How to mine bitcoin

Chris Haroun
A free video tutorial from Chris Haroun
Award Winning MBA Professor, Venture Capitalist and Author.
4.5 instructor rating • 67 courses • 1,144,187 students

Learn more from the full course

The Complete Cryptocurrency Course: More than 5 Courses in 1

Learn everything you need to know about cryptocurrency and blockchain, including investing, mining and much more!

23:53:08 of on-demand video • Updated July 2021

  • Upon completion of this course, students will be able to invest, mine, trade and thoroughly understand cryptocurrencies
  • Understand what makes a great cryptocurrency as a great long term investment
  • Understand what are the biggest mistakes new investors make in cryptocurrencies?
  • Know how to watch out for scams and managing risk
  • Learn tools to be able to identify the next great cryptocurrency (what to look for & watch out for)
  • Learn how to read charts
  • How to buy Bitcoin
  • How to mine Bitcoin
  • Understand the pros and cons of Bitcoin
  • How to buy Ethereum
  • How to mine Ethereum
  • Understand the pros and cons of Ethereum
  • How to buy Ripple
  • Understand the pros and cons of Ripple
  • How to buy Litecoin
  • How to mine Litecoin
  • Understand the pros and cons of Litecoin
  • How to buy Monero
  • How to mine Monero
  • Understand the pros and cons of Monero
  • How to buy Zcash
  • How to mine Zcash
  • Understand the pros and cons of Zcash
  • How to buy Dash
  • How to mine Dash
  • Understand the pros and cons of Dash
  • How to buy NEO
  • How to mine NEO
  • Understand the pros and cons of NEO
  • How to buy Cardano
  • Understand the pros and cons of Cardano
  • How to buy Stellar
  • Understand the pros and cons of Stellar
  • Know what makes a great cryptocurrency wallet
  • How to get QR Code Wallets + how to use them +how to transfer money out of them
  • Understand the pros and cons of QR Code Wallets
  • How to get USB Wallets + how to use them (Trezor, Ledger Nano S, DigitalBitBox & KeepKey) +how to transfer money out of them
  • Understand the pros and cons of USB Wallets (Trezor, Ledger Nano S, DigitalBitBox & KeepKey)
  • How to get a Coinbase wallet + how to use it +how to transfer money out of this wallet
  • Understand the pros and cons of Coinbase Wallets
  • How to get an Electrum Wallet + how to use it +how to transfer money out of this wallet
  • Understand the pros and cons of Electrum Wallets
  • How to get a Blockchain Wallet + how to use it +how to transfer money out of this wallet
  • Understand the pros and cons of Blockchain Wallets
  • Know what makes a great cryptocurrency exchange (what to look for from researching an exchange)
  • How to use GDAX ("Coinbase Pro")
  • Understand the pros and cons of GDAX ("Coinbase Pro")
  • How to use Poloniex
  • Understand the pros and cons of Poloniex
  • How to use Kraken
  • Understand the pros and cons of Kraken
  • How to use Bittrex
  • Understand the pros and cons of Bittrex
  • How to use Gemini
  • Understand the pros and cons of Gemini
  • How to use Binance
  • Understand the pros and cons of Binance
  • What makes a great ICO...meaning Initial Currency Offering (what to look for from researching an ICO)
  • What are many great cryptocurrency online resources and how to use them (if applicable)
  • How to create a diversified cryptocurrency portfolio
  • Understand what % of your net worth should you consider investing in cryptocurrencies?
  • ....and much much more....
