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Author Topic: How Bitcoin mining works?  (Read 12414 times)

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How Bitcoin mining works?
« on: December 17, 2017, 05:12:27 PM »
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Offline cointech

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Re: How Bitcoin mining works?
« Reply #1 on: December 28, 2017, 04:39:28 PM »
this is great, thanks!

Offline CMD368

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Re: How Bitcoin mining works?
« Reply #2 on: December 29, 2017, 03:44:17 PM »
thx. :D

Offline Hardmandie

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Re: How Bitcoin mining works?
« Reply #3 on: December 30, 2017, 04:43:07 PM »
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.
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Offline MaxXXXX

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Re: How Bitcoin mining works?
« Reply #4 on: January 28, 2018, 02:20:48 PM »
can not understand anything

Offline bitbuddy

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Re: How Bitcoin mining works?
« Reply #5 on: January 30, 2018, 08:04:25 PM »
Whoever wants to even start thinking moving into Crypto World should have atleast read Satoshi's whitepaper.

Offline Adelle

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Re: How Bitcoin mining works?
« Reply #6 on: February 07, 2018, 09:22:41 PM »
Basically it works like this:
Every ten minutes or so mining computers collect a few hundred pending bitcoin transactions (a “block”) and turn them into a mathematical puzzle. ... The miner who found the solution gets 25 bitcoins as a reward, but only after another 99 blocks have been added to the ledger.
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.
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Offline Bilkymesk

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Re: How Bitcoin mining works?
« Reply #7 on: February 13, 2018, 01:16:31 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.

I wonder there is any software that can help to earn bitcoins without paying. I am newbie so I want to learn more before investing money on. Thanks

Offline MiningRussia

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Re: How Bitcoin mining works?
« Reply #8 on: February 13, 2018, 10:32:55 AM »
You don't have to buy cryptocurrency , enough buy hardware and earn it and be sure that your money will return. All you need two things, powerful hardware and  cheap electricity.
if you are a beginner, you don't  have the experience or technical skills, there are componies like "Mining Russia"  supplying services of hosting cryptoequipment for commercial mining on the territory of Russian Federation.
you can see a lot of advantages:
-Cheap electricity( 0.06$)
-A wide selection of mining equipment for mining the various cryptocurrencies
-Security and safety your hardware
-Full legal support with drafting a contract
-High profit!!!
just look and begin to make money with us! http://www.miningrussia.com
Let's begin mining in Russia on beneficial  terms of the electricity tariff.    miningrussia.com

Offline J

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Re: How Bitcoin mining works?
« Reply #9 on: February 14, 2018, 07:29:48 AM »
Basically it works like this:
Every ten minutes or so mining computers collect a few hundred pending bitcoin transactions (a “block”) and turn them into a mathematical puzzle. ... The miner who found the solution gets 25 bitcoins as a reward, but only after another 99 blocks have been added to the ledger.
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.
The mining-pool get 12.5 BTC per block, not 25 BTC. This stage has already passed. By the way, in the beginning of Bitcoin the miners received 50 BTC per block.

Offline innate

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Re: How Bitcoin mining works?
« Reply #10 on: February 27, 2018, 07:05:51 AM »
nice post! Finally i can found this

Offline MaRiNA_098

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Re: How Bitcoin mining works?
« Reply #11 on: March 22, 2018, 12:26:03 PM »
Interesting post, thanks a lot!

Offline ZigZag

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Re: How Bitcoin mining works?
« Reply #12 on: March 24, 2018, 09:46:32 AM »

Is not mining BitCoin a waste of energy? I thing, that in future there will be more projects like Nebula Network - decentralized storage cloud. Emission mechanism is tied to their supply and exchange rate is rock stable (separated from BitCoin rate). It's already working on Tether USDT which has stable rate in about 1$ and I thing thats great - investors dont have to worry about rate turbulences. What do you thing?

Offline Bitmann

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Re: How Bitcoin mining works?
« Reply #13 on: March 25, 2018, 02:25:15 PM »
Thanks!

