Newbie All-Day - Ask All Your Bitcoin Questions Here!

[marcotheminer]

First I am not completely new but by the time I got into bitcoin, I was under the impression that mining is too difficult to be profitable unless you have asics or a server farm.. Is this correct? I mean you have to be the "winner" or in a pool to receive bitcoin, right? Do all miners receive transaction fees, and is it worth it just for that if you try to cpu mine with one pc? I doubt I could make anything with trying to out mine anyone.

I'm afraid I don't fully understand transaction fees (I know they would be small but not sure how they are earned).

First of all, transaction fees are included with the 25BTC block reward that goes to miners.

Basically, it isnt worth it solo mining anymore and even with a large amount of hashing power worth several $100,000s many do not break even on their investment.

Will bitcoin eventually rise or it will fail and reach a value of zero dollars?

No one can answer that question. Personally I believe (with the recent news and such) it will crash to around $400 but 'bounce back' to $500. It will then remain there for a few months before a big movement (either up or down)

[virtualx]

Just for certainty, do other cryptocurrencies depend on the bitcoin network (as in nodes) or are they fully running their own network?

[DannyHamilton]

Just for certainty, do other cryptocurrencies depend on the bitcoin network (as in nodes) or are they fully running their own network?

A few of them depend on bitcoin and are built on top of the bitcoin network.

Most are fully running their own network.

[gjarreau]

Thank you for answering my earlier questions. One thing that struck me in an earlier post (and having listened to podcasts), was the fact that some other alt-coins ride the block-chain. I assume by using it, they enlarge it, making it harder to d/l and store. Isn't this a "tragedy of the commons" scenario?

[DannyHamilton]

Thank you for answering my earlier questions. One thing that struck me in an earlier post (and having listened to podcasts), was the fact that some other alt-coins ride the block-chain. I assume by using it, they enlarge it, making it harder to d/l and store. Isn't this a "tragedy of the commons" scenario?

The blockchain has limits built into it that limit how quickly it can grow.

Unless the protocol is modified int he future, currently a block must be smaller than 1 megabyte.  Any block larger than that would be considered "invalid" and would be rejected by all miners and nodes.

Blocks are created on average every 10 minutes.

This means that with the protocol the way it is today, the fastest that the blockchain can grow is a bit more than 144 megabytes a day or somewhere around 53 gigabytes per year.

Of course at the moment we are not yet anywhere near the maximum growth rate of the blockchain.  After nearly 6 years of existence, the blockchain is currently less than 22 gigabytes. That's an average of less than 4 gigabytes per year.

While services that attempt to build on top of the blockchain may add a few more transaction to a block, they also increase the utility and therefore the value of bitcoin. Furthermore, to get those transactions confirmed quickly they need to pay transaction fees in bitcoins.  This adds to the bitcoin economy and increases the revenue for the miners.

[Kakmakr]

Thank you for answering my previous question.

Blocks are created every 10 minutes, but how long does it take for miners to solve a block?

Does this vary? {time}?

How would I know, if a pool adds the transaction fees to it's payouts? I am considering joining Ghash or the PBMining group.
 

[gjarreau]

Thank you for answering my earlier questions. One thing that struck me in an earlier post (and having listened to podcasts), was the fact that some other alt-coins ride the block-chain. I assume by using it, they enlarge it, making it harder to d/l and store. Isn't this a "tragedy of the commons" scenario?

.....cut for brevity......
While services that attempt to build on top of the blockchain may add a few more transaction to a block, they also increase the utility and therefore the value of bitcoin. Furthermore, to get those transactions confirmed quickly they need to pay transaction fees in bitcoins.  This adds to the bitcoin economy and increases the revenue for the miners.

Thanks,
 I can now see how it probably won't get out of hand. I just bought a couple BTC for offline storage and this makes me feel better about the future.

[DannyHamilton]

Thank you for answering my previous question.

Blocks are created every 10 minutes, but how long does it take for miners to solve a block?

It only takes a miner (or a mining pool) a fraction of a second to "create" a block. To create a block, the miner (or mining pool) chooses a list of unconfirmed transactions and builds a merkle tree.  The merkle root is then used to build a block header. Doing all of that should take a modern computer less than a second.

It is the "solving" of the block that takes the entire network, on average, 10 minutes. The amount of time that it takes any individual miner or mining pool to solve a block depends on the total amount of hash power that they are using and how lucky they are.  If a miner (or a mining pool) has enough hash power to generate 92 petahash per second, then at current difficulty they will solve a block approximately every 20 minutes.  If a miner (or mining pool) has enough hash power to generate 500 megahash per second, then they will solve a block approximately every 7000 years.

