What do Bitcoin mining machines do to earn money?
The Bitcoin mining machines are Application Specific Integrated
Circuits
(ASIC) which do the following functions automatically:
* Keeps the Bitcoin network lively on the world wide web
* Helps maintain majority rule of the valid programming code
* Process transactions - buying and selling of products & services
* Makes sure buyer and seller have legitimate 34 character codes
* Prevents duplicate spending of Bitcoin simultaneously
* Compressing and storing the public transaction ledger
* Creates new coins on a timed schedule towards a max of 21 million
* Encrypts and decrypts transaction transmissions
* Wards off hackers, checks for unauthorized changes
* Prevents overspending of accounts - impossible for BTC to bounce
* Sends receipts to buyers and sellers of the Bitcoin transaction.
* All the user needs to know is the green light means it is mining.
The Bitcoin network is programmed to reward miners with
fractions
of Bitcoins, in proportion to the work done by each machine.
Bitmain
Antminer S3 480 GigaHash
per second Bitcoin miner for $500,
plus $50 power supply
which pays itself off at $5/day in about 110 days,
assuming the current BTC price of about $600.
Electrical costs
www.eia.gov/electricity/state updated to 2012 (lazy US Dept of Energy workers still working on 2013 and 2014)
S1 Model
mining/AntMiner S1
Manual_EN.pdf
Graphics
CPU
Graphics Processing Unit
Field Programmable Gate Array
Appliation Specific Integerate Cricuit
Bitcoin mining income spreadsheet 2014