Topic: Importance of miners (Read 234 times)

I don't believe that this is true. The 21 million "coins" were created when the genesis block was laid, and there is no possibility of any more being created. Miners perform a number od SHA256 calculations, and when they discover a result that satisfies the current requirements, they are able to create  block which is added to the blockchain. They are rewarded for their work by being able to claim a few coins from the unallocated pool of Bitcoin ( and the transaction fees for the transactions included in their block). Were miners able to create new coins, then there would be no 21 million cap, and no halving of the reward in my opinion.

I agree. The OP seems to lack some understanding, or perhaps simply does not speak English well enough.

As for the "puzzle" term, I think "puzzle" is an accurate term, though it might be misleading and not the best term. It is also frequently described as a "complex mathematical problem", which I think is better though not by much.

Here is the "puzzle" (slightly simplified):


Even though there is no known method of "solving" the puzzle other than brute-force guessing, it can still be considered to be a puzzle.

OP's comment is just weird! i don't know why he even started this topic when he is not even familiar with mining. your comment is better, i just wanted to add this.
i personally don't like calling mining a "puzzle". there is no puzzle. it is the common hash function (SHA256) that you perform multiple times until you satisfy a condition!

as for new coins, miners do technically create bitcoin! when a miner finds a new block he is awarded by newly created coins which is a fixed amount (currently 12.5BTC) in other words they "create" a new transaction known as coinbase transaction which pays them this newly generated coins. it is not out of thin air, it is the design of bitcoin to distribute the 21 million supply in this manner.

Threre no such thing as rank disparity in mining,its simply based on computing power,if we're to go back to 2009,then anyone could attempt mining from his/her laptop,but with the gradual development of the system,so also it became more difficult to mine, huge electricity,mammoth capital, mining rig and so on and so forth that costs a fortune
Bitcoin is obviously digital,and isn't physical in anyway,what miners do is,when an order is placed by a customer,its the duty of miners to confirm this transaction and move it over to another block, and they do this but solving a cryptographic puzzle,and the first miner to solve this puzzle is rewarded with bitcoin from thin air/transaction fees
 
The 21mln bitcoin has already been programmed,so when a miner successfully confirms a transaction,he/she gets rewarded(they do not technically create bitcoins)

Don't forget to mention which hardware (Bitmain products,GPUs,FPGA) can be used by Miners.

Who is a miner? What is the importance of a miner? Although the answers to these questions are comprehensible for those that has been in cryptocurrency for a while but it's still not clear to newbies

  Who are miners and how do they work
  Cryptocurrency is a decentralized system which is it not under regulation so there is a possibility for blockchain technology to be misused my users some might take the advantage of the decentralized system to perpetrate illicit transcations. A miners doesn't necessarily have to be a cryptocurrency gray hair even a newbie can become a miner. Like with other government control currency where they can control and determine how much is printed and in circulation. This is not the case in cryptocurrency because it not under any governmental circulations.

So you would ask how does coins like bitcoin come about and what controls it price?
To become a cryptocurrency miner you would need to put together a mathematical puzzle using soft ware for example in bitcoin the puzzle made by satoshi Nakamoto where you get bitcoin after solving the puzzle.
This way bitcoin are mined and are in circulation. There are 21million BTC available for mining and china has the highest percentage of mining are there are some statics that it might be mined up in future

   How does the work of a miner affect the price
The price of a commodity is affected by demand and supply. If the demand is high and the supply is low the price goes up but if the reverse is the case then the price drops. So if miners has been able to mining more bitcoin for example there will be enough bitcoin in circulation and if not the circulation of bitcoin will reduce.

So mining in cryptocurrency is a very important aspect of cryptocurrency and trading