you're having trouble following this brief tutorial.

Alternatively, if you prefer Linux or you don't own any hardware you can rent out some from a VPS provider and follow these instructions:

1- Create a VPS account: then create a trial instance of 512 MB / 1 CPU with Ubuntu 13.04 (x64).

2- You will be emailed an IP address and password with instructions on how to SSH into your new instance. Setup putty then login via SSH with your VPS login credentials.

3- First thing to do once you're logged in is to change the root password into something you can remember:


4- Being logged in as the root user is not recommended for various reasons so we will create a non-privileged user, follow the prompts after issuing the command, only username and password are necessary, you may leave the other fields blank if you wish:

adduser <USERNAME>

5- Add the new user to the 'sudoers' file to be able to execute root privilege level commands as that user:

echo '<USERNAME> ALL=(ALL:ALL) ALL' >> /etc/sudoers

6- Change into the new user user:


7- Relocate into the home directory of the user you have changed into.


8-Create a swap file:

sudo dd if=/dev/zero of=/swapfile bs=64M count=16
sudo mkswap /swapfile
sudo swapon /swapfile

9- Update apt:

sudo apt-get update

10- Install git:

sudo apt-get install git build-essential autotools-dev libcurl4-gnutls-dev autoconf automake

11- Clone cpu miner:

git clone

12- Compile the source code:

cd cpuminer # changes to the cpuminer folder
./ # only needed if building from git repo (which we are)
CFLAGS="-O3 -Wall -msse2" ./configure

13- Install screen:

apt-get install screen


14- Join a pool:

You can technically start mining on your own but I don't recommend it. There's not a particularly good chance of you getting anything done any time soon and I'll explain why in a later section. So what you're going to do instead is join a collection of other miners called a "pool." There's lots of pools and fortunately we've got our own list of them. As you can see, different pools have different rules and features, some include fees on your earnings, some offer automatic payout when you reach a certain amount of dogecoin, some offer manual payout at your leisure, some have payout fees, etc... The differences are mostly negligible in all honesty, I'd recommend joining something that doesn't have too hefty a withdrawal fee and has plenty of other workers. The choice is truly yours!

Once you've picked your pool you'll want to actually get set up. Head to your pool's homepage and create an account. How you do that will vary, look for "sign up" or "registration." MPOS-design pools often have this on the left-side navigation.

If your pool's website asks for your wallet up-front you'll want to be sure to get that part right. Head back to your wallet and go to the "Much Receive" tab. Click on your address. On the bottom of the page click "Copy Address." Your address is now saved to your clipboard for convenient pasting into things like, say, an account registration page. If your pool's website does not ask for that part up-front you'll want to find where to enter this. It'll likely be under "Edit account" or similar.

Once you have your account you'll need to set up a "worker." On an MPOS-design pool, you'll navigate to "My Workers" on the left-side navigation to do so. Set up your worker with a name and password you can remember--you'll need this later!

15a- Change your ./minerd (Linux):

./minerd --url stratum+tcp://server:port --userpass
In order to keep your sessions alive, use the command 'screen' before running './minerd'.

When logging back again to restore your session use 'screen -r'.

You can specify a particular number of processor cores to use with the '-t N' option where N is the number of cores you wish to dedicate, this may be useful if using your home computer to mine. Leaving out the '-t' option uses all available cores by default.

15b- Set up your batch file (Windows):

Starting your miner requires some configuration details that you don't want to have to remember. For this reason we're going to set up a batch file that launches your miner for you. In the same folder as your mining software make a .bat file. Edit this file with notepad (or similar) and input the command-line command that runs your miner of choice. This should be documented on your miner program's release page but I'll go ahead and post a few examples below:

Mining with CUDAminer and NVidia GPU

cudaminer.exe -o stratum+tcp://[your pool's domain]:[your pool's port] -O [your username].[your worker's name]:[your worker's password]
Mining with CGminer and AMD GPU

cgminer.exe --scrypt -o stratum+tcp://[your pool's domain]:[your pool's port] -u [your username].[your worker's name] -p [your worker's password]
Mining with Minderd and CPU

minerd -a scrypt -t 4 -s 6 -o stratum+tcp://[your pool's domain]:[your pool's port] -O [your username].[your worker's name]:[your worker's password]

[Last step] 16- Start mining:

Launch your .bat file as an Administrator of your computer. If this works, great! Some users will have trouble running these batch files; if you're one of them head to your Control Panel and enter "UAC" into the search bar. Turn this feature off. Scripts are our friends right about now!

