Mining Bitcoin at a Glance 🔊

[meves99]

The term 'mining' is closely related to how one gets Bitcoin. Basically, this activity is just a simple description of the computer process to get Bitcoin, which is like mining gold.

For the Bitcoin system to work, people can instruct their computers to process transactions for everyone.

Computers are arranged in such a way, in order to be able to perform very complex calculation processes. From there, the owner of the computer gets a reward in the form of Bitcoin.

Because the calculation process is very complicated, it takes a strong computer to get Bitcoin. This is what is then referred to as 'mining'.

However, the Bitcoin system has been set up in such a way that the calculation process required to acquire Bitcoins becomes more and more difficult as time goes on.

This is done to prevent too many Bitcoins from being generated, and eventually circulating. If someone starts mining now, it may take years before they finally get one Bitcoin

On the other hand, it takes a lot of money to pay for electricity and to assemble a computer powerful enough to be used to mine Bitcoin.

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[jackg]

I think the "reduced circulation" part is a side effect of the currency's architecture. It might not have been fully thought through by the initial core team however it is significant as it only matters that the value of the currency will increase (as apposed to fiat, assuming scarcity and value are proportional).

Mining is also luck based, you just have a lot more chance of luck with a more powerful machine. Mining individually could probably be likened to buying a lottery ticket.

[BitMaxz]

Take note you can not mine BTC with your PC maybe years ago but right now you can't able to mine bitcoin on PC even it's for the lottery.

You can only mine BTC with any ASIC machine that supports sha256 algo.

[mk4]

I think the "reduced circulation" part is a side effect of the currency's architecture. It might not have been fully thought through by the initial core team however it is significant as it only matters that the value of the currency will increase (as apposed to fiat, assuming scarcity and value are proportional).

I think it's really likely to be an intentional thing. How else will we be able to make bitcoin slowly but surely scarce besides the supply distribution halvings? I really don't think we can rely on the "lost bitcoin" aspect alone for scarcity.

^If I understood you correctly.

[jackg]

I think it's really likely to be an intentional thing. How else will we be able to make bitcoin slowly but surely scarce besides the supply distribution halvings? I really don't think we can rely on the "lost bitcoin" aspect alone for scarcity.

^If I understood you correctly.

I have two terms: reduced circulation, reduced inflation.

The reduced inflation part of bitcoin was definitely thought out. I don't think people losing funds was something the developers might have expected, I just buy new hard drives and keep a few copies of old files when one of my drives fills up... Realistically, there were attempts to counteract it with hierarchical deterministic methods (eg mnemonics and master keys).

I feel like it can't be just me keeping 4 copies of everything?

[mk4]

I have two terms: reduced circulation, reduced inflation.

The reduced inflation part of bitcoin was definitely thought out. I don't think people losing funds was something the developers might have expected, I just buy new hard drives and keep a few copies of old files when one of my drives fills up... Realistically, there were attempts to counteract it with hierarchical deterministic methods (eg mnemonics and master keys).

I feel like it can't be just me keeping 4 copies of everything?

Mm. Right. Inflation aside, I don't know, if it was actually the case, it might be exceedingly unrealistic for them to think that people wouldn't be losing their wallet backups left and right. It's far more likely that they did expect it to some extent, but it just so happens that significantly more people lost backups than he/she/they expected.

In the end, whatever lol. It's not like we can do anything about the past. One thing's for sure, secure your backups, people!

[stompix]

You should really do more research before trying to explain it to explain to others, your text is full of mistakes

Computers are arranged in such a way, in order to be able to perform very complex calculation processes. From there, the owner of the computer gets a reward in the form of Bitcoin.

No, this ain't some feng shui stuff, and the owner of a computer miner doesn't get a reward unless he mines a block or the pool he is mining gets one, and most importantly, there are no "computers" right now mining bitcoin there are only Asics!

However, the Bitcoin system has been set up in such a way that the calculation process required to acquire Bitcoins becomes more and more difficult as time goes on.

Again wrong, the difficulty doesn't grow with time, it grows if more people are mining, difficulty can also go down like it has the last week.

If someone starts mining now, it may take years before they finally get one Bitcoin

This makes no sense, the amount you get is only related to the amount of hash power you have. You can solo mine with an s9 you will get a bitcoin in 2070, you mine with 1000 S19pro you will get one in about a week.

