Questions tagged [mining-reward]

The monetary incentive for mining, especially how block rewards are generated, claimed, and composed. For questions specific to coin generation transactions (coinbase transactions) use the tag Coinbase-Transaction. For questions about the block reward halving, use the tag reward-schedule.

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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.
Phonics The Hedgehog's user avatar
130 votes
7 answers
51k views

How do you obtain bitcoins?

This is a question many people ask when they're introduced to Bitcoin. Bitcoin sounds interesting, but if I want to use this system I will need to get some coins, otherwise, there's no way I can ...
David Ammouial's user avatar
67 votes
9 answers
93k views

Where do bitcoins come from and what gives them their value?

Where do bitcoins come from? From the WeUseCoins.com video it appears they are just being produced by "miners" and sold to people. So who backs Bitcoin or gives it its value?
eMansipater's user avatar
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38 votes
2 answers
14k views

What is the coinbase?

I searched the bitcoin wiki and found references to coinbase, but no clear cut explanation of what exactly it is. I know that miners can tag their coinbases (that is how some sites tell who mined a ...
Andrew Burns's user avatar
70 votes
11 answers
11k views

Will Bitcoin suffer from a mining Tragedy of the Commons when mining fees drop to zero?

One issue that I haven't seen clearly addressed is the possible Tragedy of the Commons in Bitcoin's future (see this answer). 40 years into the future, the only significant direct benefit for honest ...
ripper234's user avatar
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163 votes
6 answers
290k views

What are bitcoin miners really solving?

As with mining, what are the bitcoin miners really solving? I read they are solving hashes, but what does that really mean. Can we see what they are solving? Can someone give an example of what a ...
Patoshi パトシ's user avatar
40 votes
3 answers
49k views

Who gets Bitcoin transaction fees?

Whenever I send bitcoins from one wallet or one exchange to the next there is always a fee. This makes sense with the exchange sites, they are just collecting the fee so they can make a living. What ...
Albert Renshaw's user avatar
132 votes
10 answers
46k 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 ...
herzmeister's user avatar
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41 votes
5 answers
27k views

What will happen to mining after the 20 999 999th Bitcoin?

After the 21 millionth bitcoin or 20,999,999th bitcoin is mined, what will happen to bitcoin mining? - will it just stop, or will we make a further division of the satoshi thanks to Bitcoin's infinite ...
Marco Scannadinari's user avatar
12 votes
4 answers
5k views

The End of Mining

According to Wikipedia, here's a projection of expected future Bitcoin supply: Is there any effect to the dynamics of the system beyond the valuation of Bitcoins? For example, is mining required to ...
blunders's user avatar
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10 votes
2 answers
4k views

Will the proof-of-work system end when all bitcoins have been mined?

This article from ArsTechnica is claiming that Bitcoin is not such an environmental disaster, and one of the reasons they mention is that mining will come to an end. Ok, fair enough, there is an end ...
knocte's user avatar
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7 votes
3 answers
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How exactly do new bitcoins come into existence?

I understand that currently new bitcoins are awarded during the validation/mining process. However, how exactly does the system determine that bitcoins that were previously nonexistent should be ...
Oliver Salzburg's user avatar
7 votes
3 answers
1k views

If there was a period of time with no transactions, what would miners have to do?

This question is similar to a few others, but I haven't gotten seen a clear answer anywhere. It came up as I was trying to explain mining to a newcomer. And he asked: "If aliens came and put all ...
markjwill's user avatar
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24 votes
3 answers
6k views

What happens if there are no transactions in a block?

What happens if there are no transactions in a block? Suppose there is a 10 minute time frame in the middle of the night, maybe on a holiday, and there are no transactions made. Do the miners get ...
shoeless joe's user avatar
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14 votes
4 answers
9k views

What happens once the mining reward gets cut in half?

Sometime around the end of 2012 the mining reward is expected to be cut in half from 50BTC/block to 25BTC/block. What effect will this have? Doesn't this mean that it will be less economic to run a ...
Yuval Adam's user avatar
12 votes
3 answers
2k views

Can someone with 51% computing power earn more than he deserves?

See also What can an attacker with 51% of hash power do? This may have been discussed elsewhere, but I'm not sure what the answer is - if someone owns 51% of the hash power, can't he just ignore the ...
ripper234's user avatar
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9 votes
2 answers
1k views

How many Halving Days will there be?

