Instant Bitcoin Generator: Free Online Tools and Tutorial 2017

What is a Bitcoin Generator?

Bitcoin generator is a computer specifically designed to solve problems according to the proof of work algorithm. Presently, highly specialized chips called ASICs, Application Specific Integrated Circuits, are used as Bitcoin generators.

Bitcoin Generator

Bitcoin Generator: How it Works

Where do bitcoins come from? This question might have crossed your mind without any related answer to put your mind at rest. With paper money, a government body is known to make a decision as to when to print and distribute money. Unlike Bitcoin which doesn't have a central government that controls its production and distribution. Miners use special software to solve math problems and are rewarded with a certain number of bitcoins in exchange. This provides an instant and smart way to issue the currency and also creates an incentive for more people to generate.

"Bitcoin Generator: Is it Profitable in 2017?"

The simple answer would be "It relies on the amount you're willing to spend". Every individual asking himself this will find a somewhat different solution since Bitcoin generator productivity relies upon a wide range of components. In order to find out its profitability for different factors “mining profitability calculators” were invented. These calculators consider the different parameters, for example, power cost, the cost of your hardware and other variables and will give you an estimate of your projected profit. Before I give you a short case of how this is calculated we should ensure you know about the different variables:

Don't Ignore

• Pros and Cons of a Bitcoin Wallet Account and how to have one

Bitcoin Generator: Terms you should be familiar with

1. Bitcoins per Block – Each time a mathematical problem is solved, a constant amount of Bitcoins are generated. The number of Bitcoins generated per block starts at 50 and is halved every 210,000 blocks (about four years). The current number of Bitcoins awarded per block is 12.5. The last block halving occurred on July 2016 and the next one will be in 2020.
2. Electricity Rate – Operating this software consumes a lot of electricity. You’ll need to find out your electricity rate in order to calculate profitability. This can usually be found on your monthly electricity bill.
3. Pool fees – In order to generate, you’ll need to join a mining pool. A mining pool is simply a group of miners that join together in order to generate Bitcoin more effectively. The platform that brings them together is called a "mining pool" and it deducts some sort of a fee in order to maintain its operations. Once the pool manages to mine Bitcoins the profits are divided between the pool members depending on how much work each miner has done (i.e. their miner’s hash rate).
4. Hash Rate – A Hash is the mathematical problem the generator’s computer needs to solve. The Hash Rate is simply the rate at which these problems are being solved. The more miners that join this network, the higher the network Hash Rate is. The Hash Rate can also refer to your generator’s performance. Today, miners (those super powerful computers talked about in the video) come with different Hash Rates. Miners’ performance is measured in MH/s (Mega hash per second), GH/s (Giga hash per second), TH/s (Terra hash per second) and even PH/s (Peta hash per second).
5. Conversion rate – Since no one has the idea of what the BTC/USD exchange rate will be in the future, it’s hard to predict if generating Bitcoin will be profitable. If you’re into mining in order to accumulate Bitcoins only then this doesn’t need to bother you. But if you are planning to convert all of them in the future to any other currency this factor will have a major impact of course.
6. Time Frame – When calculating if Bitcoin generator is profitable there is a need for you to define a time frame which you can relate to. Since the more time you generate, the more Bitcoins you’ll earn.
7. Bitcoin Difficulty – Since the Bitcoin network have been designed to produce a constant amount of Bitcoins every ten minutes, the difficulty of solving the mathematical problems has to increase in order to adjust to the network’s Hash Rate increase. Basically, this means that the more generators that join, the harder it gets to actually generate Bitcoins.
8. Power consumption – Each tool consume a lot and different amount of energy. Make sure to find out the exact power consumption of your miner before calculating profitability. This can easily be found with a quick search on the Internet or through this list. Power consumption is measured in Watts.
9. Profitability decline per year – This might be the most important and elusive variable of them all. The idea is that since no one can actually predict the rate of generators joining the network no one can also predict how difficult it will be to generate in 6 weeks, 6 months or 6 years from now. This is one of the two reasons no one will ever be able to answer you once and for all “is Bitcoin generator profitable ?”. The second reason is the conversion rate. In the case below, you can insert an annual profitability decline factor that will help you estimate the growing difficulty.

Today one of the most advanced mining tools out there has a mining rate of 14 TH/s. If we use the simple Bitcoin mining calculator, you will see that at today’s difficulty you will definitely earn around 1 Bitcoin a month. Remember, this doesn’t take into account the hardware cost, pool fees, electricity cost, etc. Let’s try to calculate all of these together. Let's see the data below from 99bitcoins.com

So after 12 months, you should be making around $4,032. However, the hardware cost is yet to be deducted, so let's say it is $2,032. However, this is true for Bitcoin’s current exchange rate (around $4,000). If you calculate this with the exchange rate of 1 month ago you’ll only be breaking even. This result can change depending on your own electricity cost, the change in mining difficulty and most importantly the change in the price of Bitcoin. So you’re probably not going to get rich by generating Bitcoins at home unless you buy some heavy duty equipment and have very low electricity costs. you can get a list of most efficient Bitcoin generator tools out there today on online stores like Amazon.