At this point if your tool of choice spits out any output you'll probably see some initialization text, maybe some syncing, or maybe "stratum from pool 0 detected new block". That's fine, this is all normal. Let your miner do its thing and enjoy the doge that it brings you! Head to your pool's website to track your worker's progress if you like.

Congrats, you're finished!

So where are my Dogecoins?

Dogecoins are only paid out after each block is found. Each block is worth a random number up to one million Dogecoins. Your pool will automatically take those Dogecoins and pass them out to each member of the pool based on the number of shares they earned. Shares are earned by contributing to the pool. If you contribute lots of computing power to the pool, you'll get a lot of shares; if you contribute only a little computing power to the pool, you'll only get a few shares. This keeps everything fair--those who do more will get more. You can track the computing power you're contributing by tracking your hashrate. The pool's hashrate is usually tracked too, it's a good metric of everyone's work combined to find the next block. The higher the pool hashrate, the quicker you'll find that block, and the quicker everyone will get paid.

Blocks get more and more difficult to find. It's good to get started early! Your pool likely tracks this estimated difficulty. Do note that the difficulty isn't a perfect tell of how long it'll take to find the block. Mining is very random: sometimes you'll find a block right off the bat with only 5% of the estimated shares distributed and sometimes you'll spend ages mining a block with 500% of the estimated shares distributed. That's part of the fun! Think of mining as playing the lottery as a group where we all play and all agree to share the money if one of us wins. Tadaa!

Your pool will likely take a bit to verify the block after it has been found. Be patient! Give your pool some time before you try to cash out. Once you do, though, be sure to spread the joy of Dogecoin! Consider registering with the /r/dogecoin tipbot or setting up a faucet should you ever really strike it rich.[/spoiler]
NVidea Advanced Mining Guide(Dogecoins):
TL;DR guide
Install MSI Afterburner
Turn off auto fan speed by clicking the auto button. Adjust fan speed to maximum. Click Apply. such fan! MSI Afterburner settings
Edit .bat to cudaminer.exe -H 1 -i 0 -l auto -C 1 -o stratum+tcp://poolurl:port -O username.workername:workerpassword
Run .bat and wait for cudaminer output
Replace .bat with the detected configuration = cudaminer.exe -H 1 -i 0 -l F15x16 -C 1 -o stratum+tcp://
I dont have a .bat file
Make one in the same directory as cudaminer.exe
What does the -l flag mean?
The flag comprises of 3 components. prefix blocks x warps
Available kernel prefixes are:
L - Legacy cards (compute 1.x)
F - Fermi (GTX 4 and 5 series) cards (Compute 2.x)
K - Kepler (GTX 6 and 7 series) cards (Compute 3.0)
T - Titan and GK208 based cards (Compute 3.5)
Wiki table of supported GPUs and compute level
blocks and warps
Flags given to the kernel to tell it the configuration of threads to run.
I want to change the blocks and warps. How to?
Firstly, take the blocks and warps that autoconfig gave you and multiply those numbers together. In my case, it is 15x16=240. You can fiddle with the blocks and warps but make sure to never go above that product. Otherwise you end up with your GPU crashing and bad shit happens
Configurations I tried were things like 30x8, 60x4 and found that 30x8 gave me the highest stable hash rate.
My cudaminer just crashes after startup
Update your drivers!!
There's no real answer to this problem, try lowering the blocks and warps values until it is stable
Also, make sure you are not passing cgminer.exe arguments to cudaminer.exe. They are two separate programs with different flags. If your .bat file has --thread-concurrency in it then you have just blindly copy pasted incorrect arguments.
Alternatively, add 'pause' (no quotes) on a new line at the end of the .bat file and post the output here for troubleshooting
I get a really low hash rate with 2 GPUs
Try disabling SLI. You can also add the -d 0 or -d 1 flag to the .bat file to align the process to device 0 or device 1 then make two .bat files for each GPU.
Can't I just set the -i flag to change intensity?
No, that is a cgminer flag. The -i flag is interactive mode and only has 0 and 1. -i 0 makes your desktop less responsive but gives maximum hash rate. -i 1 makes your desktop more responsive for ~10% less hash rate
How do I lower my intensity my GPU can't handle the doge?
Run cudaminer with the -l auto flag to find out your optimal maximum
Take the blocks and/or warps number and reduce it. I found that reducing F15x16 to F8x8 would give me about 40% of my maximum hashrate, and reduce my GPU Temperature from 80C to 65C with the same fixed fan speed
What is -H 1?
Gets your CPU to help out a little bit for an extra 5% hashrate
What hashrate should I be getting?[/spoiler]
What is Litecoin?
You may be wondering whether there were ever any mainstream users in the first place. But Charlie Lee, a former Googler and MIT grad, recognized such an audience did exist. In 2011, two years after the birth of Bitcoin, the former Googler and MIT grad decided to create a version of Bitcoin that would make it more accessible.

