That is exactly what it is. Just write down your private key on a piece of paper and there you go.
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Please, try to read my whole answer instead of pointing out one thing. For example: Why do you suggest our skilled craftsmen should work for free, if awarded with 25BTC on every block signed
I didn't suggest that. I said: It only works by dividing the 25BTC block reward among the miners working for your pool, considering fees are negligible at the moment.
I think pontiacg5, Foxpup and I have made it very clear why we think your ideas and understanding isn't right. We're just trying to help you and give you our opinions. You are implying that Bitcoin is unfair regarding to dust payments, but that's implemented the way it is because of what pontiacg5 explains. And it is done that way because the core developers implemented it and the majority of miners think it is the best way. To sum it all up, yes you can make a mining pool to accept dust payments. Good luck with that though.
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The recommended fee at the moment is 0.1mBTC, which translates to ~0.1 dollar. That's a little bit high, but the core developers are working on a variable fee system in the next version of Bitcoin-QT. It can be even higher if you're trying to send BTC which comes from a lot of smaller payments to your wallet, because the size of the transaction is much larger which implies that the recommended fee is higher. But to answer your questions, you can make a transaction without any fee, but it could happen that no miner will include it in their mined block. In the future the amount of fee should be more correlated to the actual value of BTC.
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You can try that, but it's not gonna work. Nobody wants to mine without earning anything. And it only works if you manage to mine a block, which needs a large amount of hashing power. It only works by dividing the 25BTC block reward among the miners working for your pool, considering fees are negligible at the moment.
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Beside the paranoid ideas of only use a clean installation, don't use USB flash drive because they can be infected etc, just encrypt your wallet and copy the wallet.dat file to a flash drive or external hard drive and you'll be fine. But as always, if you're not really sure what you're doing, begin with a small amount of BTC in your wallet for testing.
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I like the idea of http://brainwallet.org/. You only have to remember a good and long pass-phrase in your head. Nothing on paper you have to keep secure, can't be lost physically, and can't be stolen without torturing. Feels like that would be very vulnerable to a dictionary based attack Not necessarily, you can make little mistakes in spelling on purpose. You can use odd characters in a sentence. As long as you can remember it.
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You're hard to convince. You are citing the Bitcoin wiki, but that's just one sentence. It continues with , but for transactions which draw coins from many bitcoin addresses and therefore have a large data size, a small transaction fee is usually expected. Furthermore Transaction fees are voluntary on the part of the person making the bitcoin transaction, as the person attempting to make a transaction can include any fee or none at all in the transaction. On the other hand, nobody mining new bitcoins necessarily needs to accept the transactions and include them in the new block being created. The transaction fee is therefore an incentive on the part of the bitcoin user to make sure that a particular transaction will get included into the next block which is generated. So yes, mining exists in Bitcoin. Of course it's used as an analogy, but it has many parallels to actual mining. It takes time and energy, and you're not sure if you "mine" anything at all. So the 25 BTC is mined, and the transaction fee is a reward from the ones who want to make a transaction to keep the network secure and/or want to speed up the time that the transaction is included in one of the next blocks.
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I like the idea of http://brainwallet.org/. You only have to remember a good and long pass-phrase in your head. Nothing on paper you have to keep secure, can't be lost physically, and can't be stolen without torturing.
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Absolutely, but...
Only if it has more differences than only the name. It should have significantly other characteristics, I can't see why it would be good to have all those clones with very bad names. If somebody does see it, please enlighten me.
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The fees will take the place of the block rewards. Hopefully Bitcoin is used much more then, so you can earn a good penny from mining. It will always be a continually balance between what can be earned from fees and rewards and the amount of hashing power. And of course some miners will drop out, but also the difficulty can drop.
