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Cover image for Cryptocurrency mining for dummies
Title:
Cryptocurrency mining for dummies
ISBN:
9781119579298
Physical Description:
xi, 346 pages : illustrations ; 24 cm.
General Note:
Includes index.
Contents:
Cryptocurrency explained -- Understanding cryptocurrency mining -- Building blocks: the transaction's journey to the blockchain -- Exploring the different forms of mining -- The evolution of mining -- The future of cryptocurrency mining -- Mining made simple: finding and preparing a pool account -- Picking a cryptocurrency to mine -- Gathering your mining gear -- Setting up your mining hardware -- Running the numbers: is it worth it? -- Reducing negatives and gaining an edge -- Running your cryptocurrency business -- Ten or so tips for when the market dips -- Ten ways to boost ROI -- Ten types of cryptocurrency resources -- Ten criticisms of cryptocurrencies and mining.
Added Author:
Summary:
This book shares the insight of two cryptocurrency insiders as they break down the necessary hardware, software, and strategies to mine Bitcoin, Ethereum, Monero, LiteCoin, and Dash. They also provide insight on how to stay ahead of the curve to maximize your return on investment. --
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Summary

Summary

Find out the essentials of cryptocurrency mining

The cryptocurrency phenomenon has sparked a new opportunity mine for virtual gold, kind of like the prospectors of a couple centuries back. This time around, you need some tech know-how to get into the cryptocurrency mining game.

This book shares the insight of two cryptocurrency insiders as they break down the necessary hardware, software, and strategies to mine Bitcoin, Ethereum, Monero, LiteCoin, and Dash. They also provide insight on how to stay ahead of the curve to maximize your return on investment.

Get the tech tools and know-how to start mining Pick the best cryptocurrency to return your investment Apply a sound strategy to stay ahead of the game Find cryptocurrency value at the source

From the basics of cryptocurrency and blockchain to selecting the best currency to mine, this easy-to-access book makes it easy to get started today!


Author Notes

Peter Kent is a longtime technology author who also created the online course Crypto Clear: Bitcoin Cryptocurrency Made Simple.
Tyler Bain is a professional engineer who specializes on the electrical grid. He is also a Certified Bitcoin Professional who focuses on system resiliency and mining mechanics.