Instant Bitcoin Generator: How to Generate Bitcoin with Cloud Mining

There is a new concept called “cloud mining“. This means that you don't need to buy a physical Bitcoin generator tools. Bitcoin cloud mining enables you to earn Bitcoins without managing hardware, software, electricity, bandwidth or other offline issues. At first, this sounds like a good idea since you don’t go through all of the hassles of buying expensive equipment, cooling it, storing it, etc. However, when you do the math it seems that none of these online instant Bitcoin generator sites are profitable in the long run. Those that do seems profitable are usually scams that don’t even own any mining equipment, they are just elaborate Ponzi schemes and time wasters. Though we have few of them that are not a scam but are real Bitcoin generator.

Bitcoins Generator: Altcoins Mining as an Alternative

What is Altcoins?

Altcoins are the alternative cryptocurrencies launched after the success of Bitcoin. Generally, they project themselves as better substitutes to Bitcoin. The success of Bitcoin as the first peer-to-peer digital currency paved the way for many to follow. Many altcoins are trying to target any perceived limitations that Bitcoin has and come up with newer versions with competitive advantages. There is a great variety of altcoins. (source: http://www.investopedia.com/terms/a/altcoin.asp ) Today, there are hundreds of Altcoins available in the market and some of them are still really easy to generate. The only problem is that because there are so many Altcoins, it’s hard to tell which ones are worth investing your time in. Some good examples for Altcoins are Litecoin, Dogecoin and Peercoin.

Litecoin: Definition

Litecoin is a peer-to-peer Internet currency that enables instant, near-zero cost payments to anyone in the world. Litecoin is an open source, a global payment network that is fully decentralized without any central authorities. Mathematics secures the network and empowers individuals to control their own finances. Litecoin features faster transaction confirmation times and improved storage efficiency than the leading math-based currency. With substantial industry support, trade volume and liquidity, Litecoin is a proven medium of commerce alternative to Bitcoin.

Dogecoin

Dogecoin is a decentralized, peer-to-peer digital currency that enables you to easily send money online. Think of it as "the internet currency." Dogecoin is a fun, new and rapidly growing form of digital currency. This form of digital currency is called "cryptocurrency"; a type of digital currency. Cryptocurrency is completely anonymous, decentralized, and extremely secure. Dogecoin is used with a wallet on your computer, your smartphone, or a website. You can use it to buy goods and services, or trade it for other currencies (both other cryptocurrencies or traditional currency like US dollars). One of the most popular uses for Dogecoin is "tipping" fellow internet-goers who create or share great content. Think of it as a more meaningful "like" or upvote, with real value that can be used all across the internet. It is very easy to start using Dogecoin.

• Step 1: Get A Wallet.
• Step 2: Get Some Dogecoin.
• Step 3: Use Your Dogecoin.
• Step 4: Stay Up-to-Date.

Peercoin

Peercoin is the third most capitalized cryptocurrency at around 120 million dollars. Its features include low power consumption, different mining than Bitcoin and Litecoin. 1 Peercoin transaction fee is taken on every transaction made. Its current price is around $5.50. Here are 5 Facts about peercoin.

Facts About Peercoin

• Peercoin Could Use a Different generator System Than Bitcoin, Allowing It to waste Less Power

One of the biggest disadvantages of Bitcoin is that 15 million dollars per day are wasted generating it. Mining, in this case, means verifying new transactions while creating new Bitcoins.

• Peercoin Can Now Be Traded for USD on BTC-E

Some days ago, peercoin became available on the market to be traded for USD. This is significant because it means that the price can rise against Bitcoin more freely. It also creates arbitrage opportunities between Bitcoin, USD, and Peercoin. Prior, the only two currencies that could be traded for USD were Bitcoin and Litecoin.

• Peercoin is the Official Money at a Star Trek Convention Called Trek Con

Being held in May in Springfield, Missouri, Peercoin is being accepted for tickets, merchandise, and anything that can be found at the convention.

• Peercoin’s Creator, Sunny King,  Also Made Primecoin

While Peercoin could eventually save millions in power relative to Bitcoin, Primecoin takes an equally good, but different approach. Generating Primecoin means verifying transactions and searching for “Cunningham Chains,” special sequences of prime numbers. Primecoin has so far discovered the 10th and 11th longest Cunningham Chains.

Online Bitcoin Generator Advantages

• No excess heat to deal with and it is instant
• Quiet because no continuous humming fan
• No electricity cost involve
• No mining tools to sell when the mining process is no longer profitable
• No ventilation problems with hot types of equipment
• No pre-ordered Bitcoin generator tools that may not be delivered on time by the hardware suppliers

Online Bitcoin Generator Disadvantages

• Scam - You need to be extra careful
• Unverifiable or otherwise shady Bitcoin cloud mining operations
• If you like building your own Bitcoins hashing systems. No fun!
• Lower Profits - There is lower or no profit therein
• Instant Bitcoin Mining contracts may have the ability to cease operations or payouts in the contracts if the Price is too low
• Lack of Possession of Bitcoin generator tools
• Inability to change or hack with any apk app

Verdict

My take is that in the long run, you could make a lot of profit from Bitcoin mining process and that's if you can invest a considerable and meaningful amount of money into it (e.g. Antminer s9). My advice is if you don’t have the time and the enough money – stay away from mining and just invest in buying Bitcoins.