Cryptocurrency Mining 101

one of the main questions that I'm asked is how does one obtain units of cryptocurrency and the answer and you have three options one you can find a local seller in your neighborhood give them cash or give them a service or give them a give them up item that they want and they can give you a unit of the currency that's there that's the Destiny probably the easiest way and the quickest way then you have using an exchange service you send your money to this exchange service they send you units of currency back let's let's say Africans for argument's sake you connect to the exchange server you send money you get a coins back instantly now as soon as they get the money and the third route is through mining and then the question becomes what is mining so mining is a process in which people use the processing power in their hardware to uncover blocks blocks of data water blocks blocks are units of data that contain pieces of currency that contain Africans every 10 minutes the Africa land protocol releases 50 coins 50 virtual coins they are locked in a virtual safe though so your processor truck your processor tries random combinations until it gets in the safe being that it's a computer processor you can try a whole bunch of different numbers you know very fast it's not like you know having to twist a little knob it just tries random numbers over and over over till it gets in there and when it gets in there the the generated currency goes to the person who who unlocked it now today mining is done pools which means a whole bunch of people put their computers together and connect to one central server the African server and they all work together to uncover these blocks of data and so what happens the strongest hardware and can try the most numbers before it's unlocked gets the most of the bounty but everybody gets a piece of it everybody who put work in gets a little bit of the bounty it depends it depends on how much processing power you added to a brother Kofi they then respond my computer is so slow I could barely run Firefox without it crashing how can how am I gonna ever give any real processing power to the mining pool and that is a good question most of us have pretty slow computers because we you know don't really know much about them or the maintenance of them and there is where a certain piece of technology comes in called blocky ruptures here's the blocking vector right here lucky rubbers are something called application specific circuit integrated circuits and what that means is its basic called ASIC for short and what that means is that they are pieces of technology that are built for only one task and no matter how slow your computer is if you have one of those you can get a decent amount of random numbers punched in that's called hashing by the way so we'll just call it hashing you'll be able to you be able to hash a lot of random numbers okay so that's one way is mining and getting them out but mining is only gonna last for a certain amount of time it's gonna be hundreds 100 years or 200 years depending on what currency are using but after that and even before the end there's also a small transaction fee that happens every time you make a transaction every time you make an African transaction you're asked do you want to give a little bit to the miners you can give even like 0.0001 percent of your transaction to the miners and then along with the coins that come out of the block they'll also get to split that now while everybody's gonna give a small percentage or even zero the more you give the more likely that the pool will pick up your transaction to see every transaction the pool processes so while they're mining they're also processing transactions and by and in the future when African is a major currency and they're going to be millions of transactions going every you know second that 0.001 percent of every transaction is gonna add up and it's gonna make mining it's gonna make people still mind it's gonna make them want to steal mine so you can use now if you do have a good computer on the other hand you can also use your processor your graphics card mostly AMD graphics cards are the best of the best bit but you can also use Nvidia graphics cards in the video I just wanted to show what mining actually looks like so here you see two screens two terminal screens on the top you see what my CPU hatching looks like I have a quad-core processor which basically means four cores in the process but each core serves as its own processing unit and so each core process is a certain amount of numbers on its own it's not great but it's something as you can see each core process is anywhere from 18 from 1600 to 2200 let's see on average maybe 2,000 and 1900 killer hashes or two mega hashes because in computers when you're talking about units of data you start off with a byte or you start off with a unit then you have a mega unit then then you have a unit then a kilo unit then a mega unit then a Giga unit then a terror unit and so on the same goes for mining but instead of being bytes it's hashes and how much how much how much numbers you can hash and so that that's what my processor is on the second screen at the bottom you have my graphics card which is have some at 23 mega hashes or if you in transit got the killer hashes it would it be 23,000 killer hashes but when once you get too high they change it into it into the next unit into the next unit of measure and then you have my my and then you have my block erupt earth I have two of them in there now and they're both going at 300 mega hashes or 300,000 killer hashes so just think about how much stronger these Asics are remember I said earlier application-specific integrated circuit there they're very small you know and over you can't do you can't do anything else with them outside of mining but when it comes to mining they're very good at that and that's what I have there so my computer overall is it all together I am mining at about a Giga hash all together if you add up everything I'm a little bit under that but I'm right around there McGee can sometimes I bump up to a Giga hash most of the time I'm below it but that's how much numbers I can crunch they were gonna release technology next year that's gonna allow people to get tera hashes of data which is a thousand Giga hashes so that would be like a thousand of what I have right here going so keeping so keep it when you're mining you're gonna definitely need to keep up to date so in a nutshell in the old days you took your pickaxe into the mine or you took your shovel into the mine you took dynamite into the mind and then you try to get what you want out of there today your your mining tool is now your computer or your hardware and you don't go in the cave anymore you don't go in the mine anymore you send your computer there the pools that we connect to with all the other miners those are the new canes those are the new wells or the mines that you're going to get your your valuable rocks out of but our valuable rocks are blocks and inside these blocks are the precious precious coins all right as always any questions you can comment on the YouTube you can email me I am me you can go comment on the article that I'm gonna write to go along with this video yeah let's get this money

5 thoughts on “Cryptocurrency Mining 101”

  1. Hi! Have you tried – Palm Beach Crypto Currency System (Have a quick look on google cant remember the place now)? Ive heard some extraordinary things about it and my father got great results with it.

  2. So Africoin is bitcoin derivative based so that si why ur using Block eruptors? I am a total noob at mining and want to save up to buy equipment so what I need is one desktop, amd card and block eruptors then am good to go to join the pool?

  3. Hey, this thing is much bigger than i realized. Is there anyone mining africoin besides you? I see a lot of vidreos aand info on bitcoin but not africoin. thank you

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