What is CPU Crypto Mining and Is it Profitable?

Since the release of Crypto Jacker I’ve had a lot of questions about crypto mining and the various CPU miners out there so I figured I would write a post about it. Cryptocurrency of course is digital currency like bitcoin only their are many other alt coins. I’m unable to judge the solvency of any investment there is risk associated with any investment advice.

While there are over 1,200 crypto-currencies and none are on the market some could be viewed as “penny stocks”. However others like bitcoin have significant market capital, meaning there is billions of dollars invested in them. The top 10 crypto-coins have a market capital in the billions.

Many forms of altcoin and bitcoin itself are “mineable”. This means the amount of currency in circulation when coin is first offered is not the final amount that will be available when it’s completely circulated. According to Blockchain.info there are currently 16.8 million bitcoins in circulation of the total 21 million that will be released. If you own a bitcoin miner you could potentially get free bitcoin if you solve the blocks that release them. After the full 21 million are circulated miners will be rewarded for solving algorithms related to transaction fees.

Mining bitcoin requires an ASIC graphics card. This type of equipment can be expensive to invest in and it goes up as the value as bitcoin increases. Other currencies are mineable with various graphics cards or CPU power. Some people choose to mine altcoin using both CPU and GPU power simultaneously on different devices. Currently only one of the major altcoins can be mined using browser mining which is what cryptojacker is based on. This coin (monero) currently has a market capital of nearly $5 billion dollars. It can be exchanged for bitcoin, which I explain how to do in the members area. You can find more information about monero mining @ this redditThe CEO of McAfee announced today that he backs Monero and other related privacy currencies.

What makes Monero fully anonymous is that wallet users do not have any personal details tied to their accounts. You don’t even create a username and password making it even harder to trace, or hack, as many have tried to do with other currencies. There are also other factors involved making it attractive to investors interested in security and anonymity.

Monero CPU Mining Software

Here are a few Monero CPU mining softwares available free on github:

https://github.com/lucasjones/cpuminer-multi/releases

https://github.com/xmrig/xmrig/releases

(They typically charge 1-3% of mining profits to cover development fees)

Of course if you can afford the investment you should check out GPU mining but that ‘s for another topic. CPU mining is much easier and more approachable for many. It’s also available on a larger array of computers given that you don’t need specific graphics cards. There are miners optimized for specific processors that may be more optimal and switching to different mining pools could give you greater gains.

Finally, there’s the option for cloud based mining which is effective for many crypto currencies such as monero, ethereum, litecoin and bitcoin.

Check out: Bitcoin Miner Host. If you go this route you can calculate your earnings using this mining calculator. Are you interesting in crypto-mining or actively doing it right now? Comment below and let me know you’re interested and I’ll keep writing about it! I’m giving away 5 free copies of Crypto Jacker to people who comment on this blog soon!

19 thoughts on “What is CPU Crypto Mining and Is it Profitable?

  1. Damon

    Very interesting info Thomas!

    I knew a little bit about bitcoin but it’s been almost 2 years since I looked at it. Thanks for the insight on Monero. This is now peaking my interest.

  2. Brian

    Crypto mining has been an idea that never came into reality for me. I assumed it would require too much CPU power to get any return and that it would require more time and money than the return. Who has actually written about their success in mining currencies? It would be a good time to see what I may have missed!

  3. Thomas Witek Post author

    Ahh Brian that’s the exact idea behind it. Your costs in power consumption and hardware vs your return in mined profits and the growth of the currency. With the value of cryptocurrencies going up some altcoins are becoming more and more feasible to mine profitably. Here’s the mining profitability calculator for monero the cryptocurrency mined by Crypto Jacker: https://whattomine.com/coins/101-xmr-cryptonight

  4. Jorge Goulden

    I agree for the most part with Bitcoin and being anonymous but another alternative much more secure is Ripple XRP. Because of its secure system and the ability to process payments faster for each transaction made… such as 1500 transaction per second versus Bitcoin’s 7 transaction per second, the obvious winner would be XRP and many large banks are climbing onboard meaning XRP may be the cryptocurrency to watch out for for 2018.

