What skills and equipment do you need to mine bitcoins?

What skills and equipment do you need to mine bitcoins?

Hash Rate

This is the number of calculations that your hardware can perform every second as it tries to crack the mathematical problem we described in our mining section. Hashrates are measured in megahashes, gigahashes, and terahashes per second (MH/sec, GH/sec, and TH/sec. The higher your hashrate (compared to the current average hashrate), the more likely you are to solve a transaction block.

Energy Consumption

All this computing power chews up electricity, and that costs money. It’s worth looking at your hardware’s energy consumption in watts, when making your choice. You want to make sure that you don’t end up spending all of your money on electricity to mine coins that won’t be worth what you paid. Use these two factors to work out how many hashes you’re getting for every watt of electricity that you use. To do this, divide the hash count by the number of watts.

Bitcoin Mining Hardware

Application Specific Integrated Circuits (ASICs) are specifically designed to do just one thing: mine bitcoins at mind-crushing speeds, with relatively low power consumption. Because these chips have to be designed specifically for that task and then fabricated, they are expensive and time-consuming to produce – but the speeds are stunning.

Join a Mining Pool

Now, you’re all set up. Good for you. You thought you were going to be mining more bitcoins than the Federal Reserve prints dollars, didn’t you? Sadly not. You will stand little chance of success mining bitcoins unless you work with other people. You can join Slush Pool here.

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