How to mine bitcoin

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(A+B) How to Mine Bitcoin

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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!

23:57:51 of on-demand video • Updated June 2023

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 Bitmain's website, then the only thing that you're really going to need is to get an Ethernet cable so you can plug in your ant miner directly to your router and I'll show you mine here. So I actually had to I had to run this under the crawl space of 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 WiFi based miners at this point. It's a little bit tricky. You got to plug this in and then configure the software, which we'll do in a minute. Now, this is the older miner. This is called the SX three. 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 then 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 SE three. Now this is the S' 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 amp minor, which I ordered from Amazon. The power supply unit, the PSU, and then the Ethernet cable. And make sure that you have the power cables that will plug in from your power supply unit directly to your amp. I'll show you how to do all this as well. Okay, great. So your call where you want to buy this 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 AMP minor. If you're not sure, call the company. Do your research, please. Okay, great. So here's what we're gonna do. 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. So here we go. First of all, unboxing the unboxing part and all that, obviously. So let me let me actually start with the minor unit here and I've got another camera setup there. Hopefully it works. Hopefully you can see it 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 you all that stuff anyway later on in this lecture. So. Just take this off. All right. Sure. Heavy. Okay. Great. Let me just jump this here. Looks similar to our other miner. Here we go. Pretty cool. Oops. All right, great. So. Here's the Ethernet port here. 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 of both sides because this thing really is loud. They don't take it apart or you will void your warranty. This is the SE nine again with the SE three. So let's now open up the power supply stuff, power cable obviously. And then we just take this out here. Great Pittman. All right. So it looks like this one has the power cables connected already to it, which is great. Okay. Cool. So we'll plug this here into our electricity unit in the wall. I'll do that at the very end, though, 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 wow, there's a lot of these ones. My last one we had, I think only 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 shipped with a power unit that looked like a Ghostbuster trap. I'm dating myself there. It's an old movie, but a good one. All right, so let me plug this in now. 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. 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 because this thing is really loud. So anyway, 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. We're going to plug it in. I'm going to 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 screencast because it's so loud when we configure 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 in that movie Christmas vacation, and I'm worried that the power's going to go off once I plug in this here in the house. Okay. All right. We're good. Camera lights are still on. It's actually not as loud as I thought. Okay, so. All right, cool. So here we we have the power light indicator. You've got the Ethernet plugged 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 just so. Just in case. All right. I'll put that there. Okay. 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. Okay. All right. I'm keeping it real. I actually blew a fuse. It's OC, though, because Aunt Monitor uses a lot of power. Because I had all these lights on. So I turn the lights off. And I want to show you how to log into this from your home network. And just I log on here and if you're curious, that's how I record the top. All right, my ugly blanket. This is actually a Sandra. I put blankets on the ceiling, on the walls. Christine didn't like it because of the crowd moments, but it keeps it quiet so I can record. This here is so dark. I've been recording all night. It's colder at night to record these things, obviously. Beautiful, sunny day here in San Francisco. I'm going to keep this real. I have to try the kids to school in a minute. Hold on 1/2. This is their Fortnite room. Hey, Andrew, how are you? No, I don't know where it is. Sorry. Hold on. I'm sure something here. Well, I'll drive you to school in that case. All right. Yeah. Give me a second. And so I look at the back here of my 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 WW dot router login dot net. That's all I need. Okay, great. And this is the blue cable that's connected directly to my minor. I had another cable go upstairs just so I can get access. Kind of a long story, but anyway, keeping it real messy. This is the Fortnite room for now. So I've got that. Let's go back now and let's enter in those details. Okay, let's log in now to our antminer, our async. So we'll go to router login netspend. Username is admin. Password is the password. And of course, I will change all this after this lecture is done. Then you can see here that I've got 29 devices connected in the top right hand box, and I've got a bunch of my Internet of Things devices that are here, my laptop computer, etc. At the bottom you see ant miner and that's wired. And I don't have that many things that are wired in the house so and a copy that they're going to go to that website put in root root for the username and password and there you go. We're now looking at the Antminer software and this is on the Antminer itself, the ASICs. 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. Okay, so the current one is a root. It's root root. And now what 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. Okay. And we are selling. And we're using an ace machine to sell our mining power. Let's do this. Okay, so click in the middle one. There's I want to urn with my async machine. Remember, this is an basic. Okay. And then here we have to enter in the algorithm and we know SHA256 is what we use for Bitcoin and there's other algorithms for other cryptocurrencies as well. If you want to pool so we're going to do SHA256, I'm going to select the location closest to me, which is San Jose. And then I'm clicking generate stratum K and we need that to enter into our miner. So we're going to go to our amp miner now and we're going to paste that for our first pool. And there's a couple of 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 USA link goes down. So I'm going to select the other two that are closest to me, which are Japan and Brazil. Copy. See the JP in the middle there. Let's talk 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 BRC in the middle there Brazil paste that there and now we need to get the worker idea the second field there and what the worker ID is just our public key. And I'm actually going to go and get it from Coinbase. So that's what we're going to use is Coinbase and we'll talk about Coinbase in a lot more detail in part three. So let's scroll down to wallet. Coinbase. Okay. And I'm going to enter in the public key from Coinbase so I can get paid. Obviously, we'll never enter our private key no one sees except for you. Okay. 