Mining Introduction

No blog which even mentions earning bitcoin would be complete without some information about mining bitcoin.

This is just an ice-breaker post, if you already know the basics of mining you might pass this one by for later posts. 
I'll throw in some links though so  everyone can get into the intricacies if they desire.

Mining I say? Don't grab that gelignite just yet.  We all know what bitcoin is (if you don't go check out the links in this post), but where they actually come from can be shrouded in mystery even for people trading it and earning it.

The answer to this is that they are generated by the protocol itself upon the solution of a block, and awarded (25 BTC/block now) to they who solve it.  A block is a segment of the public record of all the bitcoin transactions made, and "solving" it involves creating a hash of the data which can be used to check the validity of the block of transactions.  All of this can get very complicated.

Mmm, hashes.

Math I say? Don't grab that TI-86 just yet.  The difficulty of creating these mathematical hashes is adjusted by the protocol, based on how "fast" the network can solve them.  It is safe to say it is very difficult, as at the moment the total network hashrate is 460.89 teraflops, i.e. very "fast" (current info can be found here).

Basically CPU mining is over, as is solo GPU mining for the most part, sorry folks the gold rush is done, mining is now a serious business that requires real investment to pick up.  I will get more into the hardware and modern day mining in later posts.

If that sort of talk makes your eyes glaze over, all you really need to know is this:  Bitcoins come from the network itself as a reward for maintaining it by verifying all the transactions, and doing this work is called mining.

My explanation is just that, another view on the subject, summarized in a different way that will hopefully help more people understand it.  For better explanations and the nitty-gritty details, I place you in the caring hands of the bitcoin community at large:

• WeUseCoins - About Bitcoin Mining, a basic overview of mining.

• Bitcoin Wiki - A very clear and concise explanation of mining.

• Bitcointalk -  Mining forums, this is where the pros discuss the latest trends and tech, this megapost is a fantastic beginner's guide.

• Freenode - the #bitcoin-mining channel is a good place to chat with people about mining; though it can seem quite inactive, they are there, lurking.