The increase in difficulty can decrease, not the difficulty, right? I think OP was referring to what would happen when mining will no longer occur. In that case, who knows? Someone could mine the rest of them with a quantum computer in 5 years. No, difficulty can decrease. That's the way to make sure blocks are generated approximately every 10 minutes. If no one would mine anymore, then Bitcoin would be dead. If Bitcoin would be dead, no one would be mining anymore. In case the quantum computer would become a success, I think we need a whole different system than Bitcoin. But that yields for every technology which uses encryption. Mining doesn't need to be profitable forever.
Let's look at exchanges for example: They only can profit from traders as long as the bitcoin-system works (and without mining it doesn't). If MtGox, or BTCChina wants to keep making profits in the future, it'll be wiser to spend 10% of their profits on mining, than to lose 100% of their profits because the system doesn't work anymore.
And that's just one example, actually everyone who wants (or profits from) a working network, be it speculators, daytraders, exchanges, merchants, younameit, has an incentive to keep the system running.
That's true, I'm just saying that fees are implemented i.a. for replacing the block award. It's also a tool to get your transaction through quickly.
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The range will become lower if enough people gonna start using it. Especially when the part of using it for storing and paying becomes significantly larger than the speculating part. But we're not even close to that, it's still "the early days".
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The fees will take the place of the block rewards. Hopefully Bitcoin is used much more then, so you can earn a good penny from mining. It will always be a continually balance between what can be earned from fees and rewards and the amount of hashing power. And of course some miners will drop out, but also the difficulty can drop.
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If you want to make a study out of it, then you should be a little bit more careful what you post. 1. Add a source. 2. Did he really moved on, or could he also continued to help under his own or another name? He could be dead for all we know. Good luck!
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I mean i like the whole alternate currency thing...but this is just getting crazy. At least 4 coins are launched every single day. And it is only getting worse. I mean...BaconBits? Ermagherd Cern? Hysterical but a little ridiculous. And all it is doing is flooding the markets. It is drowning out the potential for other good coins. Pandacoin? Come on....who thinks up crap like this.
Your not the only one who thinks it's ridiculous. Especially all the coins that are Bitcoin clones with bad names. Only the parameters are tweaked a little sometimes, but that's it. But don't let that put you off. There are some alt coins that are really different under the hood. Those are really exciting and maybe better than Bitcoin. Those should be compared with Bitcoin's performance and let the market decide which one is the best. The rest of the alt coins is just a way for the first adopters to make money from the people that buy in later.
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Yes. But the Bitcoin documentation is giving directions (implemented in version 0.8.2) of how to include transactions in a block. https://en.bitcoin.it/wiki/Transaction_fees#Including_in_BlocksI think most of the miners will stick to this, and minimizes the chance that somebody is blacklisted and cannot make any payments ever. It does not mean that individual miners cannot choose how to include transactions. They can even choose to mine only empty blocks, which is more resource efficient from the perspective of the miner. But the other miners must also check and agree with the found block, thus it's not entirely up to the one who mined it. I think this gives enough counterweight to balance this problem. The 'HAVE' you are talking about is just not possible, because everyone can code its own miner. A decentralized system can give you a headache sometimes.
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Don't forget to introduce your family and friends in Bitcoin as a way to pay.
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There is no way you would make any money by mining Bitcoin with your pc. It costs a lot of electricity and the little money you would get out of it would by no means compensate for that. And with the old cheap hardware it's pretty much the same. It's really competitive. The only way to get some significant work done is to buy high hash rate equipment, but is very expensive. And it's questionable if you ever break even. Doesn't mean that you don't have to mine, if you want to contribute to the success I encourage you to mine. It strengthens the security of the network. If you still want to do it, some sites can explain it better then I can do it here. E.g.: http://startbitcoin.com/
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Open the debug window in the help menu. There you will see the current number of blocks and the estimated total blocks and the last block time. See if the current number of blocks field is going up. If so it's OK. Then you probably have a slow computer or have a lot of programs running in the background.
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First of all download the program here. Then read this to generate a private key. Finally add the final key to your bitcoin client as stated here.
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