28

A device that consumes N watts of power (and doesn't output electricity or some other form of energy) will eventually produce N joules of heat per second. Thus, if your goal is converting electricity to heat, every piece of hardware that consumes electricity is 100% efficient. It's completely irrelevant what happens with that electricity before it becomes ...


26

Every time I have asked Bitcoin experts about buying a "cloud mining" account, that is, paying fiat money to a company for them to mine Bitcoin for me, I get the response that it's a scam. Most of them are scams because it's almost impossible to verify that your money is used for mining. You need to trust a company that can do anything with the ...


19

The difference is that with cloud mining, all you are doing is lending the company money. And you are expecting them, for no rational reason, to pay you back an interest rate higher than they would have to pay if they took out the worst loans in existence. In the case of cloud mining, literally everything is done by the company. All they are doing is ...


11

It may be practical to use a miner to provide some of the heat for your home, bringing some miners into your home during the cooler months and moving them elsewhere during summer. It's pretty much 100% efficient at converting electric energy into heat energy. (vs. a heat pump being about 300% efficient1, moving existing heat from outdoors as well). Even a ...


9

There's a couple of reasons I can think of: They might not think mining is profitable and are simply looking to sell hardware and treat BTC miners as a good target market, media attention probably means there's a lot of naive users that believe they can make huge profits by mining themselves. Once you scale up mining beyond a certain limit there can be ...


6

Heat Quality Not all heat is the same. The earth maintains a fairly constant average of 10 C near the surface, but you can't boil water with that. So the temperature of your heater makes a big difference for the uses you can apply it. If you want your hot water to get to 50 C, but your ASIC miner only generates 40 C of heat, then you are in for a tepid ...


4

Can a bitcoin miner be a good subtitute to a modern heather with the same power consumption ? A Bitcoin mining rig lacks certain features that are fairly desirable in a room heater. The main one is a thermostat. Even if it did, this would mean you would have to throttle back your Bitcoin miner as the room reaches some desired temperature. You would also ...


4

ASIC-resistance is a mirage. Application Specific Integrated Circuits (ASICs) are made to do one thing only and will always beat general purpose hardware. "General purpose computational devices like CPUs, GPUs, and even DRAM all make substantial compromises to their true potential in order to be useful for general computation." –David Vorick, &...


4

When that runs out, the system can support transaction fees if needed. Satoshi Nakamoto The fact that the subsidy (newly minted bitcoins) decreases does not mean that the overall reward that miners receive decreases too: they also collect the fee of all transactions they verify and these tend to increase with the use of the bitcoin network. Furthermore ...


4

Selling hardware is a less risky enterprise than mining bitcoin. The manufacturer knows exactly what their profit margins and unit costs etc are and has a more or less guaranteed result. People running miners do not.


3

It will be hard to find exact numbers, as GPU mining for Bitcoin has been completely obsolete since somewhere in 2013 when the first ASIC-based mining solutions appeared. Still, I wouldn't expect the CPU and GPU in a modern Macbook Pro to be able to mine faster than a few 100 million hashes per second. Even if we assume it can do 1 billion hashes per second (...


3

There is great difference for large companies between earning X money now or earning X + 20% in two years' time: The former lets them invest for the next miner without waiting years, because waiting a few years to continue innovating. Waiting a few years can cause them to lag behind their competitors for many more years to come. Besides, selling miners has ...


3

The downsides outweigh the upsides: as you mentioned this would require a hard fork, and would leave everyone (not just mining farms) who owns a Bitcoin miner with a very expensive paperweight, and as such it's unlikely a large enough portion of the community is willing to make the change for it to be successful. It would require throwing away a significant ...


3

Yes, it is possible to use the waste heat of a bitcoin miner (or any other computing device or other machinery) to heat your living space. The plan has some drawbacks and limitations: The temperature: These devices are efficient when they get like ~20C at the inlet and heat air to less than 40C. Trying to make them work at higher temperature may limit their ...


3

Who is paying for the running costs of Bitcoin? The primary costs are almost entirely paid by miners. Anyone else who runs any other sort of node (wallet etc) is likely to be also contributing by forwarding Bitcoin messages. They also pay a tiny amount of costs to sustain the network in terms of their own electricity costs, networking costs, capital assets (...


