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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 ...


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

In addition to the technical factors mentioned by MCCCS, it's important to consider economical factors as well. If the problem being solved has value outside of the Bitcoin network, it allows miners to essentially "double dip" on the rewards - they earn both from the Bitcoin received as block rewards, as well as the incentive structure off chain. ...


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

The problem is that one can find a proof of work algorithm that gives a useful output. However, it may not stay useful forever. When the research is done, it will have to be replaced. When proof of work is replaced, years of research about ASIC designing for a specific algorithm is waster. The CPU => GPU => ASIC cycle starts again. In the first two ...


4

Firstly, correct me if I'm wrong. When a miner finds a solution for the block and broadcasts it to the other node, all the other nodes verify if it is a correct solution or not. It's very trivial to validate the PoW, just hash the block header and then count how many "leading zeros" that hash contains (note that such description is theoretical. ...


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 ...


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

I wonder why the proof-of-work under no circumstances may be usable. Proof of work is useful: it allows a network of untrusted participants to reach consensus without the need for a trusted party. As others have mentioned, making the work useful in other ways actually reduces this network security, as the cost of attack is subsidized by the external ...


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

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 ...


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

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 ...


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

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

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 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

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 ...


1

It's named "penalty transaction" by the specs :). Regarding your core question, you are right but this also requires this miner to be able to heal this block chain without a censored (the penalty) transaction. It therefore assumes that a single miner has more hashpower than the rest of the network combined. Thus it can be stated as such: The ...


1

Average interblock times is 10 minutes. Every 2016 blocks (2 weeks if the hashrate is constant) difficulty is readjusted. If you start mining much quicker, the interblock time of these two weeks will be less than 10 minutes and the difficulty will increase. The opposite is also true. The total hashrate is estimated using the average interblock times in a ...


1

The other answers do a good job of explaining how miners are compensated for their electricity (and other) costs. As the other answers point out, there are two ways that miners are compensated: block rewards and transaction fees. In real terms, the block rewards (which halve approximately every four years) are paid for by everyone holding bitcoin, as the ...


1

BrtH's answer is 100% correct, but does assume you don't need the waste heat. If you're already using electric heat (not heat pump, actual dumping of electricity through resistors) or gas heating at comparable prices to heat your dwelling space (perhaps because the ambient temperature outside is so low that heat pump can't operate; if it can work you'd be ...


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