How does one produce bitcoins? How do you "mine" them? I read a thousand articles and asked this question a million times amd NO ONE EVER could explain it to me. Not even /g/.
Either I am fucking dumb as shit or no one understands it.
>yoir computer calculates maths
BUT FUCKING HOW REEEE
What do you download and install?
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Don't even try. Unless you have a ultra top computer, you'll gain nothing with that
unless you have lots of dedicated machines running it's not worth it nowadays.
should have started years ago
>Either I am fucking dumb as shit
also yes
>Either I am fucking dumb as shit
well:
- you don't understand how bitcoin is mined
- you don't know what to download and install, even though there are literally thousands of guides for this
- you ask /pol/ for bitcoin tech support
so you do seem pretty retarded
when you "mine" you are just calculating peoples translations that they are submitted to the block chain. whoever is the first to calculate the transaction is awarded the miners fee + some set amount that is really complex from the block chain itself.
You don't have to understand it. All you need to know that you are like 15 years late what mining is concerned.
theres something called a hashing function which takes a giant ass number and turns it into a much smaller but still giant number. mining bitcoins is finding the giant ass number that matches a smaller number. you need a computer to brute force check a shit ton of numbers to find it. whoever finds that number can write the next block in the blockchain and assign themselves a btc address with like 30 bitcoins in it or something.
There are programs that you download that run calculations. Every so often you get a special calculation. I'll call it a DING!
When Bitcoins first started there were more then enough DINGs to go around. However these days DINGs are rare and take a ton of resources. Between the cost of electricity and PC parts that you use to mine (unless you can min max perfectly) you will lose money. So the moral of the story is don't.
Not helpful
Don't understand any of that
A bit better, understood some of it
this is also done by whoever cracks a block first but isn't why mining is hard.
>calculating peoples translations
Wut. Go read whitepaper.
>A bit better, understood some of it
Nice try, dummy. It's plain obvious you don't understand shit.
You're 5 years late. China mining like crazy.
"Mining" is helping solve the block-chain public ledger for that current interval. The system is distributed, and each contributing node vies for "completing" the current "block" of transactions.
It can be used for many things, block chain technology is the future for many industries.
The transaction infrastructure is calculated by banks of calculator/servers.
These server banks require electricity to function, and generate a lot of heat, so you have to consider electricity charges + power/cooling efficiency.
You can not do this on your desktop and accrue any meaningful wealth. There is more information on the particulars elsewhere, google is your friend.
>buy computer with several good GPU's
>download the entire blockchain
>use bitcoin mining software of choice to scan for new transactions and validate that they are legit
>???
>bitcoin miners fee + set amount from the blockchain for confirming a transaction.
youtube.com
also read the whitepaper
how difficult is to buy with bitcoins? do you need all kinds of vpn shits to hide your wallet and encryptions, or is simply open wallet > buy bitcoin > buy drugs > profit?
Bitcoin is literally a scam
Fractional reserve banking is literally a scam.
Now tell me, which is the bigger problem?
Firstly, this should be in Veeky Forums, which is pretty much a cryptocurrency board now. Secondly, you missed the boat on mining. Ordinary PCs/laptops will waste more money in electricity costs than they'll be able to make back through mining BTC, plus it puts heavy demands on your computer and probably shortens its lifespan. Your best way into cryptocurrency now is either active currency trading, or buy-and-hold strategies. I do the latter.
Bitcoin
buying bitcoin is piss easy
buying drugs (while not getting v&) is a fair bit harder, but there's plenty of guides if you know where to look
You basically take all the pending transactions and calculate a hash value for them that starts with all zeros by incrementing a nonce value you control. You get a fixed amount of BTC for mining the block (calculating the correct hash) and all the miming fees from the transactions. It works because everybody agrees on the same protocol for verification and the overall blockchain as a public ledger.
This.
A crucial, often misunderstood point is that mining does not produce bitcoins or help to process payments in any way. Bitcoins are produced because network agrees, that every block has magic transaction of 25BTC coming out of nowhere. You cannot use other people coins because asymmetric encryption. You cannot double spend because consensus is reached by network.
And ensuring consensus is not easy to compromise is why mining (proof of work) is there - otherwise nothing stops one actor from pretending to be 100500*2^64 different actors, reaching majority and double spend whenever it want. With mining, every participant, in effect, votes by his computational power.
Mining payments (in design they are called subsidies, which is more correct and apt term) are there to motivate people to perform inherently profitless, but necessary job of mining.
Depends. Unless you buy cocain by kilo, 'buy bitcoin -> use it' will be fine.
Sounds like usless imaginary currency that people get from twitch chat/revlo points.
Except the whole world got meme'd into paying real money for it
>How does one produce bitcoins?
You don't, anymore. Which is why their value keeps going up. The more coin that governments confiscate from busts, the less supply, driving up the value.
And you can but REAL drugs and guns with it.
Good luck doing that with your Amazon wallet.