Does this vary? {time}?

Yes.  Block solving (mining) is a random process.  The protocol automatically adjusts the difficulty every 2016 blocks to try and keep the block solving average time close to 10 minutes, but it is possible for multiple blocks to be solved in a second or two, and it is possible for it to take a few hours before a block is solved.

How would I know, if a pool adds the transaction fees to it's payouts? I am considering joining Ghash or the PBMining group.

Most pools provide their payout rules on their website.  If a pool doesn't say whether they include transaction fees in the payout, then you should assume that they don't include them.

[michietn94]

newbie Q :
how do i able to get trust ?
Is that possible for me to get trust,nowadays ?
Where do i make a first start ?

[DannyHamilton]

newbie Q :
how do i able to get trust?

Be a trust worthy person.  Trust is something you earn over a long period of time by acting in an intelligent, reliable, ethical, moral, and trustworthy person. It is not something given to you just because you want it.

Is that possible for me to get trust,nowadays ?

Sure.  It has always been possible for people to earn the trust of others, for as long as people have been communicating.  I expect it will continue to be possible for as long as people exist.

Where do i make a first start ?

Start by not making ridiculous and excessive use of large sized fonts and colors.  Next, get rid of the advertisements in your signature.  Carrying advertisements for others creates a financial disincentive to provide unbiased and honest feedback, and creates a financial incentive to spam the forum with useless and pointless drivel. Then participate in the discussions on the forum that you care about. Make sure that all of your posts are intelligent, reliable, ethical, moral, and trustworthy.

Help others that need help, because it is the right thing to do. Not because you expect to be compensated for the help or for the quantity of posts you create. Defend those that are unable to defend themselves. Report spam, scams, and posts that are in the wrong sub-forum.  Leave feedback for those that act in an exceptionally trustworthy manner and for those that act in an untrustworthy manner.

[marcotheminer]

how do i able to get trust ?
Is that possible for me to get trust,nowadays ?
Where do i make a first start ?

Participate in trades, (that you need, not only for the trust), be helpful around the forum and over time you will earn others' trust. It never happens overnight, it will take a few weeks to months to earn trust especially from a member who will make you 'green'.

Thanks DannyHamilton for contributing too!

[lionelpaul]

Hi all, my question:
Will people keep mining BTC when all bitcoins (21M) have been created?
If yes, why? If no, how will the network be secured and transactions validated then?
Thanks

[DannyHamilton]

Hi all, my question:
Will people keep mining BTC when all bitcoins (21M) have been created?

You mean in the year 2140?  That's more than 100 years from now, and you're worried about it?

Regardless, the answer is: "As long as bitcoin still exists and is still in use, then yes people will keep mining."

While the process might be the same as it is today, it may not be called "mining" any more.  By then, they might just call it something like "transaction processing" or "transaction ordering".

If yes, why?

To earn bitcoins.

If no, how will the network be secured and transactions validated then?

No need to answer that question.  It has already been established that the answer is that the process that we currently call "mining" will continue.

[hardleft121]

As a new comer I have a lot of questions on Bitcoin. But for now I want to know how can I make some Bitcoin in a short time?

[shorena]

-snip-
But for now I want to know how can I make some Bitcoin in a short time?

This question gets asked a lot and I am never sure if those asking the question understand bitcoin. Its just another form of currency you earn it the same way as other currencies: you work, you sell (digital) goods, you trade it for other currencies. Well, bitcoin is a bit different. E.g. you can sell your signature space to someone. I no longer recommend faucets, they are a waste of time.

[marcotheminer]

-snip-
But for now I want to know how can I make some Bitcoin in a short time?

This question gets asked a lot and I am never sure if those asking the question understand bitcoin. Its just another form of currency you earn it the same way as other currencies: you work, you sell (digital) goods, you trade it for other currencies. Well, bitcoin is a bit different. E.g. you can sell your signature space to someone. I no longer recommend faucets, they are a waste of time.

The most viable way and probably the most certain way to make bitcoins is to sell your service in the marketplace section. Be it handmade goods, digital codes, laptops, XBOXs or a no longer needed car, they can all be traded for bitcoins in the marketplace section!

[Kakmakr]

I want to earn trust, but I am as poor as a rat.

When I looked at this forum, I saw everyone saying, "Join a signature campaign" and everyone is doing this, and making some money, for posting on this forum.

Some people, and I see it's mostly high ranked members, says not to join signature campaigns.

I am confused, why provide opportunities for people, to earn some income, just to tell people, that it's wrong?

