OpenWest 2014/Bitcoin

Summary - better to just horde Bitcoins than to mine them

Common languages - SHA256 and Scrypt-N, Script-Jane, XU-coming up

No universal wallet

Wallet is API for each coin

• stores "block chain" (can reference)
• communicates P2P with networks
• provides APIs for interacting with "coin"
• Some have built in wallet (not recommended)

Mining Software

• works with "wallet" to "get work"
  • what "data" & "difficulty"
• cgminer, bgfminer, sgminer, cudaminer
  • vary in support of hardware, similar APUs

CPU Mining - came first, uses desktop or laptop *maybe* kHash/sec

GPU Mining - still around - kHash/sec in a rig

ASIC mining - future - uses custom hardware - MHash/sec -> THash/sec

• Can hook to Raspberry Pi
• Cost is going down exponentially
• Newer chips go obsolete in 6-12 months
• Protocol designs
  • rewards decrease over time
  • difficulty increases w/ more miners
• Solo mining - huge rewards / low probability
• Pool mining - split work - miners split reward

Pools

• Stratum pools or PzPool
• Pool talks to wallet
• Pool dives the work, and manages miners
• Pool is rewarded and shares rewards
• Many payout methods
  • PPS/PPLNS/PPLNSG/etc
  • shelved earnings
• Pool LUCK decides a lot!!

How to choose a POOL:

• Pool % of network hashrate
  • Dominate pools solve more blocks
• Your % of pool
  • You want to leverage the pool < 50% but > 1%
• DDOS resilience
  • Pools are always under attack! Ransom!
• Pool fees
  • 0% - 3% or more transfer fees
• Reputation & communication
  • BitcoinTalk and IRC
• Payout methods vary threshholds or Payout Queues
• Transfer threshold limits
• Automated transfger to wallet or exchange

Exchanges

• Just like stock exchange
  • BTC-e, Cryptsy, Bittrex, Poloniex, CryptoRush
  • Most go to BitcCoin & LiteCoin
• Deposit address for each coin
• Buy & sell orders - auto-sell orders
• Few exchanges to USD
• LocalBitcoins.com

Strategies:

• What is your end goal?
• Mine to hoard - keep a %?
• Mine to sell - sell to what?
• If you want to mine to BTC:
  • multipools (http://poolpickers.eu)
  • manual (http://coinwarz.com)
• Rig leasing
  • lease your hashtag power
  • get pain in BTC
• LeaseRig.net - one of the first
• BetaRigs.com
• NiceHash.com - thresholding!
• Buy Bitcoin - going up by 110% a year and estimated to continue

Notes by Bethany