You are about 7 - 8 years late Chyna has that shit on lock. Mine other coins
You need either a really top tier graphics card/CPU, or there was some machine made specifically for mining bitcoin, that does the same math stuff, but uses less power, making it more efficient. Also it's somewhat luck based. I don't remember the specifics but tl;dr: x people mine y bitcoins and only one of them gets the bitcoin, however this happens often enough to ensure everyone gets some. Also there is a maximum amount of bitcoins that can exist, which will be reached in a few years i think.
>2017
>bitcoin
>GPU
You are several years late.
>use bitcoin mining software of choice to scan for new transactions and validate that they are legit
No. Mining software calculates SHA256(SHA256( block hashsum || nonce )) for random nonces until result is less than current complexity. Which gives nonce neccessary to make that block valid and reap that 25BTC.
Transaction processing and validation is performed by regular bitcoin client.
>download the entire blockchain
No need for this in pooled mining.
>paying real money into it
"Real" money is about as real.as bitcoin tbqh
Bitcoin is distributed ledger with some properties, allowing it to be used for value exchange.
Fiat money is paper pieces with some properties, allowing it to be used for value exchange.
Gold money is metal pieces with some properties, allowing it to be used for value exchange.
Also Bitcoin supply is limited.
>machine made specifically for mining bitcoin
Mining bitcoin is calculating SHA256
You can do it on:
- glorified tabulator (CPU)
- general computational device (GPU)
- specialized circuit (FPGA/ASIC)
Other parts of machine are pretty much irrelevant. There are ASIC farms run by smartphone tier boards.
1) There is no point trying to mine them now unless you own a rig of ASICs and have invested lots of money into it. It has been unprofitable to mine not at scale for a long time.
2) Block generation happens with all the nodes on the network passing messages to each other whenever they see a transaction go to someone else, you take the hash value of the transaction ID and append it with a number known as a 'nonce'. The nonce value will start at 0 and be incremented each time. When you hash the transaction ID [more knowledgable people will be able to tell you exactly what value needs hashing, you could look it up in the github codebase] you then look at the hash and see if a very rare condition is met, that being if the hash's first digits are all '0' up to a certain number, say 10 zeros in a row (a very unlikely occurrence) then you have found a new block, announce it to others and everyone starts mining on that block instead and you get BTC to pop magically into your account. What is more likely to happen is the hash does not begin with 'x' number of zeroes so you increment the nonce by one and hash it again. Miners hash things trillions of times before they find a hash with the correct number of zeroes.
/very sketch basic explanation
Have you heard of folding@home?
Its the same basic concept, only with this you get money.
You use your graphics card to essentially crunch numbers for people.
What people and What numbers is a good question, one I dont have the answer to.
If youre unterested in a time frame at all, I think the $700 1080 ti takes about 3 months to get 1 bit coin, runnung 24/7.
I'm basing that off of the numbers I ran for my 980 ti.
Ifyou figure out what exactly is ever being calculated feelfree to post!
Bitcoin has never scammed me out of money without consent.
Can't say the same for banks desu
>reap that 25BTC
the amount you are rewarded is the miners fee that the person choices when they submit they transaction + 25BTC CURRENTLY. that amount will change in the future.
>Transaction processing and validation is performed by regular bitcoin client.
have you ever even used bitcoin before? you need several confirmations before a transaction is considered complete.
>No need for this in pooled mining.
why would he want to share the reward?
I forgot to mention.
There are a Fuck ton of different programs and trackers you can use.
You also need to keep a wallet to store your bitcoins in.
You need to have an extremely strong password for it and I used mine on a usb incase I got some kind of virus, I was nervous about someone being able to take them.
Most people do community mining and you get part of a pool of coins.
...
How is this in any way politics you retard?
And stay out.
Ofc bitcoin cant, its not an entity.
But you can definitely get scammed or have your wallet hacked
>miners fee
Yes, miner receives 25BTC (value depending on number of issued bitcoins, will drop to zero once all supply is emitted) + transaction fees.
>you need several confirmations
Yes, and how that invalidate my claim?
>why would he want to share the reward?
Because it's better to have steady income than extremely random.
>wallet hacked
COLD. AIRGAPPED. STORAGE.
There's something called a hash function. It takes any input and creates a seemingly random output (think random alphanumeric sequence).
The function is written in such a way that it does a couple important things:
>the same input will always produce the same output
>a slightly different input will produce a completely different output
>the function cannot be reversed - i.e. you cannot turn the output back into the input
The only way to get the input from the output is to brute force it, which is exactly what bitcoin mining does.
Your computer runs a brute-force algorithm until it stumbles upon an "input" which matches a specific pattern.
That pattern is then appended to the blockchain along with the pending transactions and you are awarded whatever the current value of a block is.
Also, you're late on this. Mining today is done with specialized machines in countries where electricity is almost free.
If you try mining with a PC, your electricity bill will be higher then what you mined.
WE NEED MORE POSTS LIKE THIS
instead of the space suit and lambo losers that make this board look like a crypto ghetto