On the other hand, it takes a lot of money to pay for electricity and to assemble a computer powerful enough to be used to mine Bitcoin.

Not exactly, you can mine with a 300$ miner, if you have cheap or near zero energy you will still make a profit.

[khaled0111]

Computers are arranged in such a way, in order to be able to perform very complex calculation processes.

This is not true and it's a common misconception.
Miners do not perform complex calculations or solve complex mathematical problems as you would read on most crypto related websites.
Miners simply compute the hash of the block header twice: (sha256(sha256(block header))) and they keep doing this till they find a winning hash.
What makes mining hard and time/power consuming is the difficulty which is adjusted according to the network hashing power.
Miners or at least most of them do not use computers (CPUs) to mine anymore, they rather use GPUs or ASICs.

[pooya87]

Miners or at least most of them do not use computers (CPUs) to mine anymore, they rather use GPUs or ASICs.

Bitcoin miners can only use the special machines called ASICs (Application Specific Integrated Circuit) to mine bitcoin and nothing else since anything else including a big GPU rig can not produce nearly enough hashrate compare to an ASIC.
Altcoin miners on the other hand can use either CPU or GPU or ASIC to mine their altcoin depending on what the coin is.

[Raja Singa]

Miners or at least most of them do not use computers (CPUs) to mine anymore, they rather use GPUs or ASICs.

Bitcoin miners can only use the special machines called ASICs (Application Specific Integrated Circuit) to mine bitcoin and nothing else since anything else including a big GPU rig can not produce nearly enough hashrate compare to an ASIC.
Altcoin miners on the other hand can use either CPU or GPU or ASIC to mine their altcoin depending on what the coin is.

Yes, although we can do mining using the CPU, it will not generate Bitcoin. I've tried it, the computer melted. For mining altcoins, can use the CPU or GPU. But also quickly damage the motherboard.  If it's a professional miner, they no longer use a standard computer, because the expenses are greater than the income generated by mining. Especially the problem of electricity costs.

[stompix]

Yes, although we can do mining using the CPU, it will not generate Bitcoin. I've tried it, the computer melted.

Bs, cut the crap with the fiction stories, the CPU will not melt because you mine bitcoin or altcoins or play games it will shut down well before melting, all motherboards have this kind of protection.

For mining altcoins, can use the CPU or GPU. But also quickly damage the motherboard. 

Again, stupid, there is no damage to the motherboard unless if you think mining works by grabbing the motherboard and start digging a ditch in your backyard to find coins.
If you don't know anything about it stop with those stories as you're just saying newbies and simply continuing those myths about damaged GPUs that have been mining for 6 months and they will magically break as soon as you buy one, OC done by amateur gamers and poor cooling will damage a graphic card 10 times more than mining by the book.

[Joeyops]

Most people will damage a little to nothing, i build pc’s from used minercards.. not 1 complaining about issues with hardware.
 there are some idiots that are messing up stuff like it’s a OC benchmark. 80c• is not that great 24/7. And its easy to hit that ! 

[mumang siat]

The term 'mining' is closely related to how one gets Bitcoin. Basically, this activity is just a simple description of the computer process to get Bitcoin, which is like mining gold.

For the Bitcoin system to work, people can instruct their computers to process transactions for everyone.

Computers are arranged in such a way, in order to be able to perform very complex calculation processes. From there, the owner of the computer gets a reward in the form of Bitcoin.

Because the calculation process is very complicated, it takes a strong computer to get Bitcoin. This is what is then referred to as 'mining'.

However, the Bitcoin system has been set up in such a way that the calculation process required to acquire Bitcoins becomes more and more difficult as time goes on.

This is done to prevent too many Bitcoins from being generated, and eventually circulating. If someone starts mining now, it may take years before they finally get one Bitcoin

On the other hand, it takes a lot of money to pay for electricity and to assemble a computer powerful enough to be used to mine Bitcoin.

developed countries will develop, if bitcoin continues to be developed with the potential for more and more enthusiasts, basically bitcoin does have positive and negative values, but if developed properly, the potential to change the direction of youth becomes easier, skills and income will be needed if youth are able keep up with the times