What is Bitcoin Mining & How Does It Work? The Complete Guide
What is Bitcoin Mining & How Does It Work? The Complete Guide
Bitcoin Mining Explained - How To Start Mining Bitcoins
Bitcoin Mining Definition - investopedia.com
ELI5 Bitcoin Mining – Explain Bitcoin Mining Like I’m Five
What is Bitcoin Mining? A Step-by-Step Guide HuffPost
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Bitcoin is an internet based decentralised currency. Similarly to Bittorrent, but Bitcoin uses a public ledger called the blockchain to record who has sent and received money. It's very new, and for many very confusing. BitcoinHelp aims to rectify this. Whether it be explaining how it works, how to use it, how to buy Bitcoins, how to integrate Bitcoins into your business. Sharing your successes as well as failures in order to help others is also gladly received. Ask away!
Here is how to explain Bitcoin mining principles to your mother
I'm operating a Bitcoin center in Paris, and I have everyday to explain mining to all kind of different people, most of them absolutely not tech savvy. I know the following is absolutely not a correct representation of the real mining process, but it is a good enough image to make people understand. Bitcoin is a public ledger, replicated on thousands on computers (called nodes) using the Internet. When a new transaction is broadcasted, nodes check if it is correct and that funds are available. Each node vote "correct" or "incorrect", and the majority wins. However, faking a node is very easy ; you could write a program simulating thousands of nodes and easily gaining voting majority. Bitcoin wouldn't then be secure. The solution : proof of work. Imagine you are a node, and you have your ballot paper in hand. But the voting box is behind a door locked by a combination of 4 digits. Of course you don't know the code, and it changes after each ballot. So you have to try all combination to open the door. It may take 10 minutes of you are lucky, or hours. When you open the door, you can write the code on the enveloppe and then put your vote in the box. By providing the code, you allow the network to check itself the combination (very quickly), so it is sure you didn't cheat (breaking the door, etc). This is called a proof of work. And the only way to solve it is to provide brute force work, which is costly in time and energy. And the more nodes there are, the more digits the combination has. Therefore, the only way to attack Bitcoin is to have a lot of real nodes trying all combinations, and this comes with a heavy price. TLDR : mining is like computer voting and the majority wins. However to put your ballot paper in the box, you must open a door protected by a 4 digits lock ; only way is to try all possible combinations. This is a "proof of work", can't be cheated, and that's why Bitcoin is secure.
Best analogy to use to explain Bitcoin mining to beginners?
What's the best analogy to use to explain the concept of Bitcoin mining to laymen? Weusecoins.com say "Bitcoin mining is a lot like a giant lottery where you compete with your mining hardware with everyone on the network to earn bitcoins." But is there something a bit clearer and easy to understand as even that makes little sense to me! Sorry if I'm posting in the wrong place or something - new to reddit, newish to Bitcoin...
Help! We need a better way of explaining bitcoin mining to the average Joe.
Can we crowdsource a better explanation of bitcoin mining than the one I keep reading in the MSM? The articles I have read refer to Bitcoin being mined by "computers that solve complex mathematical puzzles." While technically true, it makes Bitcoin seems more like Sci-Fi than revolutionary innovation. We need something for the non-hacker. What are the best one line explanations you have read or created yourselves?
Tried explaining bitcoin mining to my dad - got a question I don't know how to answer?
Hi Guys. The situation is as follows - my dad was interested in the whole Bitcoin thing and mining. He owns a medium size company, operates lot of heavy machinery which uses tons of electricity and gets massive discounts for it thanks to this, so I tried to explain to him how he could invest in a few mining rigs since cost of running them is not an issue and from what I understand a few 3xGPU computers could mine at least a few bitcoins per day?(tell me if I am stupid straight away) Well in any case - his question was as follows - if you can make money just by running your computer 24/7, what stops him or any other company from getting a massive wireframe with dozens of GPUs and just making money that way(apart from legal reasons)? Since you are making profit, ANY investement will pay itself off sooner or later, and the more you invest,the faster you mine, so I guess you could invest $100k in hardware and mine hundreds of bitcoins per day - or it that not possible? I wanted to answer this....but I couldn't. I just don't know. Is mining something that is profitable only right now since BTC is so expensive? Is it not worth doing if it drops below $100, $50 or $20? How would you answer such a question?
Bitcoin mining is making computers do complex math problems to help run the Bitcoin network, and miners are paid with bitcoin for contributing. Bitcoin mining itself is the process of adding new bitcoin transactions to the blockchain – the public ledger of all bitcoin transactions. A new block of bitcoin transactions is added to blockchain every 10 minutes and has been since bitcoin was ... Bitcoin was invented in 2009 by a person (or group) who called himself Satoshi Nakamoto. His stated goal was to create "a new electronic cash system" that was "completely decentralized with no ... Bitcoin mining requires a computer and a special program. Miners will use this program and a lot of computer resources to compete with other miners in solving complicated mathematical problems. About every ten minutes, they will try to solve a block that has the latest transaction data in it, using cryptographic hash functions. What are Hash Functions? A cryptographic hash function is an ... ELI5 Bitcoin Mining – Explain Bitcoin Mining Like I’m Five. Bitcoin Mining requires powerful computational power. It is possible to mine Bitcoin with some powerful GPUs, but to be most competitive in the mining game, a specialized ASICs mining rig is recommended. Whether it’s a GPU mining rig, or an ASICs mining device the mining hardware will be connected to the Bitcoin Network ... Bitcoin mining is done by specialized computers. The role of miners is to secure the network and to process every Bitcoin transaction. Miners achieve this by solving a computational problem which allows them to chain together blocks of transactions (hence Bitcoin’s famous “blockchain”).. For this service, miners are rewarded with newly-created Bitcoins and transaction fees.
How does Bitcoin mining work? - BBC Newsnight - YouTube
Some Helpful Links: • Buy Parts for a Mining Rig: http://amzn.to/2jSSsCz • Download NiceHash Miner: https://www.nicehash.com/?p=nhmintro • Choose a Wallet: h... We are miners from 2013 looking to create community and help train and learn together as blockchain tech changes so quickly. Leave your thoughts in the comme... For more information: https://www.bitcoinmining.com and https://www.weusecoins.com What is Bitcoin Mining? Have you ever wondered how Bitcoin is generated? T... David Grossman enters a cryptocurrency maze to find out how powerful computers mine digital currencies such as Bitcoin. Newsnight is the BBC's flagship news ... If you've ever wondered how Bitcoin really works and what the potential risks are, you're in the right place. Subscribe to TheHub http://goo.gl/87YJzG Have y...