what's up guys today we're going to discuss something that I'm kind of surprised I haven't talked about on here yet which is how to mine Monero as well as why you should start mining it in fact let's start with the why because that's the most important thing you should mine Monero be because it is the fairest cryptocurrency that you could be mining one of the things that makes different cryptocurrencies well different from one another is the algorithms that you must run in order to mine them as well as the consensus model is it a proof of work or a proof of state cryptocurrency but of course proof of work is still the most popular one but there's a serious centralization problem that occurs when a proof of work algorithm is too simple simple algorithms end up with application specific integrated circuits or Asics being designed to perform them very very well now Asics are much older than cryptocurrencies are and they're used in many places like a web server might have an Asic built into it that only performs SSL encryptions so it's going to take that very repetitive task away from the web server CPU but in the Crypt cryptocurrency world having an Asic is about as close as you can get to having a money printer a machine that was specifically designed to run the algorithms that mine those blocks on the blockchain now the reason that Asics centralized cryptocurrency mining is because they are so much more efficient at mining compared to gpus and CPUs the people with these Asics pretty much end up controlling the blockchain I mean consumer Hardware just cannot compete with these things and so the Asic miners are getting almost all of the block rewards while the people with regular Hardware at home are getting nothing and of course there's not a lot of people out there that are willing to spend several thousand dollars on a machine that's just able to do one algorithm very quickly so what happens is the people who can afford these Asics they end up not just getting one or two they end up getting a whole bunch of them which further centralizes this mining operation and then when you start to consider that pretty much all of the Asics that are being built in order to mine cryptocurrencies like Bitcoin are being made in China and the manufacturers often like to use these A6 to mine some Bitcoin for themselves before they ship it out to you now you start to see the picture of centralization it starts to become very clear the Asic manufacturers and the people that are using them have a tremendous control over these different networks and of course Asics further exacerbate the E-Waste problem that All Electronics contribute to but they contribute to it a lot more because there's no way to repurpose an Asic so once it dies or once a more efficient one is built they just go right in the trash which is where monero's random X algorithm comes in this is the algorithm for mining Monero which is based on the execution of random code and other memory heavy techniques and because of this Monero cannot be mined by A6 and it's actually even more efficient to my Monero with CPUs than with graphics cards so no need to upset all of the gamers and this also means that Monero can be mined with pretty much any kind of consumer Hardware because everything's going to have a CPU in it and one last thing that I want to talk about before I get into how to mine is monero's tail emission so a steady amount of 0. 6 Monero is rewarded per block that is mined and this is going to give the miners of Monero a steady incentive to keep on mining it and this also helps to keep the trend transaction fees low for the users of Monero which of course helps with adoption because no one wants to use a cryptocurrency with high fees and I really think that this is a much better block reward model than what Bitcoin has where the block reward gets cut in half about once every four years and it seems to cause a bit of disruption every time this happens because now miners are earning half as much and eventually the block reward is going to go to zero in bitcoin's network which could bring some very high transaction fees since that's the only way that miners can actually earn anything with it so the job of being a Monero Miner is one that looks like it's going to be a quite steady one for the foreseeable future so let's get into the process now now there's a few things you're going to need a computer and an internet connection of course but you're also going to need a Monero wallet to receive leave those funds to now I recommend using the official Monero GUI wallet from getmanero. org or you can use the command line wallet it's around here somewhere oh yeah here it is so you can use the CLI wallet if you're a cool hacker man because really all you need is this wallet address and we're going to plug that into another program but I'll go ahead and walk you through the process for setting this up now when you first run the Monero GUI wallet you'll be brought to the screen go ahead and choose your language here now for the mode selection I'm going to go ahead and do the simple mode just so that I can get a wallet address to show you guys how to mine but if you're actually going to be using Monero and Mining Monero on the regular then do the simple mode bootstrap so that it's going to download the blockchain to your computer that's going to help keep things more decentralized and give you better privacy and they also give you a warning here about simple mode you know that you're going to be using a third-party server that has the blockchain on it so we'll go ahead and create a new wallet and we'll just go ahead and call it Kenny and this is our recovery phrase for the wallet so this is very important for you to write down and also make sure that nobody sees it because with this anybody is able to access your wallet and access your funds so I guess this is technically going to be our wallet now all right once we've got that written down we can go to next and it's going to ask us to fill some of these words in to make sure that we really really got everything right and of course make multiple backups back this up make sure they're safe backups where no one's going to be able to access it and then we're going to set a password it's also important to make sure this is a good password and and make sure that you write the password down to of course but most important thing is the seed because even if you forget the password you can just restore the wallet with the seed and the password is going to be gone so we'll go ahead and create a wallet and then we got to enter that password again all right and now we have our wallet so we just copy that to the clipboard and then you can see what this wallet address is but this is what we're going to be using later of course yours is going to be different than mine now the software that we're going to use to actually mine Monero is called XM rig and it's available at xmrigged.
