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danilotron
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November 04, 2013, 10:02:58 PM
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Hi everyone, my name is dani. I would like to discuss something i still do not understand very well. For what I have studied BTC is a cryptocurrency without any government influence, untraceable, and with much more perks which any existing government will be able to offer. Where i get lost is in the creation of this coin, its created by miners which solves mathematical problems at a difficultly level to control the amoumt of blocks a user can find which reward 50btc. In this scenario how does the difficulty change for instant? We will reach max btc soon at current rate, am i wrong? Also if someone buy a mining rig it will be obsolete in weeks and new faster hardware will be required for any profit at all, making mining useless.
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November 04, 2013, 10:05:49 PM
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its created by miners which solves mathematical problems at a difficultly level to control the amoumt of blocks a user can find which reward 50btc.

Welcome

25 BTC currently, block reward is halving every 4 years

solves mathematical problems - I would say bruteforcing for lowest hash
der_markus
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November 04, 2013, 10:09:32 PM
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As far as I understood, you can continue mining and will get a part of the transaction fees.
danilotron
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November 04, 2013, 10:13:40 PM
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In other words the amount of btc somone can earn is VERY limited, and very soon the amount of new btc circulating the market will reduce drastically, am i right? For 4 years 1 block gives 25btc, even joining or creating a pool is not enough. If its hard now, how hard will it be in 4 month to earn any btc.
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November 04, 2013, 10:21:47 PM
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In other words the amount of btc somone can earn is VERY limited, and very soon the amount of new btc circulating the market will reduce drastically, am i right? For 4 years 1 block gives 25btc, even joining or creating a pool is not enough. If its hard now, how hard will it be in 4 month to earn any btc.

You are correct, the amount if Bitcoins that is to be created is very limited, there will never be more than 21 Million Bitcoins.

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Also if someone buy a mining rig it will be obsolete in weeks and new faster hardware will be required for any profit at all, making mining useless.

Some people will still profit from mining, but it will be very difficult (arms race).
exstasie
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November 04, 2013, 10:40:05 PM
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Since it will be so difficult...won't it discourage majority of people from mining, which will thus decrease the amount of new Bitcoins being mined compared to now?

Ecurb123
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November 04, 2013, 10:44:34 PM
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as I understand it, it is possible for the difficulty to go down, however I'm not clear on what the conditions are which will allow for it to go down.
Birdy
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November 04, 2013, 10:46:02 PM
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Since it will be so difficult...won't it discourage majority of people from mining...

Yes, it will discourage a lot of people and they will leave.
But that's no problem, the difficulty adjusts for that until a good balance is found.

...which will thus decrease the amount of new Bitcoins being mined compared to now?


There is a delay for difficult adjustments ,so there is still a difference (currently we are mining through the blocks 30% faster than on schedule, this also means the reward halving will happen sooner)

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as I understand it, it is possible for the difficulty to go down, however I'm not clear on what the conditions are which will allow for it to go down.
After 2016 blocks the Bitcoin system checks how much faster/slower than the expected 2 weeks the blocks were solved and will set the new difficulty.
danilotron
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November 04, 2013, 10:51:21 PM
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Since it will be so difficult...won't it discourage majority of people from mining, which will thus decrease the amount of new Bitcoins being mined compared to now?

You have a good point, This is what i believe will happen, miners will and are getting discourage but where there is money, there are are sharks. (asic miner , btc guild) which will cover most of the btc created , making it useless for any normal person to earn any profit at all even if investing 2,000$ on hardware.
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November 04, 2013, 10:53:31 PM
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Since it will be so difficult...won't it discourage majority of people from mining, which will thus decrease the amount of new Bitcoins being mined compared to now?

You have a good point, This is what i believe will happen, miners will and are getting discourage but where there is money, there are are sharks. (asic miner , btc guild) which will cover most of the btc created , making it useless for any normal person to earn any profit at all even if investing 2,000$ on hardware.

Exactly.  Didn't realize though that if it is deemed too difficult (aka, people are discouraged from mining) that it'll become a bit easier to mine the next ones, etc.

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