I have seen this on other forums too. People join early and make tons of money, and then later, the same people stop doing this, and moan and groan about spam and such.

Surely Signature campaigns have a place, to help newbies like myself, to get some income?

And if restrictions are placed on the people hosting these campaigns, eg. [Do not encourage people to post more than 20 posts per week] Spam could be reduced?

I live in a very poor country, and I cannot afford to buy bitcoins, and I lack skills to sell on the forum. I also have no digital goods to sell. How else can I earn a income?

Please, do not feel offended by these statements, it's just my observation as a newbie to this forum.

[DannyHamilton]

I want to earn trust, but I am as poor as a rat.

Trust doesn't require money.  Trust requires activity and always acting in a moral, ethical, honest, reliable, and trustworthy manner.

There are people with a lot of money that I wouldn't trust hold a penny for me.

There are people with no money that I would trust with my life.

When I looked at this forum, I saw everyone saying, "Join a signature campaign" and everyone is doing this, and making some money, for posting on this forum.

Not everybody.  I would never recommend that anybody join a signature campaign or spam the forum for their own personal gain.  That is not what I'd call "moral, ethical, honest, reliable, and trustworthy".

Some people, and I see it's mostly high ranked members, says not to join signature campaigns.

Everyone has their own opinions on the matter.  Do you want money, or do you want trust.  I'm not saying that you can't have both, but it is a lot easier to acquire money than it is to acquire the trust of others.  It is even easier to acquire money if you are a thief, scammer, liar, criminal, or otherwise bad person.

I am confused, why provide opportunities for people, to earn some income, just to tell people, that it's wrong?

There are lots of opportunities in life to earn money with bad behavior.  The fact that something pays you money doesn't make it "right".

I have seen this on other forums too. People join early and make tons of money, and then later, the same people stop doing this, and moan and groan about spam and such.

Spam is spam, no matter who is doing it.

Surely Signature campaigns have a place, to help newbies like myself, to get some income?

Just like theft, scamming, and lying have a place to help people get some income?  Figure out what you are good at, and what you enjoy doing.  Provide a product or service to society.  Accept payment for that service.

And if restrictions are placed on the people hosting these campaigns, eg. [Do not encourage people to post more than 20 posts per week] Spam could be reduced?

No.  Then people would just create multiple accounts and get paid for 20 posts on each account.

I live in a very poor country, and I cannot afford to buy bitcoins, and I lack skills to sell on the forum. I also have no digital goods to sell. How else can I earn a income?

Contribute to society in a productive and useful way.  If you don't then what benefit does the world receive from your existence?

Please, do not feel offended by these statements, it's just my observation as a newbie to this forum.

I'm not offended by your statements.  Please don't feel offended by mine.

[Itsumo]

Ask away and I will attempt to help whoever I can, whenever I can.

You may ask anything thats on your mind related to bitcoin!

What is the best thing to do if your coins was stolen/scammed by someone unknown to you?

[Kakmakr]

Thank you for answering my previous question.

Blocks are created every 10 minutes, but how long does it take for miners to solve a block?

It only takes a miner (or a mining pool) a fraction of a second to "create" a block. To create a block, the miner (or mining pool) chooses a list of unconfirmed transactions and builds a merkle tree.  The merkle root is then used to build a block header. Doing all of that should take a modern computer less than a second.

It is the "solving" of the block that takes the entire network, on average, 10 minutes. The amount of time that it takes any individual miner or mining pool to solve a block depends on the total amount of hash power that they are using and how lucky they are.  If a miner (or a mining pool) has enough hash power to generate 92 petahash per second, then at current difficulty they will solve a block approximately every 20 minutes.  If a miner (or mining pool) has enough hash power to generate 500 megahash per second, then they will solve a block approximately every 7000 years.

Does this vary? {time}?

Yes.  Block solving (mining) is a random process.  The protocol automatically adjusts the difficulty every 2016 blocks to try and keep the block solving average time close to 10 minutes, but it is possible for multiple blocks to be solved in a second or two, and it is possible for it to take a few hours before a block is solved.

How would I know, if a pool adds the transaction fees to it's payouts? I am considering joining Ghash or the PBMining group.

Most pools provide their payout rules on their website.  If a pool doesn't say whether they include transaction fees in the payout, then you should assume that they don't include them.

Ok, so does this mean, a customer has to wait 10 minutes for his transaction to be validated, before he can leave with his goods?

Will a merchant allow me to leave his store, if my transaction is not validated?

I saw someone saying on this board, it's only safe, to accept that the transaction went through, if you received 7 confirmations. I tested this last night, and a transaction with very little fees, took up to 30 minutes for 7 confirmations.