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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191
votes
8answers
112k 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.
126
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7answers
50k 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 ...
65
votes
9answers
90k 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?
34
votes
2answers
13k 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 ...
156
votes
4answers
261k 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 ...
65
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11answers
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 ...
126
votes
10answers
44k 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 ...
42
votes
5answers
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 ...
10
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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 ...
12
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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 ...
8
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3answers
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 ...
7
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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 ...
23
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3answers
4k 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 ...
14
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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 ...
7
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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 ...
12
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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 ...
9
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2answers
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?
17
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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-...
6
votes
1answer
762 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 ...
2
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2answers
263 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 ...
4
votes
2answers
452 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 ...
15
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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 ...
1
vote
1answer
78 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 ...
8
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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?
7
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1answer
2k 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 ...
7
votes
3answers
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 ...
9
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
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5answers
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?
2
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1answer
550 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 ...
1
vote
1answer
677 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 ...
1
vote
1answer
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. ...
3
votes
1answer
12k 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 ...
1
vote
1answer
470 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 ...
1
vote
1answer
963 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 ...
0
votes
1answer
104 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 ...
11
votes
2answers
5k 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 ...
5
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3answers
123k 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?
10
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2answers
29k 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?
5
votes
3answers
524 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 "...
3
votes
2answers
877 views

What happens to the mining reward if the blocks gets replaced?

When a block is added to the blockchain, the miner gets rewarded. But what would happen to the mining reward if the network replaced the block's branch with another because the latter is longer? If it ...
3
votes
6answers
9k views

Who issues bitcoins and how?

I can't find information on who actually issues the bitcoins. I understand that miners generate new bitcoins but what party is responsible for issuance?
2
votes
1answer
407 views

Mining on Pegged Side Chains

How would mining, theoretically, work in Pegged Side chains? If mining can be done on these side chains, then it seems like too many coins could be created. And once they were used in transactions, ...
2
votes
1answer
352 views

Verification of transaction once trasaction is broadcasted

I have few doubts regarding verification of transaction and am trying to find answers from last few days. I agree similar post exist in this portal but I am not getting satisfactory answer for my ...
8
votes
3answers
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?
6
votes
3answers
576 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 ...
4
votes
3answers
2k views

Why is the reward decreasing while the difficulty of mining is increasing?

I was wondering why Bitcoin has been designed in a way that rewards are decreasing while the difficulty of mining is increasing. To me this is counter-intuitive and leads to the situation when miners ...
2
votes
4answers
1k views

Does the block reward comes from a bitcoin treasury? If yes, then how is it issued?

The miner adds the relevant block reward to himself (i.e. 12.5 bitcoin as of now) in something called the coinbase transaction. Where do these 12.5 bitcoins come from? Does it comes from bitcoin ...
2
votes
1answer
2k views

Why must generated coins mature 120 blocks before they can be spent?

I mine bitcoin testnet blocks and I find some blocks with difficulty 1. Some examples: I mined these blocks: Block 1 Block 2 Why must generated coins mature 120 blocks before they can be spent?
5
votes
2answers
871 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 ...
5
votes
2answers
305 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?