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Questions tagged [mining-reward]

This tag should be used for questions about the revenue generated by mining. 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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176
votes
8answers
107k 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.
137
votes
4answers
227k 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 ...
120
votes
8answers
49k 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 ...
118
votes
10answers
41k 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 ...
64
votes
9answers
82k 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?
61
votes
11answers
10k 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 ...
41
votes
5answers
26k 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 ...
31
votes
2answers
11k 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 ...
25
votes
3answers
76k views

When will the last Bitcoin be mined?

Estimates have been thrown around a lot recently as to the year in which the last Bitcoin will be mined- where are these estimates coming from? Could someone send me to the relevant code?
22
votes
3answers
3k 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 ...
15
votes
1answer
1k 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-...
15
votes
3answers
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 ...
14
votes
9answers
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 ...
13
votes
4answers
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 ...
12
votes
4answers
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 ...
12
votes
3answers
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 ...
10
votes
2answers
3k 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 ...
9
votes
2answers
4k 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 ...
8
votes
3answers
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. ...
8
votes
5answers
3k 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?
8
votes
2answers
775 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 ...
8
votes
2answers
25k 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?
8
votes
1answer
7k 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?
8
votes
1answer
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?
8
votes
3answers
14k 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?
8
votes
3answers
5k 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 ...
7
votes
4answers
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 ...
7
votes
3answers
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 ...
7
votes
3answers
317 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?
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 ...
7
votes
1answer
270 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 ...
7
votes
1answer
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?
7
votes
1answer
614 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 ...
6
votes
3answers
895 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 ...
6
votes
1answer
666 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 ...
6
votes
3answers
459 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 ...
6
votes
1answer
5k 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 ...
6
votes
2answers
4k 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 ...
6
votes
3answers
369 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?
5
votes
4answers
62k views

How does solving math problems create bitcoins? [duplicate]

If I understand correctly, Bitcoin mining software "creates" bitcoins by solving complex mathematical equations. Is there a need for these problems to be solved, is there a value to solving these ...
5
votes
3answers
4k views

Who currently pays the miners for processing transactions?

The graph: Bitcoin mining cost per transaction leaves an ambiguity. Who pays the transaction costs?
5
votes
3answers
116k 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?
5
votes
2answers
3k views

Must a Block contain a coinbase transaction?

Must a block contain a coinbase transaction? If so, how is this enforced?
5
votes
4answers
510 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 ...
5
votes
1answer
1k 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 ...
5
votes
3answers
505 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 "...
5
votes
2answers
1k views

How much money is being doled out in fees for every block right now?

Every time I see a calculation of the profitability of mining taking in account your hardware and the number of Hash/s it does and subtracting energy costs and then the probability of finding a share ...
5
votes
1answer
145 views

How does a miner create a transaction input to spend tx fees?

I'm wondering where does a miner get an input for a transaction that spends the tx fees received from mining a block? It's not out of the coinbase transaction.
5
votes
1answer
45 views

Without side chains will transaction fees rise as block rewards fall?

Transaction fees are currently minuscule when compared to block rewards. Even if transaction volume was 10x higher than it is now, this would be the case. Is there any realistic scenario where ...
5
votes
2answers
293 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?