Try to Explain this to a Mentally Retarded Person

Value can't be inflated due to limited quantity.

So wait it actually serves a purpose? I thought it's just like finding digital coins. Can you PLEASE explain this more Idon't get it because to me it seems like the processing is just being wasted

I actually watched a video explaining cryptocurrencies and it didn't explain any of that.

See this:
bitcoinwisdom.com/bitcoin/difficulty

tl;dr Mining difficulty automatically adjusts based on the number of miners and their combined hashing power.

There is effective inflation from a new batch of alts every day

Money is unlimited, so adding more money devalues the rest. Inflation rates can be increased, so it devalues even quicker. Bitcoin is mined based on a fixed difficulty, so you know exactly how much is added, and when it is added. This sort of allows it to be priced into the current and future price of a bitcoin.

Nobody wants your shitty printed money. People do want Bitcoin. It's called the double coincidence of wants, read a book.

>the state of Veeky Forums
holy fuck can you not think for a second without having to make a thread

Well that kind of proves my point. Gold has gone down since the 80s

There is no difference.

Bitcoin has zero (0) intrinsic value and nothing behind it, it's a fringe in economics and will soon die out thankfully.

no you get it, new coins are added 100x faster than fiat

its just a pile of infinite garbage

brb just invent 50 new coins, easy

Well, you can mine gold too. Let's see you print some.

dumb fucks there will only ever be 21 million bitcoins and the last one will be mined in the year 2140...

...

>people want bitcoin
Because they think they can sell it for real money later. Read a book

I still don't understand.

>Gold has gone down since the 80s
confirmed brainlet

Miners keep network alive(they verify transactions) and get rewarded with crypto that they are mining and that is how new amount of coins get into circulation. And since block reward is limited, the speed of new coins getting into circulation is predictable and that makes it pretty much inflation free.
Please read the definition of inflation and deflation, your question doesn't make any sense.

For the mining, most coin just test all the possible result to a given mathematical question.
As soon as a compiter find the suited answer, it gets the reward.

Some coin (like etherium) allows ou to do some calculus to add usefulness to the mining.
(Very simplified explanation, in detail, it's different, but you will get the idea)

retard

your stupid that is in usda with is inflation currenct. gold did not go up the dollar has decreased its buying power i had newfags. if you bought a oz of gold in the 80 you would have the same buying power as it would today. i mean how do you live

Transactions need to be verified, no one will do it for free, so the incentive is to give miners coins

good things there are infinite coins invented daily

brb bitcoin cash, dogecoin, potcoin, etc

>What is inflation

Except bitcoin's network is BY FAAAAAARRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR bigger and SAFER. The bitcoin miners could literally kill any coin with sha256 hashing right now if they just felt like it. To kill bitcoin it would cost over $4 Billion in hardware plus $9 million in electricity every day

So how does this benefit anyone? Wheres the productivity behind it? Some user said it's letting the internet run faster since you're basically letting someone else use your network

Oh

Miners aren't running the transactions though are they?

>post a chart that shows it's worth more now than in the 80's even when adjusted for inflation

It doesn't benefit anyone, in fact it's a massive waste of energy and it's completely untenable in the long term.

Bitcoin is predictable.

gold is the standard hedge vs usd inflation have you ever even talked to a boomer in your life

you're beyond retarded pls go back to tidder and never come back again fucking piece of shit

The chart clearly shows it higher at the 80s fucking idiot

That's what i'm thinking! Then this is probably a giant scam

haha its being diluted by infinite shit... then again bitcoin is outdated shit anyway

good luck

Nice digits.

Ok, let's be more clear and take bitcoin as an example.
Transactions are queued.
When a suffisant amount is reached, a new block is created.
Miners will verify legacy of all the transaction of the block (easy and fast to do) and will calculate the checksum of all the transaction (easy and fast too).
Then they will add timestamp and a "write whatever you want" area and will compite the checksum (fast and easy).
BUT 99.9% of the time this checksum will not start with `0` (zeroes).
To be valid, the checksum must have the number or zero required by the network dificulty.
So, you change a little bit your "write whatever" zone and do marh again.
And so as long ad you or an other find a value that satisfy the checksum zeroes need.

Again, it is simplified, but you see the picture.

mining is needed to prove transactions, at least for bit coin

That makes no sense and im pretty sure you are just repeating what someone said, you don't understand it either. All that matters really is limited amount right?

We are already seeing the crash of shitcoins like BCC so eventually they will be wiped out of the system. Then we are left with like 10 or 20 great coins and that will be it.

Running your own version of the bitcoin code does not dilute bitcoin you absolute brainlet. Anyone on earth can fork bitcoin 400 times, and it won't change the fact that its network is insanely secure compared to any shitcoin... Eventually dipshits will lose their ass and stop falling for shticoin scams, but maybe not who knows.