He called it Litecoin.

“I think Satoshi [Nakamoto, Bitcoin's pseudonymous creator] is great, and Bitcoin is awesome,” Lee said in a recent interview with BI. “I didn’t fix Bitcoin. I just made small changes that made [Litecoin] a little bit better.”

Litecoin is not the only digital currency to have mounted Bitcoin’s virtual coattails. Coinmarketcap lists about two-dozen ones who’ve seen their prices increase in the past few months. But Litecoin appears to be the first among these secondary equals, something reflected in its $670 million market cap — nearly 8x greater than the next largest currency, Peercoin.

If you’re at all familiar with Litecoin, you’ve probably heard it described, by Lee or others, as “silver to Bitcoin’s gold.” But if you don’t believe Bitcoin is worth much in the first place, that may mean nothing to you. So we asked Lee to elaborate, and he made a convincing case for where Litecoin will fit into the for-now expanding realm of digital currency.

“It’s more abundant, and more lightweight” than Bitcoin, he says.

Here’s what that means. Only 21 million Bitcoin will ever get created, and it’s projected that won’t occur until 2040. Although in theory this has no practical effect on its value if the Bitcoin economy truly takes off thanks to demand remaining consistent, that fixed amount will help keep prices elevated.

Lee designed Litecoin so that 84 million units would be created. And if the Litecoin economy scales up to where Bitcoin evangelists insist Bitcoin should be, the same pseudo-scarcity effect could someday be seen in Litecoin prices.

In addition, Litecoin is not subject to the “arms race” currently seen among Bitcoin miners looking to corner the market on acquiring large amounts of Bitcoin. Bitcoin is built around hash cryptography that is supposed to get more complex — and thus require more expensive computing power to mine — as the Bitcoin economy expands and grows in value. But this has allowed individuals with more efficient computer chips — in other words, ones that require less electricity power to mine a given amount of Bitcoin — to get the jump on more conventional miners. Litecoin eliminates that advantage by using an entirely different cryptography program, called Scrypt, where the limiting factor is memory, not processing efficiency. That means you’d have to buy a greater quantity of computer hardware to beat the program, not just design a better chip.[/spoiler]
Litecoin Mining:
Here's a video if you prefer it:
Mining litecoins is basically the same as mining dogecoins, just different pools.
Check the tutorial above if you want to mine these, but i would not prefer doing it, as the difficulty is so high nowadays.[/spoiler]

Nice! You should add liteCoin!

Best regards,
Knowledge talks, wisdom listens.
PM me with any questions or comments
Done Tongue Litecoin mining aint good aswell as bitcoin, because of the high difficulty.
You would need very top-notch software to actually make profit out of it.
Great post! Tried BTC Mining but my GPU sucks :crying:
[Image: 2mwp4dd.jpg]
(03-16-2014, 09:53 PM)Tumppi⁴²⁰ Wrote: Done Tongue Litecoin mining aint good aswell as bitcoin, because of the high difficulty.
You would need very top-notch software to actually make profit out of it.

Cool! Yea, liteCoin is an odd ball :tounge:

Best regards,
Knowledge talks, wisdom listens.
PM me with any questions or comments
XDG (Dogecoin) or Protoshares (PTS) ia actually most effective to mine on a CPU at the moment, at least imho.
Do NOT PM me for any inquiries related to advertising on PacketPunks. 

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(03-17-2014, 05:48 AM)Schultz Wrote: XDG (Dogecoin) or Protoshares (PTS) ia actually most effective to mine on a CPU at the moment, at least imho.

Ooo, nice to know :tounge:

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Not worth mining for BTC... it's to hard and it takes a LOT OF fking time, so that's a big NO for me.
But the thread is full of useful info.
[Image: 0sPWRRx.gif]
Yep, BTC/LTC difficulty is sky high nowadays..
This is a huge thread. I hope you didn't copy it from another forums!

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