Can you just keep your system on and earn money? Yes you can with Bitcoin. Bitcoin is a Digital currency created in 2009, according to Wikipedia. One Bitcoin is equal to about 7 Dollars at the time of writing this blog. And only a latest computer is required to generate this digital currency, in other words, revenue...Is this really true? Is this a new way to earn money while at home in Pakistan? Can money be earned just by keeping your computer on while in Pakistan?
Yes, the process is called mining. You install a program downloaded from a bitcoin website, make a free account and just keep that software running and it will generate bitcoins, which have a value of $7 Dollars per bitcoin. But is it that simple?
Just a fast latest computer hardware with enough speed in terms of Mhash/sec. Either CPU or GPU can be used.
What is the problem with keeping computers on all the time?
Computers use electricity and produce heat. In country like Pakistan where there is energy crisis, will it be suitable. Also running a computer all the time at high usage level can break it.
Example 1:
Lets say you have core i3 CPU. From this website: Mining hardware speeds, it can produce about 9 Mhash/sec. If you keep it running without stopping for 1 month with bitcoin software running, than it will generate ฿1.13 bitcoins which are equivalent to $7.86 US Dollars.
Example 2:
Similarly if you use GPU instead of CPU and have Nvidia 9800GT than its like this. Nvidia 9800GT can generate 30 Mhash/sec and if this system runs for one month with bitcoin software working than the bitcoins generated are ฿3.76 or $26.19 US Dollars.
The Catch?
When you run a computer for one month than it uses electricity. Lets see what is the electricity consumption for above two examples:
Example 1: Core i3 CPU:
So instead of earning you are actually losing and also this does not include air conditioning costs or even hardware breaks which may occur because of high usage of system along with other things.
Example 2: Nvidia 9800GT:
So you earn roughly 16000 per 405 days that is about 1 year and it does not include air conditioning expenses or hardware breaks that might occur with such high usage along with other things
The most higher speeds are from a GPU like ATI 5970: 550 Mhash/sec and it is even recommended GPU by bitcoin, anyway:
Lets see:
UPDATED ARTICLE is here: Bitcoin mining in Pakistan: updated 2013
Is it true?
Yes, the process is called mining. You install a program downloaded from a bitcoin website, make a free account and just keep that software running and it will generate bitcoins, which have a value of $7 Dollars per bitcoin. But is it that simple?
The concept of mining:
You keep your computer on all the time and a calculation will be done on your compute and when it gets solved you are paid bitcoins. The calculation is in the form of blocks, solving one block will yield 50 bitcoins. But the time it takes to solve one block depends on speed of your system.
What you need to generate bitcoins?
Just a fast latest computer hardware with enough speed in terms of Mhash/sec. Either CPU or GPU can be used.
Mining Bitcoins in Pakistan:
The idea is very attractive, just keep our systems on and you will earn money while at home or at your office or anywhere even on your cellphones etc.What is the problem with keeping computers on all the time?
Examples to understand Bitcoin mining:
Example 1:Lets say you have core i3 CPU. From this website: Mining hardware speeds, it can produce about 9 Mhash/sec. If you keep it running without stopping for 1 month with bitcoin software running, than it will generate ฿1.13 bitcoins which are equivalent to $7.86 US Dollars.
Example 2: Similarly if you use GPU instead of CPU and have Nvidia 9800GT than its like this. Nvidia 9800GT can generate 30 Mhash/sec and if this system runs for one month with bitcoin software working than the bitcoins generated are ฿3.76 or $26.19 US Dollars.
The Catch?Example 1: Core i3 CPU: - Power required: 80 Watts
- Coins: 50 bitcoins (solving one block would mean you earn 50 bitcoins immediately)
- 50 bitcoins = $350 US Dollars = Rupees 30100/=
- Time required to earn 50 bitcoins at its speed (solve one block): 1348 days, 11 hours, 47 minutes
- Electricity consumed: 2589 kWh
- Rate per kWh in Pakistan: Rupees 13/= estimated
- Cost of electricity for using 2589 kWh electricity = Rupees 33657/=
- Net balance: 30100 - 33657 = -3557
So instead of earning you are actually losing and also this does not include air conditioning costs or even hardware breaks which may occur because of high usage of system along with other things.