English [Auto] Let's talk about mining Bitcoin now, if you order the ant miner and a power supply unit, I mean the PSU from Pitman's website, and the only thing that you're really going to need is to get an Ethernet cable so you can plug in your ATM directly to your router and I'll show you mine here. So I actually had to hide to run this under the crawl space in my house. And I took a picture of the floor to make sure that my wife wouldn't notice. That doesn't look cool coming out of the vents anyway. You can laugh at me by looking at that picture there, but I do the best I can. The older I get, the better I was. So you cannot get Wi-Fi based miners at this point. It's a little bit tricky. You got to plug this in and then configure the software, which will do in a minute. Now, this is the older ant miner. This is called the S3. I don't use this one anymore because it's out of date. But we took apart this one earlier in the course and recall that there's an Ethernet port right here and the four power supply units here. And you have fans on both sides because these things make a lot of noise. Let me just put this down because it's out of date. This is the S3. Now, this is the mine and we're going to unbox this, my kids love that that YouTube channel unbox therapy. So I'm going to try to do my version of that here. So all you need is the ATM, which I ordered from Amazon, the power supply unit, the PSU and then the cable, and make sure that you have the power cables that will plug in from your power supply unit directly to your mind. And I'll show you how to do all this as well. OK, great. So your call where you want to buy the stuff, just make sure again, I have to reiterate this. It's important to always have a fire extinguisher handy. I have these in most rooms in our house now. They're not that expensive. And also make sure that the the PSU, the power supply unit is compatible with the ATM. If you're not sure, call the company. Do your research, please. OK, great. So here's Orinda. We're going to unbox it now and then we're going to connect it. And once all the power cords are connected and the Ethernet cable is connected as well, then what we'll do is we'll configure the software. And so just bear with me, please. It's going to be very, very loud. OK, so here we go. First of all, unbox to the unboxing personnel out, obviously. So let me let me actually start with the minor unit here. I've got another camera set up there. Hopefully it works as well. So it doesn't come with much. Just basically one piece of paper that tells you how to log into it. And I'm going to teach all that stuff anyway later on in this lecture. So. Take this off. All right, we're having it. OK, great. I mean, just junk. This here looks similar to our other minor. Here we go. Pretty cool. All right, great. So here's the Ethernet port here. OK, you can put an SD card in if you want as well. We're not going to go there, do that at this point. And then you've got the the power supply units will plug into on the top here and fans on both sides, because this thing really is loud. Don't take it apart or you will void your warranty. This is the S9 game with the S3. So let's now open up the power supply stuff, power cable, obviously, and then we'll take this. Rates man. All right, so it looks like this one has the power cables connected already to it, which is great. OK, cool, so we'll plug this here into our electricity unit, the wall. I'll do that at the very end now and let me get my Ethernet cable here. Great. That's plugged in. And then what we'll do is we will plug in these. And there's a lot of these ones. I lost one. We had I think we had four. This one's got a lot more to connect. All right. So I'm just going to go into fast forward mode so I don't waste your time here, but I'm going to connect all of these here in this massive power supply unit directly to here. This reminds me of the old Xbox, which ship with a power unit that looks like a Ghostbuster trap. I'm dating myself. They're old movie, but a good one. All right. So let me plug this in now. OK, I'm going fast forward now. I'll be back in a second and we'll be ready to plug it in. All right, we did it, so the next step is we're just going to plug this into the wall and it's going to get really, really loud. OK, so you don't want to put these in your bedroom, otherwise you won't you won't be able to get a good night's sleep. And my wife and kids would kill me. This thing is really loud, so I'll plug it in. And then what I'll do after that is I'll start working on the software component side to it. So the hardware is all done where you can plug it in. I show you how loud it is. And then what I'll do is in the next part of this lecture, I'm going to transition over just to a screen cast because it's so loud when we can't figure the software hardware done. Software is coming up next. The operating system, the software, I should say, already resides on this unit. It's what we're going to do is we're going to tap into our router, our IP address at home here and configure this. And again, software is already on here. So we're done with the hardware part. Once I plug it in, I feel like Chevy Chase for that movie Christmas Vacation. I'm worried that the power's going to go off once I plug this here in the house. OK, all right. We're good. Camera lights are still on. Not as loud as I thought. OK. All right, cool. So here we we have the power light indicator. You've got the Ethernet plug in here, the power supply unit. And now what we're going to do is I'm going to log into this using my laptop and then we'll configure it and set it up. So she's. Just in case. All right, I'll put that there. OK. So it's just like our GPU, it gets really loud when it's when it's working hard. So anyway, I hope you can hear this. I'm going to transition now to the software side of this so we can configure this using the Internet, using our IP address. OK. All right, I'm keeping it real. I actually blew a fuse. It's OK, though, because they are using a lot of power because they have all these lights on. So I turn the lights off and I want to show you how to log in to this from your home network. And