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How exactly does bitcoin mining work?

#11Orestes417Posted 8/13/2014 6:03:39 PM
The actual equation for calculating the value of a dollar Is actually quite fascinating. And by fascinating I mean likely to make your brain bleed. I remember seeing it a long time ago but I can't find the page atm.
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#12DAP1MP13Posted 8/13/2014 6:16:43 PM
WyzeGye posted...
Same time post FTW


Nice!! I believe that's the first time it's happened to me. =D
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#13zen_miseryPosted 8/13/2014 6:30:55 PM
Bitcoin mining explained in a simplified way.

When a user makes a transaction a record of that transaction is made. That record is then verified, after verification is made it is archived for further cross-referencing and verification on future transaction.

This is done through complex algorithms that are constantly being checked and rechecked and being added to the ever growing "block chain"

As more transactions are made and the block chain grows so does the necessary processing power to maintain the block chain.

Third parties aka "Miners" devote resources to maintaining the block chain. They are rewarded for their processing power in the form of transaction fees. The more transaction your process the larger the fee is to you, thus better compensation. This is why miners try to maximize all available processing power.
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#14ChromaticAngelPosted 8/13/2014 6:41:54 PM
you can't mine bitcoins anymore without ASIC or you will spend more money on electricy than you will make with bitcoins you earn. You will also wear down your PC.

If you really want to mine bitcoins you should buy an ASIC bitcoin mining rig but good ones can cost over $10k.
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#15WyzeGyePosted 8/13/2014 6:46:13 PM
ChromaticAngel posted...
you can't mine bitcoins anymore without ASIC or you will spend more money on electricy than you will make with bitcoins you earn. You will also wear down your PC.

If you really want to mine bitcoins you should buy an ASIC bitcoin mining rig but good ones can cost over $10k.


ehhh, you can get USB block eruptors for about 50 bucks a pop. Chain up 30-50 of those and you're profitable.
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