Saturday, March 10, 2018

Is bitcoin mining a part of the bitcoin system?

We started with a discussion that there are still people who does not know about bitcoin so i started posting videos from online videos which were already shown to many viewers  ( my intention is more of sharing what they already have , i like their videos and believed in the content of videos) .  The videos shown  since i started with " what is bitcoin" and the other aspects which are all part of the basics which beginners should know about bitcoin. 

The next video is about mining ,  i do think this bitcoin mining is a very important part of the whole bitcoin system ; 

What is important in the discussion is the following ; 

1.  The bitcoin miners could be considered as accountants and miners because they do two jobs converting, authenticating bitcoin transactions and discovering new bitcoins . There are thousands of miners and with their computers share the job

2,. Miners are rewarded with a minimal transaction fees for their hard work . Transaction are registered on the blockchain . While transactions are registered in the blockchain the miners are somewhat playing the lotto for when they discover a new block the registered transaction and the block discovered are announced to the network of the bitcoin system

3. The different computers has a hash power , the more hashes the faster they can discover new blocks,  the difficulty of discovering a new block depends of the fastnest of the computers hash rate. One block is solved or discovered every 10 minutes , which means that bitcoin are discovered every 10 minutes until it reached 21 million and estimated to be done in 2140 . The amount of rewards will decreased by one half roughly every four years . One day no more bitcoins will be issued at that time transaction fees will replace new bitcoins as the reward for miners 

4. Mining is what keep bitcoin going and make it secure for everyone. 

The reward for miners was mentioned but it was not clear where do rewards come from ?  lets watch the video to know where it comes?

You know now where the rewards are coming !!

No comments:

Post a Comment