    1. Thomas Witek Post author

      Jorge, thanks for the recommendation! If anyone else has any suggestions for cryptocurrency mining or investing feel free to leave a comment. It can’t hurt to look out for the next big breakout and 2018 is the year for it to happen!

    1. Thomas Witek Post author

      Hi Eddie, I think a hardware wallet might be too much. I saw an article about a guy that nearly lost his bitcoin worth around $100k at the time because he couldn’t find the password to it. It’s kind of a gimmick right? Now if you have a large sum of cryptocurrency you might want to keep it in a “paper wallet” on a computer that’s not hooked up to the internet. These are really good questions. According to coinhive if 10 people stay on your site for extended periods of time you can expect $30 USD per month. Obviously crypto jacker opens that up significantly since you can share all types of links in all kinds of places. I recommend sharing things that people spend a lot of time reading. Long articles with lots of comments, viral sites, movie site, game sites (although be careful if they use a lot of processing power). I’ve throttled CJ for this reason, it’s a very exciting time to experiment cheers!

  5. Gabriele

    This definitely is a great topic. What is your experience with ppl and the “locker”? Does a mining take place, if I click on my own link?
    Keep it comming Thomas…Very interesting….

  6. rob

    Have not followed the bitcoin craze that much, but have read that selling bitcoins is difficult in the way that penny stocks are hard to sell -not a liquid market. What are your thoughts or experiences with this?

  7. rob

    Also when I go to a page that I assume you have Crypto jacker on, my avg says threat secured -safely aborted connection on coinhive.com because it was infected with JS:Miner-C[Trj]

    1. Thomas Witek Post author

      No there was no crypto jacker on the sales page. I put a demo of crypto locker which is just a bonus plugin and it uses the old script for the miner. That was triggering people’s virus detection. You’re just going to make mistakes every launch and some people in the JV Zoo community are going to capitalize on it. That’s all it is.

      The original coinhive miner will show up on virus detection. Crypto Jacker has two other options for the miner and we may add a 3rd later. It sounds like this was a concern for many people so I removed that demo. As far as the miners go they are staying ahead of virus detection and look up the virus guy approves monero!

      To answer your other comment Rob, no it’s not hard to sell bitcoins. Again, there is always going to be people looking at the negative side of everything. People with bitcoin have no reason to complain!

  8. Tom Neuman

    I’ve had an interest in Bitcoin, but hadn’t really considered mining. I read that much of the mining happens in China because of extremely cheap electricity costs, among a few other factors. I guess with rising Bitcoin prices, it probably becomes more cost-effective to mine them despite the somewhat higher electricity prices in the US.

  9. Jim Pines

    Thanks for the informative article, Thomas. I’ve heard a lot about Bitcoin and other crypto-currencies, but not as much about mining them. Will need to look into it a bit more, this was a good starting point.
    – Jim

  10. Alex

    I am a part-time cryptocurrency trader and this software sounds interesting. I would like to take a further look at this. 🙂

  11. David Webb

    F-Secure picked up a threat from the Miner, isolated it, and prevented it from running. This text was included in the display dialogue: “Some malwares include miners as part of their payload; in such cases, the malware is hijacking a user’s computer to create cryptocurrency units for the malware author’s benefit.”

    1. Thomas Witek Post author

      Hi David, which miner coinhive? Yes, this is picked up by many anti-virus programs but I included it anyway because I believe they will upgrade it like crypto-loot to avoid detection. They were targeted because they were first. But you still have two other options to avoid adblockers and malware in Crypto Jacker which I can confirm are working fine. This certainly isn’t a show stopper. No big deal really I knew that going in and I knew there were ways around it. I might remove coinhive if they don’t update it soon.

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