The first Halving Day was November 28, 2012, when block 210000 was generated. How many more Halving Days will there be?
Colin Dean's user avatar
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7 votes
4 answers
4k views

Is mining still profitable? [closed]

We all know that mining is supposed to keep the Bitcoin system secure. However, difficulty has risen so much that costs for power currently outstrip possible revenue for mining for a large portion of ...
Mononofu's user avatar
  • 537
19 votes
1 answer
2k views

What happens when a miner does not claim all fees/generated coins?

Suppose that a miner for some reason has the generation transaction of their blocks not take all the possible coins. This can happen for a variety of reasons, almost all of which are bugs: An off-by-...
Daniel H's user avatar
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6 votes
1 answer
1k views

Can a miner steal another one's block?

Say we have two miners, Alice (an honest miner), and Eve (an evil miner). My understanding is that when Alice mines a block she advertises it to the network, and once it's part of the longest block ...
user2813687's user avatar
4 votes
2 answers
478 views

How do Bitcoin clients know how many new bitcoins to mint when creating a block?

I understand that lucky clients that create blocks get some transaction fees and are allowed to mint a few new bitcoins to keep for themselves. How do clients know how many new bitcoins to mint for ...
Dan's user avatar
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2 votes
2 answers
312 views

How miners with less power win?

As I understand, when multiple persons mine blocks, only the first one who solves block is the winner and gets rewarded. Basically the winner is the one (solo miner or group in pool) who has the ...
user345602's user avatar
15 votes
3 answers
6k views

Could there be hyperinflation in Bitcoin?

Currently the creation of new coins is fixed at a certain rate which halves every few years and will at some point in the future drop to zero. As I understand it, this is by consensus, i.e. all the ...
Manish's user avatar
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1 vote
1 answer
1k views

Reward system bitcoin

I'm not entirely sure how the reward system in Bitcoin works. So, every 10 minutes a block is solved and 25 bitcoins are rewarded to a miner (or group). This happens in proportion to the amount of ...
Sven Akkermans's user avatar
1 vote
1 answer
89 views

How much is enough

I recently acquired a BTC mining package with total GH/s: 342.56 I realize it is small - but it is a start. What amount of GH/s is good for a beginner to start off with. Do I have a significant ...
Moondancer's user avatar
9 votes
1 answer
8k views

What was the goal of creating the feature of immature coins?

I just ran into the idea of immature coins. Can someone explain to me the idea behind immature coins and what was the purpose of it?
Patoshi パトシ's user avatar
9 votes
3 answers
1k views

Do miners have both the incentive and ability to keep the reward at 50BTC?

There has been some concern about the fact that transaction fees (in their current form) are not an adequate replacement for the current 50BTC block reward. Gavin has said as much, as have others. ...
eldentyrell's user avatar
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8 votes
3 answers
6k 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 ...
R V's user avatar
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8 votes
5 answers
5k views

What date does the 2016 halving happen at?

When does the 2016 halving happen? Is it a predicted date or could it be when network load is achieved?
letyouearn9's user avatar
8 votes
1 answer
3k views

Coinbase transaction's 100-block cooldown period

From the developer guide: The UTXO of a coinbase transaction has the special condition that it cannot be spent (used as an input) for at least 100 blocks. This temporarily prevents a miner from ...
shx2's user avatar
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5 votes
1 answer
631 views

Who decides the block reward in Bitcoin?

I know that when a miner mines a block, he will be rewarded with some bitcoins. But who decides how much bitcoin he will get? If it is decided by all the miners (as they are the ones verifying ...
Shivam Goyal's user avatar
5 votes
2 answers
1k views

Why does the mined block differ so much from the block template?

I am looking at the specific block at height 680175. At the time when the block was not mined yet, I received the block template via bitcoin-cli getblocktemplate '{"rules": ["segwit&...
Andy's user avatar
  • 233
4 votes
3 answers
497 views

What prevents miners from mining more bitcoin after 21million btc?

What prevents miners from mining more bitcoin after 21million btc was mined?
Zheer's user avatar
  • 145
3 votes
1 answer
13k views

How much time in average does it take for an simple PC to create block?

Let's say I have simple computer (CPU- Intel i7 for example), and I start mining blocks in the bitcoin network. How much time in average does it take to create 1 block? (1 per week? 1 per month? 1 per ...
Roy Kuper's user avatar
2 votes
1 answer
582 views

What came first, transaction or mining?

