what are bitcoin pools??
yes. details please
A bitcoin (mining) pool is a group of multiple individuals agreeing to cooperate in their bitcoin mining efforts. If anyone in the pool is successful in completing a transaction block, then all participants in the pool get a share of the block reward split up based on the amount of work each participant has contributed to the effort.
somewhere you mine bitcoins i think, like extract them
ok and extract from what?
No. It isn't physical mining, you don't literally "extract" them. You contribute to the proof-of-work that is used to form a distributed consensus, and in exchange you receive a block reward that consists of the sum of the current block subsidy plus all the transaction fees of all transactions included in the block.
the theory part from wikipedia. that we all know..
but a real explanation.. anyone?
Real explanation of what? Of what a pool is? Or of what is involved in the process of "mining"?
Help you with what? PM isn't necessary, I can answers right here?
well i dont know but i enjoy using, no tax
You'll need to check with a tax adviser who is familiar with your personal jurisdiction. In most tax jurisdictions you are still legally required to pay tax on bitcoin transactions.
something else i want to add.. since all newbies are here, me too.
the GSDFWERF@$#)(DSO@J that makes an amount of bitcoins, where do they come from?
That mess of letters and symbols doesn't make any amount of bitcoins.
i second that question.. how do the definition of 32dsoihfi sofoi09u3w0ds makes 1 bitcoin?
That mess of numbers letters and spaces does not make 1 bitcoin.
and if that is so,
It's not.
how do people define that !@$DSGDS is one bitcoins.
They don't. There is a distributed ledger that maintains a list of unspent outputs which are encumbered with a requirement for them to be used as inputs to fund a transaction. Each output is assigned a value by the person that creates the output. The protocol rules only recognize as valid a transaction that has supplied in its inputs a total value that is greater than or equal to the sum of the values of the outputs.
where are they INPUT so that the amount is defined?
The initial input of value occurs with the creation of the block. The miner (or mining pool) assigns a block subsidy to themselves. The protocol will only recognize a subsidy that less than or equal to the current subsidy level. If a miner (or pool) tries to reward themselves a larger subsidy, then all other miners, and all peer nodes, and all clients, and all wallets on the network will reject the block and the miner won't get anything at all.
if they have to input the 124wdfsxkcjoidh somewhere to define the number of bitcoins it will be equivalent to. then i can write down a bunch of 1234rewdushdiu23hcd put it wherever they put it and by trial and error see how much bitcoins it is equivalent to
You can write down any number you like and put it wherever you like, but if you don't complete a proper proof-of-work, or your take a subsidy that is larger than the network currently allows, or there is anything else that you've done that doesn't meet the requirements to pass a test of validity, then the entire network will simply ignore what you've done.
i too want to know what really is bitcoins where do they come from. ok from block. block of what?
Block of transactions. The miner (or mining pool) collects a set of unconfirmed transactions and assembles them into a block. Then they create a header for the block. Finally they complete a proof-of-work on that header. If they can successfully complete the proof-of-work before any other miner does on their block, then they get to broadcast the block and receive the subsidy and fees.
is there a number of posts i have to do to climb the ladder from newbie to something else?
https://bitcointalk.org/index.php?topic=178608.0i have 1 bitcoin in my wallet. i was paid by it, so now i am into bitcoins
how do i sell
Here are just a few options:
https://bitcointalk.org/index.php?board=53.0https://www.coinbase.comhttps://www.circle.com/enhttps://localbitcoins.com/https://www.bitstamp.net/https://www.bitfinex.com/and what price i can get?
That depends on where you sell it.
obviously people wont pay me the market price.
They might. It depends on your efforts and your negotiating skills.
Coins don't actually exist. All the are really are is a transaction history from the blockchain.
Correct. "bitcoins" are just an abstraction that we humans use to make it easier to discuss the process of transferring control of value.
A miner is used to solve a hard equation and if you solve it you get the block.
The equation itself is not that difficult (worldwide the calculation is completed 348,351,298,390,000,000 times per second), but it has to be calculated repeatedly with different inputs each time until the miner stumbles on a resulting value that is lower than the current difficulty target.
Right now the block rewards you with 25 bitcoins.
Correct. Or more specifically the protocol rules currently allow the miner (or pool) to assign a new value of 2,500,000,000 to any address (or set of addresses) that they like in the first transaction in the block that they create.
thankyou.. i really appreciate. lots of things i didnt understand but you managed to unceil most of them in one post
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