On this very day ten years ago, the elusive Satoshi Nakamoto released a document that would change the world forever: Bitcoin - A peer-to-peer electronic cash system. Without a doubt, Bitcoin and the blockchain data structure have become one of the most important innovations in computer since the dawn of the internet. So, in honor of Bitcoin's tenth anniversary, I'd like to share a few personal anecdotes: How I first got involved with Bitcoin, my various ventures, and how I've seen it grow from a strange little hobby to a worldwide profession. I'll even share a few tips along the way!
So, my journey with bitcoin began WAY back in 2011, or thereabouts. At the time, the coin was only $20 a piece. There wasn't a such thing as an "altcoin" nor was it as easy as it was today to get ahold of some. Mt Gox was the largest trading platform at the time; and VERY few people understood how the technology worked. But we all knew something: It's going to be HUGE. I first heard of it while discussing payment for an old Unix 3B2 computer that SDF/LoneStar was going to sell me. I saw this long string of letters and numbers, and wondered what the hell this "bitcoin address" meant. It took me a little while to understand this was a payment system and not some kind of computer network utility... I was already hooked! I soon put an ad out on some defunct bitcoin classifieds site offering my own Linux/Cray X-MP emulator computer for VPS purposes for 1 BTC a pop. I called it "supercomputer access" (which it technically was...) and managed to get a whole bitcoin! More on that later... So within just a few weeks, bitcoin became a HUGE part of my life. An obsession really! I've spent hours exploring the blockchain, looking at what people are doing with them, and how I can get my own besides selling out my computer's time. I remember at one point I collected coca cola bottlecaps and hoped to sell them for some coin - 50 codes for one BTC at the time sounded perfectly reasonable!
But if completely unregulated payments and transparent transactions weren't cool enough, I soon found out the coolest feature I've ever seen: You can put your computer to work and earn bitcoin. You can MINE bitcoin! At the time, the concept seemed far-fetched and too good to be true... But I'm a person of experimentation. And yet again, bitcoin blew me away.
Back in my day, bitcoin mining was done on GPU setups - 100 MH/s (not TH/s, not even GH/s) was considered a great mining speed. I remember going to a computer store and discreetly opening up web mining sites on all the Mac and gaming PC's... think I pulled off 0.001 BTC before they caught on or shut them down for the night. Now at the time, money was too tight to set up my own mining rig; But in that time, I spent countless hours gushing over amazing GPU mining setups... I even remember looking at a massive Radeon card rig that pulled in over ONE GIGAHASH of mining power! Incredible for the time... Correct me if I'm wrong, but I think it was the same rig that had a massive cooling setup of pipes that went out to the operator's pool in his backyard. To this day, I still find it absolutely incredible that it's entirely possible to set up a supercomputer that makes money for you. It's probably the most exciting thing of bitcoin in my humble opinion.
So, as the days went by, bitcoin was evolving at an incredible rate. Even after the infamous fall of Mt Gox, people didn't lose faith; progress marched forward. I remember sitting in my biology class doodling a SHA256 pipeline-based mining computer that could be made from TTL chips. I remember sitting in the school's library reading about Namecoin, and later Litecoin, the very first of many altcoins. Two key points here: It would quickly show that I wasn't the only one dreaming of a dedicated hardware mining computer. What I doodled, and what others have implemented, would become ASIC miners. Altcoins, I initially thought, wouldn't survive, but were interesting to see how they're different from bitcoin... But if it's one thing I've learned, and my first tip for you: You MUST get in as early on as possible if you'd like to make some serious money in this game. Whether it's an ICO or a new technology, the earlier you're in, the better. I'll be sharing a few more tips on that in a later article. But, again, I reiterate: Get in as early as you can.
Believe it or not, I was actually able to afford a mining ASIC. After extensive research in price versus performance, comparing ebay prices and calculating estimated earnings, I figured a dollar a day would be enough to enjoy the mining experience... And MAN is mining an experience! I eventually found a seller of a GAWminers War Machine. It was a BEAST! Take a minute and check this out.
Four colossal fans, TWO power supply hookups... If I remember correctly, this rig took TWO 1KW Gold-rated power supplies! In its day, this machine was an absolute power house. It did 54 MH/s in Scrypt - mining litecoins and others like it. At the time, I lived south of Atlanta in a small home. After testing it out at a friend's and leaving it in her closet for a day, we both quickly realized the challenge of running them. It probably melted some of her sweaters with how much heat it put out. Still, even after bringing it home and only being able to sleep comfortably if I wasn't wearing anything, it was worth it to me. To hear those massive fans whirring and watching each accepted share roll across my netbook (which acted as the controller) was totally worth the trouble. I regret selling it; but at least I have the experience I can share with you all!
That brings me to my second tip: Mining is, and always will be worth the trouble. Look for ASIC systems that bring in a dollar a day or more, find a way to power it, and put it somewhere where the heat won't bother you. The cooling fans are usually pretty loud; so if you're not like me and enjoy the powerful sounds, you could probably get away with some heating duct hoses that push the air out through a window or something similar... But up in the midwest, it's a great idea for a space heater!
To wrap this long anecdote up: A short passage on a new technology I knew was as great as bitcoin: Ethereum. Not only was it a new blockchain with an ASIC-proof mining algorithm... But you could write PROGRAMS for the blockchain! It was such an incredible feature to see implemented. We now have a worldwide virtual computer anyone can access, and there have been SO many amazing applications built with it. You can even create your own coins and tokens with it! Quite liberating, in so many new and innovating ways! I was involved with it a year before they launched; I set up a dedicated ethereum computer (asrock pro btc, celeron CPU, 4GB RAM, and an R9 280X GPU) well-ahead of time to make sure I'd be ready. And on that faithful day (now a personal holiday) on July 29th, 2015: the genesis block was released. I quite literally hit the ground running on DAY ONE mining and supporting the growing network. It was pretty profitable too; I think I pulled in around $7 a day at 20 MH/s... Even after my hiatus, man, I was back in the game, and once again enjoying the mining experience.
In just ten years, I've seen bitcoin grow from a weird hobby among a small group of dedicated geeks to a massive worldwide profession. I've witnessed the rise of ASIC systems; the many wild-west heists and scams, and most importantly: I've watched it grow from $20 a coin to nearly $20,000. I regret selling instead of holding; but that's a hard lesson I've learned. I've watched projects and altcoins come and go; But if there's one thing I know for certain, it's that bitcoin is here to stay. There's always money to be made with it, whether it's trading, mining, selling things or services, or whatever your imagination can conjure. And so, the final tip for my readers:
Keep calm, and HOLD ON FOR DEAR LIFE!