com it is free and open source and it is available for different platforms Windows Ubuntu Linux Mac OS and freebst so go ahead and select the option for your platform and you don't need the Cuda plugins or anything like that that's just so that you can mine Monero with a graphics card but like I said earlier it's much more efficient to mine Monero with a CPU even if you've got a really crappy CPU paired with like a 4090 like an RTX 4090 chances are you're going to get a better hash rate with that CPU trust me so just ignore the Cuda stuff so I'm going to go to Linux and I'm going to download static CPU only sounds good to me and this is another thing so if you're using uh windows or any antivirus anywhere it's probably going to get it's probably going to flag XM rig as a virus so just make sure that you Mark it's not a virus in your antivirus program and then we'll go ahead and download that now once you've downloaded an extracted XM rig you're going to see these files the config. json the sha-256 sums and the XM rig executable first thing we need to do is make some changes in the config. json we want to look for the line that says user and it says your wallet address go ahead and put your wallet address on that line so we put it right in there and the next thing we want to change to is our pool so by default it just goes to this donation pool we want to find a pool to Maya Monero in you can my Monero solo if you want but it really really lowers the chances of you actually getting anything because the only way for you to get any payout is to mine the whole block if you're going to mine solo which is almost like winning the lottery especially if you don't have a very high-end CPU or really multiple high-end CPUs to basically be mining in your own pool so to find pools we can go to miningpoolstats.
stream forward slash Monero and we can see all the different ones available and like I said one of the advantages of mining in a pool is you're going to get more frequent payouts so you can see the minimum payout amount uh basically you would need to contribute that much of a hash rate towards mining the Block in order to actually get that payout if you don't end up contributing that much like let's say you've only mined a very very teeny amount of a block then you might not meet the threshold for this minimum payout so that's something to pay attention to when you're selecting a block or when you're selecting a pool rather how low is their minimum payout another thing you want to take a look at are the pool fees as well so these are going to be paid to the maintainer of the pool out of whatever amount that you've earned and another thing to pay attention to is the total Network hash rates of the pool this is very very important because we don't want any of these pools to end up having a majority a 51 share of the hash rate on monero's network now the best pool to use is really a P2 pool or peer-to-peerpool. io because this gives you the advantages of Both Worlds right so it gives you the advantage of mining Solo in the sense that you're not having to pay any pool fees but because you're in a pool and everybody is contributing their hash rate towards mining blocks you're going to get more frequent payouts because you guys are going to end up splitting those blocks that the pool ends up Mining and their minimum payout is also the lowest right so it's . 0004 XMR so even if you contribute a teeny tiny bit to p2pool.
io there's a good chance that you're actually going to get some Monero paid to you for your efforts but like I said there's some extra software and configurations required to set this up so I'm just going to go ahead and link up with support XMR . com and so if we go here to the help section they're going to show us how to set it up so we've already got the wallet address we've already got the mining software so let's go into configure settings and here we can see that the miner is going to want a pool URL in a port so something like pool. supportxmr.
com and the port 3333 is for the low starting diff 55 55 is for the medium starting diff I think I'm gonna go with that since I do have a thread Ripper so we'll go ahead and copy that into [Music] our pool or into our URL field and I'll put 55 55. and another thing we can change too is the Donate level so by default one percent of all of your mining efforts are going to go to the developer of xmrig if you don't want anything to go to there you can change it to zero or if you wanted to have a higher amount you can obviously increase this percentage so go ahead and right quit this and when you go to run xmrig I recommend running it as root and I'll show you why I recommend doing that actually let me reduce this a little bit so if I were to run it regularly without root we get this little error here feral failed to apply MSR mod hash rate is going to be low so what this MSR is all about is Hardware prefetches basically it's going to make the mining process more efficient it's going to give us a higher hash rate if we have this enabled and you might have to change some configurations in your bios to enable it or some configurations in your operating system to enable it and then on Linux you also need to run xmrig as root or if you're on Windows you need to run it as an administrator in order to be using MSR such a little bit of advice I wanted to give you so go ahead and run it again as root and then you can see all the information that's coming up here so you can see um that I have huge Pages enabled this is another thing that helps with your hash rate I have the one gigabyte Pages disabled right now so maybe I would want to change that if I'm going to start mining more often and then we have the actual info here as far as the miners concerned you can see the pool that I'm in right here as well as the IP address for the pool and it looks like I'm getting some work to do so why don't we go ahead and just let that run for a little bit [Music] [Applause] [Music] thank you [Applause] [Music] [Applause] [Music] all right so as you can see my thread Ripper has been putting in some work so let me explain to you what all of this stuff that you're seeing in my terminal means so of course new job from pool support xmr.
