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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206 votes
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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
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
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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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
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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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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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
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
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
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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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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15 votes
9 answers
1k views

Why is Bitcoin fair?

According to the Wikipedia article on Bitcoin: The initial bitcoin distribution is advantageous towards early-adopters. [...] However, the amount of work that must be done for one bitcoin is ...
Jason's user avatar
  • 171
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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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
13 votes
3 answers
7k views

When, if ever, will "peak bitcoin" occur?

My (limited) understanding of bitcoin and other cryptocurrencies is that the costs of "mining" bitcoins was quite low in the early days, and the limiting factor in how fast they were mined ...
Michael Seifert'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
  • 321
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
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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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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
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
  • 1,754
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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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
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
  • 7,042
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
2 answers
804 views

Is it possible to "unmine" particular coins?

Imagine that a government seizes a large amount of bitcoins in a raid such as with "Silk Road". Is it possible to invalidate those particular coins and send them back to the "pool" to be re-mined so ...
Shane Maness'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
  • 803
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
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
  • 83
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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7 votes
3 answers
14k views

Who currently pays the miners for processing transactions?

The graph: Bitcoin mining cost per transaction leaves an ambiguity. Who pays the transaction costs?
Dale's user avatar
  • 327
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
7 votes
3 answers
384 views

What is the reason for halving the rewards?

What is the reasons for halving the rewards? Why not, for example, let the reward be always the same and the amount of currency always growing? Are the reasons technical or just purely ideological?
Karel Bílek's user avatar
  • 2,685
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
  • 183
7 votes
3 answers
6k views

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
1 answer
4k views

Coinbase maturity of 100 transactions [duplicate]

The protocol rules state that For each input, if the referenced output transaction is coinbase (i.e. only 1 input, with hash=0, n=-1), it must have at least COINBASE_MATURITY (100) ...
Randomblue's user avatar
7 votes
1 answer
426 views

Why would a Bitcoin miner take less than the full reward?

In "Mastering Bitcoin", the author notes (source): The maximum number of coins mined is the upper limit of possible mining rewards for bitcoin. In practice, a miner may intentionally mine a block ...
Kostas's user avatar
  • 183
7 votes
1 answer
1k views

When is the Bitcoin payout for solving a block going to change?

When is the Bitcoin payout for solving a block going to change? What happens when overnight it is half as profitable to process a block?
shoeless joe's user avatar
  • 2,267
7 votes
1 answer
650 views

Are there any projections about when transaction fees per block will equal block reward?

A spreadsheet with a base projection and the following editable variables (for a given block height) would be great: BTC transaction volume per block Number of transaction per block Average ...
opensourceprivacy's user avatar
6 votes
2 answers
3k views

Must a Block contain a coinbase transaction?

Must a block contain a coinbase transaction? If so, how is this enforced?
Kinnard Hockenhull's user avatar
6 votes
2 answers
3k views

How did Satoshi manage to mine so many bitcoins being the first user of the system?

I'm just learning about Bitcoin and if I understand its conception properly, mining bitcoins means validation of transactions by computing a hash which should satisfy some preset condition. In other ...
user avatar
6 votes
2 answers
850 views

Why are coinbase transaction outputs greater than reward?

If the sum of the coinbase transaction's outputs must be less than or equal to the current reward (25 btc currently), why in practice do blocks have a slightly higher coinbase transaction output (for ...
Roy Hu's user avatar
  • 63
6 votes
3 answers
1k views

Cryptocurrency with less deflationary properties

I wonder what is the benefit of having Bitcoin reduce the coins mined per block over time? Suppose a slightly less deflationary growth scheme was possible (and keep other properties that make Bitcoin ...
lurscher's user avatar
  • 211
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
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
6 votes
1 answer
6k views

Could Hadoop be used as a mining pool architecture? [closed]

The context is here I don't know how exactly the new blockchain candidate was calculated in Bitcoin Network, so I guess it was based on a Merkle candidate of (a) bitcoin client/s. Also I presume that ...
einzeln00's user avatar
6 votes
2 answers
5k views

How can I tell when bitcoind has found a block?

I'm using the traditional bitcoind -gen on the testnet to mine some test bitcoins. I did this on one machine for a few hours, and stopped when I found a faucet. Later though, I magically obtained 50 ...
Earlz's user avatar
  • 1,130
6 votes
3 answers
379 views

Bitcoin-related bounties

What is the most common way for one to announce new Bitcoin-related bounties in the community? Is there some website that mediates in the process, or is everything done through the Bitcoin forum?
ThePiachu's user avatar
  • 43.1k
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
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
5 votes
3 answers
913 views

How to calculate coin supply at each block height from all transactions?

We are working on a small project and imported all block information to mongoDB. Right now we're aiming to calculate the coin supply regarding to the block number. My plan is to loop through all ...
pr0logas's user avatar
  • 180

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