Crypto Currencies, Bitcoin, and Quark for Newbies

Crypto currencies are on the rise. Don’t ask me why, because I don’t think I know the whole answer to this. Sure, I can make few indirect, incoherent, suggestions that may suggest why crypto currencies are on the rise, but I won’t as I know that will open up all sorts of crazy talk against me and whatever. Nonetheless, as I’m speaking, the crypto currencies such as Bitcoin and Quark are gaining in value, tremendously. How so? It’s now that 1 Bitcoin is worth around $1000 or more. Let us check out the link below and you will see that I’m not making this stuff up.

http://bitcoinity.org/markets

Anyhow, Quark is the newest crypto currency yet, and it is also on the rise. The developers for Bitcoin who are also developing Quark boast that Quark is even more secure than Bitcoin. How so? They suggest that Bitcoin was the very first crypto currency they had worked on, and there were many mistakes that they had made with Bitcoin. Although they weren’t the one who came up with Bitcoin and the whole idea of Bitcoin, but they were the ones who worked on Bitcoin platform to improve Bitcoin crypto currency in general. Nonetheless, the mistakes they made with Bitcoin are now being fixed by Quark. Basically, I’m not sure I understand about Bitcoin and Quark underlying technologies all that well, but what I can comprehend from their saying is that Quark is way more secure since Quark relies on more than one encryption. In fact, if I’m not wrong, Quark is relying on 6 different encryption technologies while Bitcoin is only relying on one encryption technology. With more underlying encryption technologies behind Quark, it’s much harder for people to figure out how to break Quark’s encryptions at a go, therefore it won’t be easy to bring down the whole Quark crypto currency in time. With Bitcoin, whoever knows how to break its underlying encryption technology will be able to mint Bitcoin however he or she wants. It means, he or she can be rich in Bitcoin whenever he or she wants.

Of course, my understanding of these two crypto currencies’ underlying encryption technologies are clearly limited, therefore what I’m spewing might seem to be very uneducated, regardless to Bitcoin and Quark. Nonetheless, if I’m not wrong, then what I’m saying might have some merits, therefore what I’m saying might help you scratch the surface, somewhat revealing how these crypto currencies work.

Anyhow, at this moment, crypto currencies aren’t yet clearly labeled as illegal means of attaining some sort of wealth values by any specific government. Sure, I’m not exactly knowing which government would condone or not condone the usages of the crypto currencies, but I’m seeing that the people of the world are using them as we speak. Or else how they’re becoming valuable as we speak? Of course, in the future, we won’t know which crypto currency would survive as complementary currency to the government back currencies, but as we speak there are more than one crypto currencies in play. If you check out cryptsy.com, you will see people are trading in dozens of different crypto currencies. For me, only Bitcoin and Quark caught my eyes. Why these two? Well, Bitcoin was the very first of its kind and its value per Bitcoin has no rival as we speak. Quark on the other hand is being suggested by its developers that it’s more secure than Bitcoin and all other crypto currencies, therefore I think it might have better chance in surviving the crypto currency madness if the crypto currency venue is here to stay.

Am I supporting and condoning the usage of crypto currencies such as Bitcoin and Quark? Look guys, I’m a nobody, therefore even if I say Bitcoin and Quark and other crypto currencies are the way to go, nobody will care. Nonetheless, if you are insisting that I should make it clear, to be honest let me say I don’t have a clue. I can’t really condone or suggest that you should use these crypto currencies since I don’t have a clue. Furthermore, these crypto currencies carry risks. What risks? Let see, you never know that these crypto currencies might just be a trend of fads, therefore one day people will think them just as funny money. You know, like how you play with those funny monopoly money in the monopoly board game? Nonetheless, to be honest with you, I’m currently owning some crypto currencies. At first I owned around 0.10 of Bitcoin, and then I converted 0.10 of a Bitcoin into Quarks. Now I have a lot of Quarks.

Regardless of my supporting for crypto currencies or not, let just say that if one day the crypto currencies suddenly become useless, don’t say that I push you into believing in crypto currencies. As I had said, I’m pretty clueless about the future of crypto currencies as you are. Nonetheless, what I know is that these crypto currencies have made some people really wealthy as we speak. Furthermore, nobody knows the legal status of these crypto currencies in the future.

With the whatever I had spewed on crypto currencies, especially about Bitcoin and Quark is out of the way. Let me show you how to mine Bitcoin and attaining Quark, OK?

