Linked Questions

8
votes
4answers
18k views

Why is mining necessary for the Bitcoin network/system? [duplicate]

I understand that a transaction is a record of 1+ Bitcoins being given from one party to another. I understand that a block is a collection of unverified (pending) transactions that gets verified ...
3
votes
3answers
5k views

Since there is a limited number of bitcoins, will miners become obsolete? [duplicate]

The way i understand it, by calculating and validating new blocks miners keep the bitcoin network safe. As a 'reward' for this they recieve bitcoins. However, since the number of bitcoins is limited,...
0
votes
1answer
3k views

Solving a block and verification of transactions [duplicate]

My understanding of mining is that the reason an award of Bitcoin comes along with the solving of the current block is to give people incentive to actually try to solve the block. My understanding is ...
2
votes
1answer
4k views

Who benefits from mining? [duplicate]

After reading many articles, I didn't find an answer to the following. "Miners use special software to solve math problems" Okay, but for whom? Are there organizations or people that need those ...
3
votes
2answers
818 views

What is required to generate a block? [duplicate]

I've read a little about BitCoins and think the idea is very interesting. I was wondering what is required to generate a block? I assume there is some software you need. Do I also need an account ...
2
votes
1answer
199 views

How do transactions fit into mining? [duplicate]

One question about the inner working of the mining process: I know there isn't such a thing as a block 30% or 99% mined, or a mine is blocked or it isn't, I get it. The thing is: how do the ...
185
votes
8answers
109k views

What exactly is Mining?

I have heard that mining is for people with ready hardware and blah blah blah... But what exactly is it? Does it operate like real mining? I mean, people talk about it like you are physically mining.
93
votes
15answers
21k views

Does hoarding really hurt Bitcoin?

Some people believe that hoarding hurts the Bitcoin economy. But are they really right? As long as corresponding goods vendors and services will be here to stay and reinforce people's faith in Bitcoin,...
123
votes
10answers
42k views

How much will transaction fees eventually be?

Some people keep evangelizing that Bitcoin transaction fees are much lower than in PayPal or with credit cards. However, once nearly all 21 million bitcoins have been mined, the network will still ...
11
votes
6answers
6k views

What is the rationale behind Bitcoin mining?

I don't understand the logic of "mining", if bitcoins are a digital currency, why do we need a GPU to "make 'em"?
7
votes
3answers
5k views

What Value does mining provide?

After reading the O'Reilly book and perusing online resources, I'm still confused about the value that the actual mathematical mining provides to Network (I understand it does provide value, but not ...