Offline jitenrajput

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Re: How Bitcoin mining works?
« Reply #14 on: March 26, 2018, 06:32:27 AM »
Bitcoin mining is a process by which bitcoins are generated. They are given in the form of reward to the miner who solves the puzzle first. It works on the concept of blockchain.

Suppose you are transferring 50 bitcoins to say your friend. When you broadcast the message, all the nodes in the network will verify the transaction. There are specialized programmers called “miners” who solve the puzzle in order to add the transaction to the block. The miner who solves the puzzle first receive reward in the form of bitcoin and transaction fee. In the previous years bitcoin reward was 25 bitcoins per transaction and right now its 12.5. The reward is halved every four years. This process of bitcoin generation is known as bitcoin mining. The transaction verified successfully is then added to the block and bitcoins are transferred to your friend’s account/wallet.
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Offline troy28

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Re: How Bitcoin mining works?
« Reply #15 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?

Offline EllenLiao

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Re: How Bitcoin mining works?
« Reply #16 on: March 27, 2018, 10:53:45 PM »
As a Newbie, the article explains mining clearly to me. I'd recommend people to check this out.
But in the explanation to five year old child, it's a little confusing.  ??? So basically, miners have two ways to earn cryptocurrency: 1. mine blocks and contributing computer power to blockchain (every miner is solving the same mathematical problem at a time, and the first solver could gain the new releasing cryptocurrency as a reward). 2. process the transaction for users in the blockchain. Transaction fee is existing crypto currency that will pay for miners.

Lmk if there's any concept should be corrected.  8)
« Last Edit: March 27, 2018, 11:54:41 PM by EllenLiao »

Offline yazzy

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Re: How Bitcoin mining works?
« Reply #17 on: April 11, 2018, 02:18:05 PM »
Nice post! Thanks for the link! I used to wonder how it works.  I guess some who are actively participating in bitcoin transactions know not much about it.  Nice summary jitenrajput by the way.

Offline Coinini

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Re: How Bitcoin mining works?
« Reply #18 on: April 12, 2018, 08:56:24 AM »
Im not sure if mining is best way to earn money, but for sure it's waste of energy. I prefer trading. Well, there are already alt coins with real value thanks to emission mechanism tied to their supply. There are innovative alt coins which are generated due to distribution of storage cloud supply (in form of computational power and disc space). I thing it will be next step in cruptocurrency development...Time will see if Im right, but project is worth to follow.

Offline holdandrelax

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Re: How Bitcoin mining works?
« Reply #19 on: April 16, 2018, 02:20:31 AM »
Is it still profitable to mine?

Offline Coinini

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Re: How Bitcoin mining works?
« Reply #20 on: April 16, 2018, 06:02:27 PM »
I was a miner of Bitcoin for some time but currently I thing that it's a waste of energy. I prefer trading to get money. Otherwise, Im sure soon mining will be less and less popular because there will be more coins like mentioned above Nebula Network, where emission mechanism is tied to their supply. It makes that rate of exchange is rock stable and free from btc rate turbulences.

Offline Garden

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Re: How Bitcoin mining works?
« Reply #21 on: April 18, 2018, 11:21:07 AM »
Bitcoin mining is a computer processing in order to ensure the security and verification of all the transactions made between one user and other. These transactions are made over a decentralized network. Hope you people will get an idea about the mining.

Offline Zoey_iam

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Re: How Bitcoin mining works?
« Reply #22 on: April 18, 2018, 11:54:18 PM »
It's not an easy topic to discuss but thanks for sharing the information.  It's something i definitely would like to do eventually.

Offline Zoey_iam

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Re: How Bitcoin mining works?
« Reply #23 on: April 20, 2018, 12:42:42 PM »
Whenever I get puzzled and confused about this topic I always go to your link. :D

Offline Sensiyorum

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Re: How Bitcoin mining works?
« Reply #24 on: May 23, 2018, 09:17:06 AM »
Bitcoin mining is a technique in which external hardware (GPU) is used with the memory in terabytes in order to mine the coins. You just need to buy an external hardware from a trusted company and then attach it with your pc and wallet. It is the newest mean of earning money via generation of coins!