  • At this rate, Bitcoin is way too hard to mine, and might not be profitable at all, but if you insist, you can still mine them. Before mining Bitcoin, you must have a Bitcoin wallet first. Like the one that I’m going to open up now. (Opening up Bitcoin wallet!) — By the way, don’t download Bitcoin wallet in dangerous, unknown websites, because you might download computer viruses and malware and not of Bitcoin wallet. Please go to the official source for Bitcoin to download your Bitcoin wallet.
  • After you have a Bitcoin wallet, you can choose to create a passphrase to encrypt and protect your Bitcoin wallet and so whoever has physical access to your computer or is able to hack into your computer cannot steal your Bitcoins. Of course, once you forget the passphrase somehow, you will forever lose your Bitcoins in the Bitcoin wallet. Therefore, some people might just use the Bitcoin wallet as it is and not encrypt the Bitcoin wallet with a passphrase. It’s really up to you. Nonetheless, I chose to encrypt my Bitcoin wallet with a passphrase. (Show them how to encrypt Bitcoin wallet with a passphrase.)
  • With Bitcoin wallet in hand, you can now create a public Bitcoin address to receive Bitcoins. This means, you can also send the Bitcoins that you mine to a public Bitcoin address that you create for Bitcoin mining purpose. (Show them how to create Bitcoin’s public address with Bitcoin wallet.)
  • Now, you need a software which will allow you to mine Bitcoins. I have heard of Bitminter, bfgminer, cgminer, and guiminer. If you are so new to the mining of Bitcoins, then I think guiminer and Bitminter would be the easiest software for you to mine Bitcoins. Please, once again, look around and ask around for how to download these software safely, because if you’re downloading these Bitcoin mining software at unknown, not trustworthy sources, you might download computer viruses and malware and not of Bitcoin mining software.
  • Before you can even mine for Bitcoins with a Bitcoin mining software, you need to create an account with a Bitcoin pool. There are so many Bitcoin pools out there that you can sign up an account with. What is Bitcoin pool? Well, let just say that you can use a Bitcoin mining software to mine Bitcoin by yourself, but this may take years if not hundreds of years for you to be able to mine any Bitcoin. It’s all about Bitcoin encryption/math difficulty levels. Don’t ask me the underlying understanding of it all, because I’m pretty much clueless about the calculation of Bitcoin difficulty levels. Nonetheless, just to scratch the surface, Bitcoin difficulty levels increase by day as we speak, and to a point of a future that the difficulty levels get so high that mining for more Bitcoins would be impossible, even if you have really really powerful Bitcoin mining hardware. With Bitcoin pools, you can basically create a Bitcoin pool worker, entering the Bitcoin pool worker’s password and username into Bitcoin mining software to allow the Bitcoin mining software to mine for Bitcoin in a Bitcoin pool. This way, whatever electricity and hardware costs that you contribute to the Bitcoin pool will count toward the earning of a Bitcoin. Of course, each Bitcoin pool host will either charge a fee or not for allowing you to mine Bitcoin with a Bitcoin pool. So, you must look up for a good Bitcoin pool that is appropriate for your Bitcoin mining needs before you join such a Bitcoin pool. By the way, when the Bitcoin mining software asks for a worker’s password, it’s not a password of your Bitcoin pool’s account, but it’s a password of a Bitcoin’s pool worker that you had created. I hope that is clear enough so you won’t be entering a password of a Bitcoin pool account into a Bitcoin mining software. (Opening up Bitminter or guiminer to show how a Bitcoin mining software might work.)
  • Before to mine Bitcoin for real with a Bitcoin mining software, you need to create a Bitcoin public address. Once you have a Bitcoin public address for mining, you need to log into a Bitcoin pool’s website to add the Bitcoin public address that you had created for Bitcoin mining into your Bitcoin pool’s account. How to do this? Well, you have to look this up as each Bitcoin pool website might behave differently. Once you have linked the Bitcoin public address of your Bitcoin wallet to a Bitcoin pool’s account through the Bitcoin pool’s website, then you can begin to fire up your Bitcoin mining software to mine for Bitcoins.
  • At a current 700 million plus or so Bitcoin difficulty level (to be exact, as I’m speaking the Bitcoin difficult level is at 707,408,283), and this difficulty level will rise soon or later, mining Bitcoin with a latest, powerful graphic card will be very unwise, because you won’t be able to generate any worthy amount of hash to count toward your Bitcoin pool’s contribution, therefore you will waste a lot of in home electricity and electricity costs and yet you won’t be able to generate any worthy fraction worth of a Bitcoin. This is why many Bitcoin miners are using special Bitcoin hardware they have bought at specialized Bitcoin hardware dealers such as Butterfly Labs. Nonetheless, these specialized Bitcoin hardware are super expensive, and you might not even make enough return to cover the costs for these specialized Bitcoin hardware. The cheapest way to mine for Bitcoins is still about acquiring a specialized Bitcoin hardware known as ASICMiner Block Erupter USB 330MH/s. As you can see in the title of this specialized hardware, each ASICMiner Block Erupter can generate around 330 Mega Hash per second, and this is probably on the par with the latest, most powerful graphic card yet. It’s the cheapest solution since you can purchase them on Amazon and Ebay for around $46 to $75 bucks for each. A single latest, most powerful graphic card might cost up to $1000 per graphic card. Once you string a bunch of ASICMiner Block Erupter together on a powered USB hub, you can increase your hash rate by a lot. This way, you can generate a lot more hash contribution toward a mining pool and earn bigger fraction worth of a Bitcoin when the pool pays you for your mining effort. By the way, you must look for more information on how to use those ASICMiner Block Erupter USB thumbs with your Bitcoin mining software OK? I have heard that some suggest you have to download special driver for them if you are going to use them with bfgminer. With Bitminter, you may not have to download any special driver, but I’m not sure if it’s the case. Anyhow, things might change as we’re moving forward, and so it means the software might get develop differently and these ASICMiner Block Erupter thumbs might be outdated, therefore mining with them might not be feasible. Furthermore, the difficulty levels of Bitcoin mining might rise so high that mining with these ASICMiner Block Erupter might just be unwise. I guess it’s all depending on the situation you’re in when it comes down to mining for Bitcoin. Do what you can if you’re so into this whole idea of mining for Bitcoins, but don’t overdo anything or else you are at risk of losing money and health. So, be wise and careful. If you think this is not worthy of anything, please don’t mine for Bitcoin at all. If you don’t like or trust Bitcoin at all, stay away from this whole Bitcoin gambit OK? Just focus on your wellbeing.

