30 Days of Understanding Bitcoin: Part 5 – Mining Litecoin & other Scrypt Alt Coins

  1. The alt-currencies that also use SHA-256 are too difficult to mine without fancy equipment, so the only option is to mine on currencies using Scrypt such as Litecoin or the other ones that follow Litecoin
  2. No company has yet figured out how to make hardware to mine scrypt other than with graphic cards
  3. One company called Alpha-T (LINK: https://alpha-t.net/) claims they have found a way and are pre-selling a 5MB and 25MB card, but the audience is divided as to whether they are legit or not (And because they are asking for 30% prepayment now, and the remainder 8 to 10 weeks before they deliver, and only believe they can deliver in either Q2 or Q3 this year, the savvy people believe that faster AMD graphic cards would have already been released which make their current offerings not so attractive in a few months time)
  4. So anyone with a AMD graphics card (LINK: https://litecoin.info/Mining_hardware_comparison/raw_data) can make something from mining (provided the electricity isn’t prohibitive – I haven’t figured out yet the cost of how much electricity I’m using from mining)
  5. The clever guys are using rigs, which is a computer with mainly just multiple graphic cards – from what I understand you can have 3 graphic cards in a rig, and up to 6 (I’m looking to build my own rig in the next few weeks, but haven’t got there yet) (LINK: http://www.forbes.com/sites/jasonevangelho/2013/12/09/litecoin-101-how-to-build-your-own-mining-rigs/)
  6. To actually mine, you can’t use the cgminer program which bitcoin uses – rather you use a modified program called GuiMiner-Scrypt  (LINK: I downloaded it from an unofficial link, and after searching now, I’m actually not sure what the official URL is), you register for one of many pools, (LINK: https://litecoin.info/Mining_pool_comparison) and then enter the details into the GuiMiner-Scrypt program
  7. There is talk about cloud mining for some of the scrypt’s being viable, but I haven’t tried it yet (LINK: http://www.cryptocoinsnews.com/2013/12/04/primecoin-cloud-mining-using-digital-ocean-complete-guide/)
Eric Edelstein30 Days of Understanding Bitcoin: Part 5 – Mining Litecoin & other Scrypt Alt Coins