GPU offer a much faster way of solving the algorithms required to generate your coins. These are the most current and accurate listings for GPU hash rates.

When you are mining, the same values that apply for Bitcoin mining will apply to any SHA coin mining. The same is true for Litecoin and all other Scrypt based coins. We feel they currently offer the best bang for your buck if you are operating on a budget.

Of course, you can always replace your graphics card for a better one in the future. Generally, there are only 3 things you want to worry about when building a mining rig. This ledger of past transactions is called the block chain as it is a chain of blocks.

The block chain serves to confirm transactions to the rest of the network as having taken place. Bitcoin nodes use the block chain to distinguish legitimate Bitcoin transactions from attempts to re-spend coins that have already been spent elsewhere. What is Bitcoin Mining? Bitcoin mining is intentionally designed to be resource-intensive and difficult so that the number of blocks found each day by miners remains steady. Individual blocks must contain a proof of work to be considered valid.

This proof of work is verified by other Bitcoin nodes each time they receive a block. Bitcoin uses the hashcash proof-of-work function. The primary purpose of mining is to allow Bitcoin nodes to reach a secure, tamper-resistant consensus.

Mining is also the mechanism used to introduce Bitcoins into the system: Miners are paid any transaction fees as well as a “subsidy” of newly created coins.

The need for speed

This both serves the purpose of disseminating new coins in a decentralized manner as well as motivating people to provide security for the system.

Instead, seek out the version appropriate for your needs. Again, in this example, we are making the assumption that you are using the Windows OS. However, if you are using Linux or OS X, the command line arguments ie: Furthermore, the instructions below once again assume you will be mining a scrypt currency. Extract the software into a folder that can easily be found, eg: Before going any further, make sure that your graphics drivers are up to date.

Navigation menu

Next, press the Windows key together with the “R” key, type in “cmd”, and press “enter”. This will open the command terminal. Use the “cd” command to change the directory to the one housing the cgminer zip file.