I have been thinking for a while and can't really figure this out.. From my understanding, in Bitcoin network, 'bitcoins' are created when a miner successfully mines a transaction. So this means in ...
Vicyan's user avatar
  • 123
2 votes
1 answer
810 views

How does bitcoin reward who find the block?

After getting the getblocktemplate, hashing it, finding a solution and generating the proper message to submit to the blockchain, if i ever solve a block how does the network knows it was me and ...
Rafael Milewski's user avatar
1 vote
2 answers
2k views

What is the smallest fee you can pay for an on chain transaction?

From what I understand, the smallest fee you can pay to miners per transaction is 1 Sat/byte. With a basic Bitcoin transaction being roughly 250 bytes that would obviously mean the fee is 250 sats. ...
Joe's user avatar
  • 113
1 vote
1 answer
611 views

Does mining activity only exist if there are bitcoin transactions? [duplicate]

Bitcoin's mining only exists, if there are some transactions, right? If nobody trades bitcoins, the miners don't have any transactions to validate, and so the number of bitcoins in circulation doesn't ...
Guillaume Paris's user avatar
1 vote
1 answer
2k views

If the current block mining reward is 12.5 bitcoin, then why don't outputs match?

I'm browsing blockchain.info, and I'm trying to understand what I'm seeing. The current block mining reward is 12.5 BTC, but I'm seeing weird outputs like 14.769 BTC coming from newly created bitcoin. ...
EdSanville's user avatar
0 votes
1 answer
138 views

How is a “reward” encoded in a block?

If a miner creates a block including an appropriate hash value, then he sends it to all nodes, and each node verifies if this is correct or not and add it to the previous block chain if this is chosen ...
Rubertos's user avatar
  • 227
12 votes
2 answers
7k views

Bitcoin without mining - what needs to be implemented

I have read this related question - Bitcoin without mining and I am trying to understand the very basics of Bitcoin network and the blockchain. I wonder, if we take the mining out of Bitcoin, what ...
Wapac's user avatar
  • 1,064
10 votes
2 answers
30k views

How many Bitcoin are mined per day?

A block is generated every ten minutes. The reward changes periodically, and will halve 32 more times. What is the approximately daily reward across the entire network?
Colin Dean's user avatar
  • 7,042
8 votes
3 answers
15k views

Do I need a wallet to start mining?

Oh, sorry. The question is really simple: Do I need a wallet to start mining and "keep" this bitcoins? or Can I just stay with my bitcoins in my computer?
H_7's user avatar
  • 983
8 votes
1 answer
503 views

Why bother having limitations on Bitcoin Coinbase Transaction Scriptsigs?

There are a few limitations on the structure of the coinbase (reward) transaction in a block. There is only one input. vin.size() == 1 (source) It doesn't reference any previous output. vin[0]....
morsecoder's user avatar
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6 votes
3 answers
640 views

Is the current network difficulty algorithm appropriate for "Peak transaction-only mining"?

At some point in the future miners will depend more on the Tx fee than per-block payout. Right now people turn on and off their equipment based on local trends such as price of electricity, etc. On ...
makerofthings7's user avatar
5 votes
3 answers
546 views

From a legel perspective, are Bitcoins "created" by a miner or the Bitcoin Protocol?

The recent FinCEN announcement said explicitly that virtual currency isn't a "currency" by the standard sense of the word, and shouldn't be regarded as such. Should Bitcoin ever be considered a "...
makerofthings7's user avatar
5 votes
2 answers
980 views

Transaction fees when a block chain is discarded

I'm a bit new to the bitcoin system, so I apologize if this is a "noob" question. A user attempts to take all the unverified transactions it knows about and aggregate them in a chain block. The same ...
Gil Moshayof's user avatar
5 votes
3 answers
124k views

How many hashes create one Bitcoin?

Irrespective of the length of time required to calculate one hash, how many hash operations are required to produce one Bitcoin?
powtac's user avatar
  • 385
5 votes
4 answers
656 views

Why can malicious miners not award themselves with any number of bitcoins?

Why can malicious miners not award themselves any number of bitcoins? Is that because the award itself is a transaction which has to be confirmed by a random miner? And if so, what if the miner ...
nicks's user avatar
  • 509
5 votes
2 answers
336 views

Can a block ever be empty?

The standard response is "no, the reward is at least one transaction." What about after there is no more reward?
Shamoon's user avatar
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