Table of Contents

Introductionp. 1
About This Bookp. 1
Foolish Assumptionsp. 2
Icons Used in This Bookp. 2
Beyond the Bookp. 3
Where to Go from Herep. 3
Part 1 Discovering the Basics of Cryptocurrencyp. 5
Chapter 1 Cryptocurrency Explainedp. 7
A Short History of Digital Dollarsp. 7
First, take the Internetp. 8
Add credit card confusionp. 8
Add a dash of David Chaump. 9
Result? DigiCash, E-Gold, Millicent, Cybercash, and Morep. 9
The Bitcoin whitepaperp. 10
Bitcoin: The first blockchain appp. 11
Who (or what) is Satoshi Nakamoto?p. 11
What's the Blockchain?p. 12
Blockchain around the world - the blockchain networkp. 13
Hashing: "Fingerprinting" blocksp. 13
Blockchain is "immutable"p. 14
Where's the Money?p. 16
What's the Crypto in Cryptocurrency?p. 17
Public Key Encryption Magicp. 19
Messages to the blockchainp. 21
Signing messages with the private keyp. 21
The blockchain address - your money's homep. 22
Sending a transaction messagep. 22
Unraveling the messagep. 23
The Basic Components of Cryptocurrencyp. 24
What's in a wallet?p. 25
Private keys create public keysp. 25
Public keys create blockchain addressesp. 25
The private key controls the addressp. 26
Where Does Crypto Come From? The Crypto Mines (Sometimes)p. 26
Chapter 2 Understanding Cryptocurrency Miningp. 29
Understanding Decentralized Currenciesp. 29
Exploring the Role of the Crypto Minerp. 31
Making Cryptocurrency Trustworthyp. 32
The Byzantine Generalsp. 33
Looking at the Cryptocurrency Minerp. 35
Making the Crypto World Go 'Roundp. 37
Chapter 3 Building Blocks: The Transaction's Journey to the Blockchainp. 39
The Cryptocurrency Networkp. 40
Submitting Transactionsp. 43
Looking at transaction feesp. 44
Change addressp. 45
Verifying the transactionp. 46
Competing for bitcoin, the ten-minute contestp. 47
Winning the Bitcoinp. 49
Chapter 4 Exploring the Different Forms of Miningp. 51
Proof of Work Algorithmsp. 51
Proof of Work applicationsp. 53
Proof of Work examplesp. 54
Upsidesp. 56
Downsidesp. 56
Proof of Stake Algorithmsp. 57
Proof of Stake explainedp. 58
Proof of Stake selectionsp. 60
PoS example cryptocurrenciesp. 61
Upsidesp. 61
Downsidesp. 62
Hybrid Proof of Stake/Proof of Workp. 63
Hybrids explainedp. 63
Hybridized examplesp. 65
Upsidesp. 66
Downsidesp. 66
Delegated Proof of Stake (dPoS)p. 67
Delegated Byzantine Fault Tolerance (dBFT)p. 67
Proof of Burn (PoB)p. 68
And Morep. 69
Part 2 The Evolution of Cryptocurrency Miningp. 71
Chapter 5 The Evolution of Miningp. 73
Proof of Work Mining Evolutionp. 74
CPU miningp. 74
Adoption of GPUsp. 74
Rise of the FPGAsp. 75
Dominance and efficiency of ASICsp. 75
The Days of Solo Miningp. 77
Pool Miningp. 78
What is a mining pool?p. 78
Choosing a poolp. 79
Pros and cons of pool miningp. 80
Cloud Miningp. 81
Pool mining versus cloud miningp. 81
Pros and cons of cloud miningp. 82
Chapter 6 The Future of Cryptocurrency Miningp. 83
Incentivization of Energy Explorationp. 83
Recovery of otherwise wasted resourcesp. 84
Continued Computational Efficiency Improvementsp. 85
Doing more with lessp. 86
Approaching the limits of physicsp. 86
Corporate and Nation State Participationp. 87
Nation statesp. 87
Corporationsp. 89
Future speculationp. 89
The Mythical Miner Death Spiralp. 90
Block difficultyp. 90
Block difficulty adjustment algorithmp. 91
Miners of last resortp. 93
Part 3 Becoming a Cryptocurrency Minerp. 95
Chapter 7 Mining Made Simple: Finding and Preparing a Pool Accountp. 97
Understanding How Pool Mining Worksp. 98
Choosing a Poolp. 99
Pools that are good starting pointsp. 100
A few of the largest poolsp. 101
Incentives and rewardsp. 103
Pool ideologyp. 105
Pool reputationp. 106
Pool feesp. 107
Pool percentage of the total networkp. 108
Setting Up a Pool Accountp. 110
Server choicep. 110
Mining equipment pool settingsp. 111
Payout addressesp. 112
Payout thresholdsp. 112
Researching Mining Poolsp. 113
Cloud Miningp. 114
Working with Honeyminerp. 115
Chapter 8 Picking a Cryptocurrency to Minep. 121
Determining Your Goalp. 122
Mineable? PoW? PoS?p. 124
Researching Cryptocurrenciesp. 125
Mining profitability comparison sitesp. 125
Algorithms and cryptocurrenciesp. 129
The cryptocurrency's details pagep. 136
Mining-profit calculatorsp. 138
The cryptocurrency's home pagep. 139
GitHubp. 140
The cryptocurrency's Wikipedia pagep. 141
Mining forumsp. 142
Going Deepp. 142
Longevity of a cryptocurrencyp. 142
Hash rate and cryptocurrency securityp. 143
Community supportp. 144
Decentralization Is a Good Thingp. 146
It's an Iterative Processp. 150
Chapter 9 Gathering Your Mining Gearp. 151
Selecting the Correct Computational Mining Hardwarep. 151
Specified hash ratep. 152
