Author Topic: How Bitcoin mining works? (Read 877136 times)

bitcoinforum.com · « **on:** December 17, 2017, 05:12:27 PM »

How Bitcoin mining works?

https://www.investopedia.com/tech/how-does-bitcoin-mining-work/

Coinini · « **Reply #30 on:** June 12, 2018, 10:34:13 AM »

Mining is waste of energy. There is already more innovative technology. Emission mechanism tied to the supply. There is Nebula Network - it's decentralized storage cloud with emission mechanism tied to the supply in form of computational power and disc space. Thanks of it it's rock stable and independent from Bitcoin.

emma.lee1890 · « **Reply #31 on:** June 29, 2018, 07:29:08 AM »

The first miner to find the solution announces it to others on the network. The other miners then check whether the sender of the funds has the right to spend the money, and whether the solution to the puzzle is correct.

aikon · « **Reply #32 on:** August 02, 2018, 10:35:55 AM »

It still isn't clear to me how exactly do the coins acquire value...

Shiva · « **Reply #33 on:** August 09, 2018, 12:16:50 PM »

By mining, you can earn cryptocurrency without having to put down money for it. That said, you certainly don't have to be a miner to own crypto.
In addition to lining the pockets of miners, mining serves a second and vital purpose: It is the only way to release new cryptocurrency into circulation. In other words, miners are basically "minting" currency. For example, as of the time of writing this piece, there were about 17 million Bitcoin in circulation. Aside from the coins minted via the genesis block (the very first block created by Bitcoin founder Satoshi Nakamoto himself), every single one of those Bitcoin came into being because of miners. In the absence of miners, Bitcoin would still exist and be usable, but there would never be any additional Bitcoin. There will come a time when Bitcoin mining ends; per the Bitcoin Protocol, the number of Bitcoin will be capped at 21 million.
Aside from the short-term Bitcoin payoff, being a miner can give you "voting" power when changes are proposed in the Bitcoin protocol. In other words, a successful miner has influence on the decision-making process on such matters as forking.
For more information check on Belfrics.com

Thanks,
Shinto

Belfricsbt · « **Reply #34 on:** August 10, 2018, 05:45:33 AM »

Mining computer collect a few hundred pending bitcoin transactions and turn them into a mathematical puzzle in every ten minutes. As a reward, the miner who found the solution gets 25 bitcoins, but only after another 99 blocks have been added to the ledger.

bitbud · « **Reply #35 on:** August 10, 2018, 06:37:06 AM »

I've already read a few explanations about mining.
It's good to read many different ones, then you really get a plan of what mining is.
A friend of mine also explained it to me, I'm trying to soak up as many information as possible (:

Carolxx500 · « **Reply #36 on:** August 13, 2018, 07:55:24 AM »

Thanks for sharing, very helpful topic!

crypto · « **Reply #37 on:** August 21, 2018, 12:57:25 PM »

Hi,

I get to know about mining from a tv show where the character used to solve mathematical problems online by which he was earning bitcoins, but now it all happens by Computers processors.
Computer processors solve mathematical problems by which users get bitcoins.

JosefinaCrane · « **Reply #38 on:** September 27, 2018, 07:22:03 AM »

As a newbie understanding the concept of bitcoin mining will be a bit complex but it is not impossible. There are lot of articles on internet that give information but they are very much technical, so for those who are not much tech savvy will find it confusing. So its better to avoid the technical aspect and rather focus on the how bitcoin mining works. In simple words mining is a process which is undertaken by miners as they are rewarded with certain bitcoins for getting the correct answer. To make things simple consider a situation where there are a lot of miners who are supposed to find an exact answers so they keep trying until anyone of them finds it. the one who finds gets rewarded with certain bitcoins. The only thing is that miners get unlimited chances to guess and calculate the correct answer. Now coming to the technicalities is that you will need a decent hardware setup if you are planning for mining the bitcoins which in turn requires investment. For those who want to have information in more detailed manner including technicalities can take help of internet.

emma.lee1890 · « **Reply #39 on:** September 30, 2018, 07:22:23 AM »

I have always wanted to know how bitcoin mining works. I read some hardwares are needed. How much do I really need to set up a mining software and hardware.

crroman18 · « **Reply #40 on:** October 01, 2018, 09:48:27 PM »

I think the thing is you can spend as much or as little as you'd like to be a miner, but the more successful miners are the ones who invest a lot of money on the best hardware/software. They have a higher chance of winning a block.

BitcoinXCash · « **Reply #41 on:** October 02, 2018, 09:51:25 AM »

helpful topic! THANX

btcismylife · « **Reply #42 on:** October 17, 2018, 06:21:46 PM »

Quote from: troy28 on March 27, 2018, 03:47:45 PM

Does cloud mining still profitable? as per other mining the return is very slow. you have to invest more to feel your earning, i came accross this hashmonster.io site and they will start this April, im planning to try this one, any two cents? i think they are worth a try because you can sell or stop your contract anytime and resell it so you could have your investment back unlike the old cloud mining where you dont have a choice but wait. i think this hashmonster.io mining is worth a try. Any idea guys?

cloud mining is not really profitable now man, it should be only when btc will grow

emma.lee1890 · « **Reply #43 on:** October 21, 2018, 10:26:14 AM »

It is possible for some to mine bitcoins profitably with a single device. The major factor is cost of electricity. Other factors are the cost of the equipment, cooling, and noise. While there might be some economies of scale in mining with 1000 machines, it is not a major factor.

crroman18 · « **Reply #44 on:** October 22, 2018, 02:36:04 PM »

True there are many factors that impact your success in crypto mining.. but the major one no one talks about is the network is not optimized for blockchain tech. This post explains it well https://medium.com/bloxroute/how-bloxroute-benefits-miners-f4816af72f68 [nofollow] hopefully with scalability solutions on the network level we will all be more profitable.

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How Bitcoin mining works?