They think they can buy things with it later. You know like in the future when things aren't exactly as they are in the present.

Yeah but who would sell something for bitcoin.

>one bubble in 81 is "the 80's"

Explain thoroughly what exactly you don't understand about mining. The way that user described it is pretty accurate, the work that your computer does secures the network such that if someone evil wants to overwrite the latest block, they have to do what it took the entire world 30 minutes to find, if they wanted to overwrite the latest 2 blocks, they have to do twice that work.

The people who survive the normie holocaust.

the evil government needs to launch that their super computer from dan brown's "digital fortress"

You can send money to anyone on earth without permission, without being censored,without trusting anyone, without risk of charge back for the seller, and it can be done fast, relatively cheaply, and extremely securely.
That's pretty damn valuable to a lot of people.

so is the money stored on the block...or the block is just the ledger. this is where I start not being able to understand

Fuck (you) user, I take time to simplify and explain mining to (you) and you shat on me.
Go fuck yourself and lurk more newfag!

Thank. Some points are simplified and not as true as they could be, bit as I said it was to explain the big picture.
Yes bitcoin waste energy. In that sens, it is backed by electricity cost nd hardware evolution.
If a crypto quantic computer use almost no energy and break a block in no time, bitcoin goes back to very low value.

No one said it was different than printing money

>You can send "money"

fixed
then you have to exchange them for the real money and here it's where the government comes in

crypto mining is governed by mathematics, controlled rate of expansion
>fiat is printed out of control by KIKES and stupid politicians
good crypto is limited, appreciates in value
>fiat is inflationary, keeps losing value
(((Banksters))) control fiat
We the people control crypto (except scam coins like ripple XRP)

Money is never stored as a plain number.

You have two kind of stuff written in the block :
- user mined a block and receved xxx btc
- user transfert xxx btc to pepe

So to know how many bitcoin ypu own, you need to rewind the whole blockchain from the start and lurk for your address and every event related to it. In the end, you have your amount of btc.
That takes almost 2h on my computer to scan the whole chain. (I'm running bitcoincore, lurk to lurn moar) that's why most people use online "wallets" that will do it for you.

You only need a ledger to derive the balance of every wallet. So the coins aren't physically stored anywhere. Every wallet already exists and is simply the public key to a given private key. The private key can be used to sign transactions that are processed by miners, it can be easily verified whether or not the private key that signed the transaction is indeed the match public key/address for the transaction to come from. Each block is a collection of transactions with a header that allows abritrary input. Miners attempt to find the input of a hash function such that when the hash function is given some input from the previous block, plus some random text, the output is of certain requirement (number of preceeding 0s). Therefore, each block depends on the previous block since the hash function took in some input from the previous block. So to overwrite any blocks, you must also overwrite any blocks after it. Anyone can submit new blocks to the network and each client can easily check the block's validity. The client therefore received many blocks, whichever set of blocks builds the longest chain of blocks is then considered the current blockchain. If someone kept 10 blocks a secret and then releases them all at once before the rest of the network has eached 10 blocks, he will overwrite any blocks the rest of the network mined. However, the only way to do this is to mine these blocks faster than the rest of the world. And since each block depends on the previous one, you only have 30 minutes each time to try to beat the network, before you have to restart all you work. Is everything clear now?

Thank you.
You manage to explain ll the bitcoin functionality in one Veeky Forums post, that's neat.
I will keep it somewhere.

Also checked.

Cryptocurrencies like Bitcoin usually have a set number of coins that can be mined. From the beginning everyone has known how many Bitcoins their would eventually be maximum (~21 million).

To prevent a massive release of coins in a short time due to huge increase in hashrate (mining speed) "difficulty" is adjusted based on the amount of hashrate thrown at a cryptocurrency. Difficulty increases serve to moderate how fast the pre-determined amount of coins enter circulation. An additional mechanism called block reward halving occurs as well. Block halving reduces the block rewards over time. Some cryptocurrencies have a fixed % inflation model like Dogecoin or Peercoin. In Bitcoin difficulty and block halving mechanisms along with the fixed maximum supply prevent the possibility of hyperinflation.

Mining is different from printing money because its not done at will based on the decisions of an entity like a government. Likewise it is not like illegally printing money because it is a designed distribution mechanism and security mechanism for the cryptocurrency. The owners of the cryptocurrency are informed on the distribution model before investing by reading about it.

Nobody knows how many fiat units will be printed because the decision is made as needed versus being guided by a known mathematical model. Mining is a distribution mechanism and incentive to secure the blockchain.

Mining is a designed feature.