Bitcoin noob here.

Where does the money I get from mining bitcoin come from?

Does bitcoin mining means I "steal" from other people?

If yes, should I fear this probability of being robbed while I make transactions?

I am thinkin of some type of "law conservation of money".

Does this law apply also to bitcoin?

Is bitcoin mining legal?

Could you please provide two references of how mining works, one for the street man and one for the programmer man?


  • 2
    Please stick to one question. You can create multiple separate questions if necessary. When typing the question, pay attention to the list of suggested answers. The answer may already exist.
    – Jannes
    Commented May 22, 2016 at 4:04

1 Answer 1

  1. The Bitcoin is generated according to the protocol for the Proof of Work you provide to the network. The reward is comprised of a block reward and transaction fees from bitcoin transactions included in the block.
  2. No. Mined coins are new to circulation and not taken from anyone else. Transaction fees are not stolen. The sender of each transaction decides how much of a transaction fee to pay the miner. Higher fees are more likely to result in a fast confirmation time.
  3. Do not fear of getting robbed when making transactions. Instead fear getting robbed by those you trust to hold bitcoin on your behalf. Learn how to secure your own bitcoin and keep your private key safe and secure.
  4. Bitcoin is a public ledger recorded on a blockchain. Each address is controlled by a private key. When you send Bitcoin from one address to another the only person that can spend it is the owner of the private key of the address you are sending the bitcoin to. Miner cannot intercept your bitcoin and steal it. They only verify the transaction took place, record it on top of the blockchain for the world to see.
  5. Legality of Bitcoin mining may vary by jurisdiction but is happening all over the world. So far there appear to be a more laws aimed at regulating exchanges than miners.

Here are a few simple and more technical references as you requested:





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