just I log on here and if you're curious, that's how I record on top. All right, I'll bring Blanket. This is actually a scene where I put blankets on the ceiling, on the walls. Christine did like the buildings, but it keeps it quiet so I can record this here. So it's dark. I've been recording all night. It's colder at night to record these things. Obviously, a beautiful sunny day here in San Francisco. Let me keep this real. I have to drive the kids to school the minute. Hold on a second. This is their fourth night room, Andrew. Oh, yeah. I don't know where it is. Sorry. On. I was recording some here. Well, I'll drive to school right now. Yeah, give me a sec. And so I look at the back here of my router and right there I can see that the username is had been the password is password and if you can see that. But right there the router login is that w dot router log login dot net. That's all I need. OK, great. And this is the blue cable that's connected directly to my Aunt Minor. I had another cable go upstairs so I can get access. Kind of a long story. But anyway, keeping it real messy. This is the fortnight room for now. So I've got that. Let's go back now and let's enter in those details. OK, let's log in now to our IT minor, our exec. So we'll go to router log in. Dot net and username is admin. Password is the password. Of course I will change all this after this lecture's done. Then you can see here that I've got twenty nine devices connected to the top right hand box. Yeah, I've got a bunch of my Internet of Things devices that are here, my laptop computer, etc. at the bottom you see at Monaca and that's wired and I don't have that many things that are wired in the house. So I copy that thing. I go to that website, OK, put in root root for the username and password and there you go. We're now looking at the ATM software and this is on the ATM SIAC. So we're using version nine, as you know, unlike the version three I had before. Here is where I'm going to enter in my new password. OK, so the current one is root. It's root root. And now we're going to do. Is we're going to go back to the dashboard and then we're going to go to a mining pool website. It's a great website called Nice Hash. OK. And we are selling. And we're using a machine to sell our mining power. OK, let's do this. OK, so click in the middle and there's I want to earn with my basic machine. Remember, this is an async. OK. And then here we have to enter the algorithm and we know shot to 56 is what we use for Bitcoin, and there's other algorithms for other cryptocurrency as well. OK, if you want a pool, so which can do shot 26, I'm going to select the location closest to me, which is San Jose. And then I'm clicking generate Stratham. OK, we need that entry into our ATM. OK, so we're going to go to our minor now and we're going to chase that for our first pool. And there's a couple more pools as well. I want to also have a secondary pool and a tertiary or a third pool in case that nice hash goes that that USA link goes down. So I'm going to select the other two. They're closest to me, which are Japan and Brazil. OK. Copy. See the JP in the middle there, that's Japan. I'm going to paste that into the second pool and the other third pool. Is going to be Brazil, it's closest to me, and we go generates that's Berzina, Miller, Brazil, peace out there. And now we need to get the worker into the second field there. And what the worker I.D. is just our public key. And I'm actually going to go and get it from Coinbase. So it's a while we're going to use this Coinbase and we'll talk about Coinbase, a lot more detail in part three. So let's go down to wallets Coinbase. OK, and I'm going to enter in the public key from Coinbase so I can get paid, obviously will never enter a private Quiñones season except for. So I'm going to log in here. It's asking for two step verification, so I'm going to get this code. I got it from my iPhone, it was sent automatically a text to me, which is great, good security, and now it's saying, oh, hold on a second, we haven't used this IP address before. And so what I'll do is I have to approve this new address. I'll get an email sent to me directly and I'll just click approve and the email you can see here on the right side there on the left side of the text. And Coinbase actually pretty fast here, proves it pretty quickly. And now what I do is I get my Bitcoin wallet, address my public and private key. No one sees except you. So I need to find out what that address or where to put that address, and if you got to be careful, there's there's a warning there. You can see from Coinbase, if you if you don't enter in the right address, then you could lose your money forever. And even if you enter an address for another while you own, that's not Bitcoin. That money's gone forever. Could be at least. OK. OK, we're making great progress here. We're almost done. And we're almost ready to start mining. OK, and are worker I.D. is our public key, so we can get paid public keys or wallet and turn a password, of course, all into a better one, later you click, save and apply. And now it's going to update our minor, our basic. OK, and I actually screen cast this before, which is why you can't hear the awful loud noise in the background. All right, so we go to miner status. You see here the three you are ls there on the left, USA, Japan, Brazil. OK, in order my user there. That's my public key. Right. Which is that from Coinbase. OK, and once you mind a certain amount, you get a deposit there directly, but the rules are ridiculous thing to show you. Wait a minute, you're going to get a good laugh at this one. Now, we're going to go to Cornwall because I want to show you. That it's not currently profitable for us, but it will be for a lot of you. OK, and this is a great exercise to do, though, just like your comfortable mining with ASICs. So if we go to Bitcoin, we know that our hash rate is 4000 thousand. OK, that's for terahertz or 4000 gigahertz, which we did in the last lecture hour, which is one thousand twenty seven. Our pool fee is one percent. The hardware costs 400 bucks. Whoa. Losing a lot of money days to break even never you