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. It texted to me, which is great. It's good security. And now it's saying, whoa, 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 is the text. And Coinbase actually is pretty fast. It improves it pretty quickly. And now what I do is I get my Bitcoin wallet address, my public key. Okay, again, 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've 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 that money's gone forever. Could be at least. Okay, okay. We're making great progress here. We're almost done, and we're almost ready to start mining. Okay. And our worker ID is our public key. So we can get paid, get public keys while entering a password. Of course. I'll enter a better one. Later you click Save and apply. And now it's going to update our minor. Our basic. Okay. And I actually screencast this before, which is why you can't hear the awful loud noise in the background. All right. So we go to minor status. You see here the three URLs there on the left, USA, Japan, Brazil, in order, my user there, that's my public key right, which is that from Coinbase. Okay. And once you mind a certain amount, you get a deposit there directly. But the rules are ridiculous. I'm going to show you why in a minute. You're going to get a good laugh at this one. Now we're going to go to Coin Wars because I want to show you. That it's not currently profitable for us, but it will be for a lot of you. And this is a great exercise to do, though, just that you're comfortable mining with ASICs. So if we go to Bitcoin, we know that our hash rate is 4000. That's for terahertz or 4000 gigahertz, which we did in the last lecture. Our wattage is 1027. Our pool fee is 1%. The hardware costs 400 bucks. Whoa. Losing a lot of money. Days to break even. Never. You can see up there. Not good, 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 if we go to $0.08, 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. Okay. So if we change the and the previous lecture, the price of Bitcoin was much higher at over 9000. Okay, now it's 7400. So if we enter that in again 9000 or if we even went to which 8000, we're profitable there maybe 84 bucks per year at a power cost of $0.07. If we change that just for fun to 9200 or so, which is roughly what it was when I recorded the previous lecture, then, hey, we're make 146 bucks per year and it'll take us about three years to break even. Okay. And if you enter in ten cent cost for electricity, you're losing money. This is kind of like just a fun sensitivity analysis for you to do here. $0.08. Now you're making money, which is great. And if the price of Bitcoin goes up an insane amount to say, 20,000, then we're doing really well. And we're going to break even pretty quickly in 150 days. When we see their hundred 50 days, we make 968 bucks per year. However, the difficulty will go up a lot if Bitcoin rises that much to 20,000. So now let's take a look to see I hit refresh there. Okay, so 3 minutes have elapsed. Let's see if we've mined any Bitcoin. Now we're going to go to find Miner. We're going to enter in our public key. Remember, that's our Coinbase address to see how we're doing. So if we find anything. We're one of the nice Hass website. And it looks like we've mined a little bit, actually. Okay, 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 59 per day or 47 or 48 bucks per per per year. But here's the ridiculous thing. Okay. All right. So if your balance is greater than 0.001, you get paid if you have a nice hash wallet. But if you have an external wallet like I do a Coinbase, I don't get paid unless I have 0.1 bitcoin generated or higher. This is the ridiculous part. Check this out. Okay. Okay. The only way you can withdraw funds is between these crazy hours here. And I don't know about you, but it might be the middle of the night for you like it is for me. Okay, let's scroll down and check out some charts here on the nice hash website. And the yellow line is how much revenue we've made, which is always increasing. And then we've got the profitability, which is the black line. I'm going to hit refresh to see if we've made more money. Let's see here. Oh, look, we made $0.02 now. Okay, cool. Great. Great. All right. In about 15 minutes or so, it looks like we didn't mind anything in the past minute or two. See there the black lines down to the right there at zero. It'll pop back up. Your your machines can never be 100% efficient. Okay. So in the past 12 minutes, we've mined about two pennies or so. Okay. So what does that mean to Penny's? Well, to Penny's in 12 minutes. Let's do some math there. Just go to. Okay. $0.02 in 12 minutes. Is this much per minutes? Okay. That's that much per minute. Now we'll multiply that by 60 to see how much we would make in an hour. Okay. So it rounds up to $0.10. That's roughly $0.10. All right. So we're making $0.10 per hour, roughly. 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 enter in $0.10. Okay. And I was playing around and see the numbers down there. I had $20,000 for Bitcoin, but let's go to $0.10 or actually make it 14, which is what it costs for most people in California. Right. It shows a profit only because I've got 20,000 there for bitcoin, which is which is not right. That's not where it is now. It's just kind of playing rough numbers. But if I copy and paste these 7271 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 basic, at least with the cost of electricity where I am right now, despite the fact that I have solar. Okay, so if the price of bitcoin jumps, then yes, it will be profitable. Or if I have cheaper electricity, it will be profitable. Okay, let's do a refresh here, see if I've made any more money here. Okay. Yeah. Maybe touch more. Barely. Still two pennies, roughly. Okay, so I think you get the idea on how it works. If you have questions, please let me know. Please don't buy my. Oh, look that. Okay. Looks like we're back on line now. Okay, good. But please don't buy this machine unless you use coin. WorldCom, as I showed you in this lecture. In the previous lecture. And it's profitable for you. I want to save you a time and save you. Save you money as well. But it's important to understand how basic process works because some cryptocurrencies that you can use a GPU with now are going to be so much more competitive in the future. To mine, with that, you might have to get in basic and the process is quite similar to this one. Now mining with an assist is a lot easier because the software has already been installed when when we mined with GPUs and computers we made, which you'll see starting with ether in the next part of the course 2.2 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 2.1. So please click on button 2.1 on your Excel dashboard and then go to the sixth row and click the checkbox so that you have marked 2.1 as complete. I will see you in 2.2 where we talk about Ethereum. Thanks.