| zero129 said: Ok what is this Bitcoins and how do i mine them?? |
It's just a virtual currency. Succinctly, bitcoins are a completely digital currency. You receive payouts, in bitcoins, for your work of verifying the network and ensuring its fidelity (i.e. "mining") by running a mining client (program that links into the network and sends and receives work). Then, you can sell your bitcoins on exchanges, like mtgox, for actual money.
http://forums.anandtech.com/showthread.php?t=2167303
In simplest terms you just have to download a program that allows the GPU to calculate a bunch of mathematics (BitCoin client) and you get rewarded with these bitcoins from Pools (this is basically when people team up together to do the calculations). The bitcoins then get deposited to your Pool and allocated among the contributing members. All of this is done automatically. Then you just need a BitCoin Wallet where you deposit your bitcoin rewards. Then you can sell the bitcoins for real world currencies, like USD, or buy gift cards with them at places like Newegg/Amazon. The downside is that when the graphics card is performing these mathematical operations, it gives off a ton of heat, uses a lot of power, and you can't play games on the computer (but you can browse the net and do basic things). So it might not make sense for everyone, especially people in warm climates, or those who pay high rates of electricity (Hawaii).
When people spend bitcoins online, someone has to check that the transaction was legitimate (just like if you spend $ at a store, your credit card and the store communicate with each other). The act of checking this is just a complex mathematical computation that requires GPU processing power. Because your GPU does this calculation, you get "rewarded" by the network with bitcoins. Then you spend the bitcoins and other people check your own transaction and also get rewarded. The cycle continues.
What's your cost of electricity per kWh?