Example 2: Nvidia 9800GT:- Power required: 105 Watts
- Coins: 50 bitcoins (solving one block would mean you earn 50 bitcoins immediately)
- 50 bitcoins = $350 US Dollars = Rupees 30100/=
- Time required to earn 50 bitcoins (solve one block): 404 days, 13 hours
- Electricity consumed: 1019 kWh
- Rate per kWh in Pakistan: Rupees 13/= estimated
- Cost of electricity for 405 days or for using 1019 kWh electricity = Rupees 13247/=
- Net balance: 30100 - 13247 = 16853
So you earn roughly 16000 per 405 days that is about 1 year and it does not include air conditioning expenses or hardware breaks that might occur with such high usage along with other things
Lets see another example:
The most higher speeds are from a GPU like ATI 5970: 550 Mhash/sec and it is even recommended GPU by bitcoin, anyway:
Lets see:
- Power required: 300 Watts
- Coins: 50 bitcoins (solving one block would mean you earn 50 bitcoins immediately)
- 50 bitcoins = $350 US Dollars = Rupees 30100/=
- Time required to earn 50 bitcoins (solve one block): 22 days, 1 hour, 35 minutes
- Electricity consumed: 159 kWh
- Rate per kWh in Pakistan: Rupees 13/= estimated
- Cost of electricity for 23 days or for using 159 kWh electricity = Rupees 2067/=
- Net balance: 30100 - 2067 = 28033
Difficulty level
The above values may change because as time passes the difficulty level of the block increases which means more power and time required. Current values are with 244139 difficulty level.
Conclusion:
Having a very fast computer with latest CPU will only lead to huge losses, but having a very fast GPU is beneficial and can even lead to profits. Use at your own risk.
Warning: All values are approximate and no value here is absolute.
Hi Nice article, I have shared this in my blog - you can view it here http://gohardesign.blogspot.com/2011/05/bitcoin-next-generation-currency.html
ReplyDeletethanks?
ReplyDeleteI dont think that the Nvidia option is feasible in my opinion.
ReplyDeleteIf you look at https://en.bitcoin.it/wiki/Mining_hardware_comparison
9800GT churns out 30.36 MHash/s
Use a calculator and put in 30.36 http://www.alloscomp.com/bitcoin/calculator.php
And it will only yeild 0.71 USD a day.
Maybe one of the AMD cards on the list will yeild better returns. However it only seems very marginal at best. Some people are working on purpose specific ASIC's or at least that is the word on the internet. That might yeild higher gains, but then again it is speculative.
Essentially the cost of electricity is a major factor.
@ IT: Yes you are right, as i wrote above that to complete a full block with Nvidia 9800 GT it will take almost more than 1 year and the gains are only theoretical whereas numerous costs have not been accounted, while AMD's 5970 will solve a block in 20 days!!!
ReplyDeleteTo track and verify user transactions Bitcoin implements a type of triple-entry accounting system. To maintain a uniform transaction record in this accounting system a "proof-of-work" computer-code algorithm is used as the basis for a user-transaction journaling process that allows a large group of computers across the network to agree on a single consistent currency transaction account ledger without centralized coordination.
ReplyDeleteThe design allows the transaction process to work over differences in timing, a varying number of participants, even varying levels of honesty, and differences in perspective among the individual participants.
Thanks
Michael
dos computer
What if your computer remains ON all the time without any specific work? Do you think it will still consume additional power to solve the blocks?
ReplyDeleteI mean my laptop remains on all the time so what If I start using this?
@Truth Exposed: Unless you have the high end GPU which will be able to solve the block in under 20 days only than it will be justified. But running a GPU at full for so long will lower the life of all the components of your laptop. You have been warned!
ReplyDeleteI am sad to know that I am very late to start bitcoin mining using GPU. I thought I would start with Solar Panel.
ReplyDelete