Offline MoonGringo

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Re: How Bitcoin mining works?
« Reply #25 on: May 23, 2018, 10:21:26 AM »
In my opinion mining is useless, while there are projects like mentioned decentralized storage cloud Nebula Network, where emission mechanism is tied to the supply - it's something more innovative than well known PoS or PoW. Thanks of it, rate of exchange is rock stable and independent from BitCoin, and as we know it's the main problem for investors and generally for cryptocurrencies to break into mainstream.

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Re: How Bitcoin mining works?
« Reply #26 on: May 24, 2018, 07:05:03 PM »
Up to this point I thought that at least some cryptos are still profitable to mine. But afaik monero, pkt w/e same thing as btc in the sense that they are pointless to mine.

Offline Ifeanyichukwu

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Re: How Bitcoin mining works?
« Reply #27 on: May 25, 2018, 04:18:31 PM »
The new Bitcoin cloud mining system has changed a lot of things. Now anybody can mine Bitcoin from anywhere, quite cool... (*_^)

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Re: How Bitcoin mining works?
« Reply #28 on: May 26, 2018, 09:08:42 AM »
Crypto mining is a process in which you use external harddrive to your computer in order to generate coins for yourself. You just need to buy a harddrive with the capacity of storage in terrabytes and connect it to your wallet. You can generate up to 1 BTC per month via mining!

Offline adconity

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Re: How Bitcoin mining works?
« Reply #29 on: May 30, 2018, 06:44:09 AM »
Bitcoin mining is the process of adding transaction records to Bitcoin's public ledger of past transactions or blockchain. This ledger of past transactions is called the blockchain as it is a chain of blocks. The blockchain serves to confirm transactions to the rest of the network as having taken place. Also, if you are looking to advertise your business on bitcoin-based advertising platform then Adconity may suit your interest, as it helps advertisers and publishers to advertise their business on a crypto-based advertising platform with competitive pricing. Visit the website for more info.

Offline Carry Niggan

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Re: How Bitcoin mining works?
« Reply #30 on: June 03, 2018, 03:03:23 PM »
Bitcoin mining serves as a method to distribute Bitcoins as well as to put transactions into the Blockchain.

Heres how it works: The miner starts by assembling a merkle root with transactions that he wishes to put into the block. The merkle root includes all the transaction that he wishes to include and a Coinbase transaction which is the block reward + the transaction fees (ie. 12.5BTC+all the transaction fees of the Bitcoins in the block). Together with various other data such as the hash of the last block, timestamp, difficulty etc, he puts it together and that is the block header. The miner will then hash the block header and if the hash is lower than the current difficulty target, it is valid. The miner can then broadcast the block and the network of nodes will accept it. If not, the miner will modify the block header to generate a new different hash.

Offline crypterum

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Re: How Bitcoin mining works?
« Reply #31 on: June 04, 2018, 08:10:30 AM »
That's good

Offline CMD368

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Re: How Bitcoin mining works?
« Reply #32 on: June 04, 2018, 07:41:45 PM »
Bitcoin mining is a process by which bitcoins are generated. They are given in the form of reward to the miner who solves the puzzle first. It works on the concept of blockchain.

Suppose you are transferring 50 bitcoins to say your friend. When you broadcast the message, all the nodes in the network will verify the transaction. There are specialized programmers called “miners” who solve the puzzle in order to add the transaction to the block. The miner who solves the puzzle first receive reward in the form of bitcoin and transaction fee. In the previous years bitcoin reward was 25 bitcoins per transaction and right now its 12.5. The reward is halved every four years. This process of bitcoin generation is known as bitcoin mining. The transaction verified successfully is then added to the block and bitcoins are transferred to your friend’s account/wallet.


 ;) ;)

Offline Adriana Lowe

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Re: How Bitcoin mining works?
« Reply #33 on: June 12, 2018, 02:23:22 AM »
Interesting post, thank you!

Offline Coinini

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Re: How Bitcoin mining works?
« Reply #34 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.


 

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