Generating new bitcoins | Bitcointalksearch.org

notlist3d

legendary

Activity: 1456

Merit: 1000

Quote from: HCLivess on May 10, 2015, 07:51:59 PM

It is a reward for generating new blocks (validating transactions) by first competing with other miners.

The pool gains the current reward of 25 BTC + miners fee's paid for that block. So there is a little bit of varibility of exact amount the pool will get by solving the block.

And I used pool as a example as being solo is very very hard to get a block.

BlackMachine

full member

Activity: 208

Merit: 100

Quote from: lancet on May 10, 2015, 07:25:30 PM

I am new to bitcoins, so forgive me for asking something that is clear to everybody else. Do I understand it correctly that the source for the new bitcoins is service fees and mining of the trusted and appropriately equiped mining group?

Source for new Bitcoins is not the service fees. Service fee is a way to reward miner for mining for the network and they are circulated around. The new bitcoins generated is given by the system for every block mined and will be capped at 21 million bitcoins.

JarvisTechnology

sr. member

Activity: 350

Merit: 250

Quote from: lancet on May 10, 2015, 07:25:30 PM

I am new to bitcoins, so forgive me for asking something that is clear to everybody else. Do I understand it correctly that the source for the new bitcoins is service fees and mining of the trusted and appropriately equiped mining group?

Yes you are correct. although any one can technically mine bitcoins...whether or not they would benefit from them is another thing.

SirChiko

legendary

Activity: 966

Merit: 1000

Quote from: lancet on May 10, 2015, 07:25:30 PM

I am new to bitcoins, so forgive me for asking something that is clear to everybody else. Do I understand it correctly that the source for the new bitcoins is service fees and mining of the trusted and appropriately equiped mining group?

"mining group" seems like someone that has this role (sounds centralised lol) but actually anybody can become miner by their free will.

Muhammed Zakir

hero member

Activity: 560

Merit: 509

I prefer Zakir over Muhammed when mentioning me!

To avoid trust issue, Bitcoin is decentralized. I highly recommend you to read white paper. https://bitcoin.org/bitcoin.pdf

Quote from: Amph on May 11, 2015, 01:25:13 AM

every new block is generated after the previous reward is done, forming a chain as a result, only the first block, the one called geenesis, is different in this regard

Genesis not geenesis. https://en.bitcoin.it/wiki/Genesis_block

Quote from: Amph on May 11, 2015, 01:25:13 AM

about the trusting, isn't necessarily, true, no one know if miners are trustable, but usually a smart miner will not harm the network or it will hurt his income

"Smart" isn't appropriate here. Smart miner who want to harm network will harm network if he has enough hashrate to do so.

Amph

legendary

Activity: 3248

Merit: 1072

every new block is generated after the previous reward is done, forming a chain as a result, only the first block, the one called genesis, is different in this regard

about the trusting, isn't necessarily, true, no one know if miners are trustable, but usually a smart miner will not harm the network or it will hurt his income

p.s. "geenesis" was just a bad typo mate, i know that it is genesis....

HCLivess

legendary

Activity: 2114

Merit: 1090

=== NODE IS OK! ==

It is a reward for generating new blocks (validating transactions) by first competing with other miners.

ebliever

legendary

Activity: 1708

Merit: 1040

Hi! Rather than start from scratch, let me just point you to this helpful site:

http://www.coindesk.com/information/

Bitcoins are mined with each new block of transactions produced. Currently the block reward is 25 bitcoins, halving roughly every 4 years. Fees for transactions also go to the miners, but those are not new bitcoins but simply taken from bitcoins already in circulation. Blocks are produced on an average rate of every 10 minutes, though actual blocks can be a second apart or an hour apart based on the factor of chance in the mining process.

Miners are specialized hardware now (known as ASICs) that are operated by individuals or increasingly by large-scale industrial mining concerns. Anyone can get involved with mining, though in practice only those with very low cost electricity will likely see a profit. In years past you could mine with desktop computers, then graphics cards and FPGAs, but those days are long past.

lancet

newbie

Activity: 1

Merit: 0

I am new to bitcoins, so forgive me for asking something that is clear to everybody else. Do I understand it correctly that the source for the new bitcoins is service fees and mining of the trusted and appropriately equiped mining group?

Topic: Generating new bitcoins (Read 775 times)