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