Now, let me talk about Quark. To tell you the truth, I don’t know how to mine Quark at all, because I haven’t read into it enough. Nonetheless, what I have heard is that Quark is about 97% mined already, therefore you can only mine about 1% a year of Quark in total. So, I won’t talk about mining Quark, but how to get Quark. To get Quark, what I did was created an account with a crypto currency exchange known as cryptsy.com, and then this crypto currency exchange allows me to use my Bitcoin to purchase for Quark. That is how I get to own some Quarks. Before I can even own some Quarks, it’s obviously I have to download a Quark wallet. Like before, you must be very careful of where you download these software, because you might download computer viruses and malware from unknown sources. I think I downloaded from the official source and I had use antivirus scanner to scan the Quark wallet before I think that it’s a safe software to use. Anyhow, just like how Bitcoin wallet is being used, a Quark wallet allows me to create Quark public address. With a Quark public address is made known to a crypto currency exchange, I can then withdraw my Quarks from a crypto currency exchange and store the Quarks in my Quark wallet. Of course, you can also leave your Quarks inside a crypto currency exchange account if you decide to do such a thing. Nonetheless, I prefer my Quarks to be physically near me, because I never know a crypto currency exchange might be down or go out of business. You can also use your Quark wallet to pay for whatever in Quarks just like how you would use a Bitcoin wallet. Sending Quarks to a crypto currency exchange is also requiring you to send your Quarks out of your Quark wallet to a known Quark public address that a crypto currency exchange had generated specifically for you.

In summary, crypto currencies are very intriguing, but the future of them all is still remaining to be seen. This is why I think you should approach this whole thing with care, otherwise you will be at risks of losing money and your happiness, consequentially your wellbeing. I think if you don’t trust crypto currencies at all, then you should stay away from them. Now if you want to test the water, then just play with them but not taking them too seriously. For me personally, I’m still playing around with these crypto currencies, but the two crypto currencies I interest in most are Bitcoin and Quark. I hope my talk on Bitcoin and Quark actually helps clear up some curious questions that you have about Bitcoin and Quark and crypto currencies in general.

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One response

  1. Pingback: What will replace bitcoin? « LunaticTrader

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