3

The people operating the mining hardware do. Mining hardware consumes electricity, so people who run the hardware receive an electricity bill from their electricity provider. They pay the bill using the proceeds from mining. Usually miners will sell some portion of the Bitcoin they earn for fiat, and pay for electricity using that fiat.


3

Every miner is working a on different block. While they share some of the same data, there are several parts of a block which are completely up to the miner to decide, and those differences make the blocks different. This also means that they have different hashes so every miner is searching a different part of the SHA256d search space. Although each of the ...


3

There are quite a few oportunities (or, at least, an impression of oportunities) to be more efficient miner than the mining hardware business themselves. You may have an access to cheaper (or free, or even stolen) electricity You may live in favorably cooler climate You may be one of those gambling types that just want to bet You may have enough (spare?) ...


2

The miners pay for the energy use directly, but the whole network pays indirectly. As @AndrewChow described, the miners provide a service to the network. They secure the ledger and provide the transaction ordering necessary for users to converge on a shared ground-truth. In exchange for this public service, the miners are reimbursed via block rewards. The ...


2

Market laws suggest that if said person would use his 1000x more efficient miner in any non-trivial scale, he would push other miners out of the market. The difficulty would steadily increase and other miners would be operating at a loss. So I guess the answer is yes, other people would notice if such thing happened.


2

When a channel is closed unilaterally, it requires two transactions by the closing party to move funds from a channel back into unilateral control. The closing party publishes their version of the commitment transaction to the network. The commitment transaction has a special condition for the closer's output. After the commitment transaction is included in ...


2

If you want to mine bitcoin then you should buy a bitcoin ASIC miner and run it yourself. Do the necessary research first. Almost all cloud mining services are scams. But there have been a (very) few that were not - although they were not profitable for customers. So there are two possibilities: You pay someone 1.0 BTC and they run off with your bitcoin. ...


2

Bitcoin nodes consider the chain with the most work the best chain. Whenever a miner finds a new block that extends the best chain, they broadcast it to the network and all nodes update their chaintip as they hear about it. Miners could ignore that new blocks are found, but this would not affect any other network participants. They could however instead ...


2

Bitcoin would be a very terrible currency if it could have it's value stolen by individuals running a piece of software on their CPUs. The expected return from thefts using the "large bitcoin collider" is zero, no matter how many people are running it and no matter how long they run it for.


1

While it's possible to estimate the current hashrate from the difficulty, they are two different measures. You can find an estimate for the global hashrate on the same site where you found the difficulty. The current estimate is 162 EH/s (162,000,000 TH/s). Using a similar approach as proposed by you, we can estimate an upper bound of 162,000,000 TH/s / 110 ...


1

Does the reward for Bitcoin increase/decrease when the price goes up and down? The reward for mining a bitcoin block is: (the current block subsidy) + (the fees from the included transations) = (the block reward) The block was originally 50 BTC, and this amount is cut in half every 210,000 blocks. At the time of writing, it is 6.25 BTC. The price is an ...


1

Yes, a cartel of hashrate +50% can ignore blocks and replace them with their own. The largest proof of work defines BTC which will be under the majority's control An example scenario for that could be when someone makes a transaction paying a 3 million in fees to the miner (unintentionally, possibly due to software error). In this case, it's very tempting ...


1

TLDR: The price of bitcoin determines how many miners are mining, not the other way around. Your last paragraph is on point! After a block halving, every miner unprofitable at the new reward will stop mining. They will stop mining because they need to pay for the electricity they burn. But for each miner that stops mining, the remaining miners become more ...


1

I suspect that miners submit their own transactions to the network like other users, but that they may prioritize them in their own blocks beyond what their feerate would merit. The blockspace is limited to 4,000,000 weight units. Generally, miners simply fill it with a selection of transactions that optimizes for highest total transaction fees collected. ...


1

If you found yourself in a situation where you owned a machine which, when running, would create a profit for you, what would you do? run that machine set up a business to rent the profits of running that machine to others The only way the second choice really makes sense, is if you rent it out for more money than you'd expect the machine to make for you ...


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