Specified power consumptionp. 154
Equipment cost and other considerationsp. 159
Length of time your hardware will be viablep. 160
Mining Equipment Manufacturersp. 162
ASIC rig producersp. 162
GPU rig producersp. 163
A Wallet to Store and Protect Your Private Keysp. 163
Types of walletsp. 164
Securing and backing up your walletp. 166
Where to Mine? Selecting a Viable Locationp. 167
Vet your home for cryptocurrency miningp. 167
Communication requirementsp. 168
Power source thoughtsp. 169
Data centers and other dedicated commercial locationsp. 173
Chapter 10 Setting Up Your Mining Hardwarep. 175
ASIC Mining Rigsp. 175
Racksp. 176
Power supplyp. 177
PDUsp. 179
Network and Ethernet connectionp. 179
A computer to control your rigp. 180
GPU Mining Rigsp. 183
Getting your GPU rig onlinep. 183
Building your own GPU minerp. 184
CPU Miningp. 195
Mining Softwarep. 196
Pool miningp. 196
Solo miningp. 200
Part 4 The Economics of Miningp. 203
Chapter 11 Running the Numbers: Is it Worth It?p. 205
Factors That Determine Mining Profitabilityp. 206
Cost of equipmentp. 206
Hash rate of your equipmentp. 208
Mining rig efficiencyp. 211
Cost of maintenancep. 214
Cost of facilitiesp. 215
Cost of electricityp. 215
Total network hash ratep. 218
Information about your poolp. 219
Block earningsp. 219
Cryptocurrency conversion ratep. 220
Calculating Your ROIp. 220
Your block earningsp. 221
Your expensesp. 225
Calculating ROIp. 225
Knowing the unknownsp. 226
Online profitability calculatorsp. 227
Historical estimatesp. 228
Chapter 12 Reducing Negatives and Gaining an Edgep. 231
Profitability Through Efficiencyp. 232
Upgrading ageing equipmentp. 232
Mining different cryptocurrenciesp. 232
Using exhaust heatp. 233
Reducing electricity billsp. 234
Knowledge Is Powerp. 236
Why current events are importantp. 237
The "fork wars"p. 238
Your forking decisionsp. 241
Here Today, Gone Tomorrowp. 245
Evaluating Your Mining Resourcesp. 247
Increasing mining competitionp. 247
Increasing block difficultyp. 247
Diminishing returns due to halving eventsp. 248
Chapter 13 Running Your Cryptocurrency Businessp. 251
What to Do with Your Mined Cryptocurrencyp. 252
Convert your cryptocurrencyp. 252
Buying equipment and paying billsp. 252
Paying with crypto when you can't pay with cryptop. 253
Expand or upgrade your mining operationp. 255
But don't forget the taxp. 255
Hodling your cryptocurrencyp. 256
Invest your cryptocurrencyp. 257
Donate your cryptocurrency to charityp. 257
Gift your cryptocurrencyp. 258
Determining When to Sellp. 259
Cryptocurrency market indicatorsp. 259
Where to sell: Cryptocurrency exchangesp. 262
Dollar Cost Averagingp. 264
Dollar cost averaging your purchasesp. 265
Cost averaging your exitsp. 266
Custodial exchange riskp. 267
Tax and Your Mining Businessp. 267
But you're mining, not investingp. 269
It gets complicatedp. 270
Scaling Up?p. 271
Do not overextendp. 271
Milestones to meet before you reinvestp. 272
Planning your expansionp. 274
Part 5 The Parts of Tenp. 275
Chapter 14 Ten or So Tips for When the Market Dipsp. 277
Have a Planp. 278
How Long Can You Last?p. 279
Learn from Market Historyp. 281
Don't Panic! (Keep Calm and Carry On?)p. 284
Buy the Dipp. 285
Look for the Advantagesp. 286
Anticipate the Market Recoveryp. 287
Learn From Your First Dipp. 287
Consider Market Volatilityp. 288
Switch to Another Cryptocurrencyp. 291
Stop Mining!p. 291
These are simple calculationsp. 293
Stop or go?p. 294
Chapter 15 Ten Ways to Boost ROIp. 297
Doing Your Homeworkp. 297
Timing Your Entryp. 298
Playing the Marketsp. 299
Identifying Low Hash Rate Alternative Cryptocurrenciesp. 299
Mining the Start of a Chainp. 300
Starting Smallp. 302
Scaling Choicesp. 303
Finding Cheap Electricityp. 303
Cooling Efficientlyp. 305
Scoring Hardware Dealsp. 306
Chapter 16 Ten Types of Cryptocurrency Resourcesp. 307
Cryptocurrency Market Trackersp. 308
Mining Profitability Estimation Toolsp. 308
Cryptocurrency Reddit Pagesp. 308
Blockchain Explorersp. 309
Data Visualizationsp. 310
Cryptocurrency Data and Statisticsp. 311
Cryptocurrency Wiki'sp. 311
Lopp.net Resourcesp. 312
Cypherpunk Manifestop. 312
Cryptocurrency White Papersp. 312
The Satoshi Nakamoto Institutep. 313
Chapter 17 Ten Criticisms of Cryptocurrencies and Miningp. 315
Energy Consumptionp. 316
Wasted Processingp. 319
Scalability, Transaction Speed, and Throughputp. 321
Coin Distribution Fairnessp. 323
Market Bubbles and Volatilityp. 323
Centralizationp. 324
Scams and Rip-offsp. 325
Hardware Price Inflation and Scarcityp. 326
Fire Hazardsp. 326
Neighbor Complaintsp. 327
Indexp. 329
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