can see up there. Not good. OK, but I want to show you how it works anyway. And so if if the price of Bitcoin goes up a lot, this will be profitable. But the difficulty will go up a little bit as well. So we go to eight cents, see what happens there for people in India or China still not profitable. Isn't that amazing? Although it was in the previous lecture only because I recorded the previous lecture a little while ago. OK, so if we change the and the previous lecture price of Bitcoin was much higher at over 9000, now it's seven thousand four hundred. So if we answer that in, again, 9000 or if we even went to with 8000, reproachful, there may eighty four bucks per year at a cost of seven cents. If we changed that just for fun to nine thousand two hundred or so, which is roughly what it was when I recorded the previous lecture, then hey we're making hundred forty six bucks per year. It'll take us about three years to break even. OK. And if you had in cent cost for electricity, you're losing money. This is kind of like just a fun sensitivity analysis for you to hear eight cents now you're making money, which is great. And if the price of Bitcoin goes up an insane amount to, say, twenty thousand, then we're doing really well. And we're going to break even pretty quickly in one hundred and fifty days when we see their 150 days make nine or sixty eight bucks per year. However, the difficulty will go up a lot if Bitcoin rises that much to twenty thousand. So now let's let's take a look to see. I hit refresh there. OK, so three minutes have elapsed. Let's see if we can find any bitcoin. Now we're going to go to find Miner, OK? We're entering our public key marabouts or Coinbase address to see how we're doing if we find anything. We're one of the nice house Web site. And it looks like we've mined a little bit, actually. OK, good. I mean, it's only a penny. But at least it's a start, and given the higher price of electricity where I live right now, despite my solar, it's actually still losing money. So there we go. We're going to make a buck fifty nine per day or forty seven or forty bucks per per per year. But here's the ridiculous. All right. So if your balance is greater than point zero zero one, you get paid if you have a nice hash wallet. But if you have an external wall like I do Coinbase, I don't get paid unless I have point one Bitcoin generator or higher. This is the ridiculous part. Check this out, OK? OK, the only way you can withdraw funds is between these crazy hours here, OK, and I don't know about you, but it might be the middle of the night for you like it is for me to scroll down and check out some charts here on the nice website. And the other line is how much revenue we've made, which is always increasing. OK, and then we got the profitability, which is the black line. I can hit refresh to see if we've made more money. Let's see here, oh, look, we made two cents now. OK, cool, great, great. All right, in about 15 minutes or so, OK, looks like we didn't mind anything the past minute or to see there that the black lines down to the right there at zero. OK, it'll pop back up your your machines can never be 100 percent efficient. OK, so in the past 12 minutes, we've mined about two pennies or so. OK, so what does that mean to pennies? Well, two pennies in 12 minutes. Let's do some math there. Just go to. OK, two cents in 12 minutes is this much per minutes. Yes, that much per minute now we'll multiply that by 60 to see how much we would make in an hour. OK, so it rounds up to 10 cents. That's roughly 10 cents, OK? All right, so we're making 10 cents per hour, roughly, OK? And we know that where I live right now, I'm actually probably losing a bit of money on this because electricity prices are a little bit higher and this is very, very rough. But if we go back to coin wars and we answer in 10 cents. OK, and I was playing around, you see the numbers down there, I had twenty thousand dollars for Bitcoin, but let's go to ten cents or actually make it fourteen, which is what it costs for most people in California right now shows a profit only because I've got twenty thousand there for Bitcoin, which which is not right. That's not where it is now, is just kind of playing rough numbers. But if I copy and paste the seven thousand four hundred seventy one where Bitcoin is right now and we scroll down, we're losing that much money per year. It's not a profitable thing for me to be mining Bitcoin with this haziq, OK, at least with the cost of electricity where I am right now, despite the fact that I have solar. OK, so if the the price of Bitcoin jumps, then, yes, it will be profitable. Or if I have cheaper electricity, it will be profitable. Let's do a refresh here, see if I've made any more money here, OK? Maybe a touch more, barely still two pennies, roughly. OK, so I think you get the idea on how it works. If you have questions, please let me know. Please don't buy all of that. OK, looks like we're back online now. OK, but please don't buy this machine unless you use coin Warsaw, as I showed you in this lecture and the previous lecture. And it's profitable for you. OK, I want to save you time and save you save your money as well, but it's important to understand how a process works because some crypto currencies that you can use a GPU with now are going to be so much more competitive in the future to mind. With that, you might have to get an async. And the process is quite similar to this one. Minie with an async is a lot easier because the software has already been installed when when we might with CPU's and computers we made, which you'll see starting with ether in the next part of the course 2.0, you'll see that it's more complicated because we have to install our own software, which I'll show you how to do. So, again, if you have any questions, please let me know, but that's a pretty good introduction to mining and we are now officially done with part two point one. So please click on button two point one on your Excel dashboard and then go to the sixth row and click the checkbox so that you have marked two point one as complete. I will see you in two point two where we talk about etherial. Thanks.