Hardware when you solve a bitcoin problem where do the bitcoin come from

Dominator211

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I have heard about bitcoin but I haven't gotten into it until today.... a family member wants to know the question above... and can't seem to find a concrete answer to this question... also since i am under 18 is it illegal for me to mine bitcoin if I were to start?
 

brunocar

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look, if you want to buy bitcoin you are 3 years late, sorry kid.
as for your question, well, you answered it yourself, what happens when you solve an mathematical problem? you get a result, that result is your unique bitcoin, you created it.
 
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Dominator211

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look, if you want to buy bitcoin you are 3 years late, sorry kid.
as for your question, well, you answered it yourself, what happens when you solve an mathematical problem? you get a result, that result is your unique bitcoin, you created it.
is it legal for me too mine
bitcoin.... i dont have money to mine.... a colleague of mine he started in 8th grade and was one of the decisions he ever made
 

brunocar

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is it legal for me too mine
bitcoin.... i dont have money to mine.... a colleague of mine he started in 8th grade and was one of the decisions he ever made
getting into bitcoin no is like getting to the housing market in '08, its financial suicide, bitcoin's bubble is about to burst, thats why everybody is selling.
btw, of course mining is legal, but due to the way bitcoin's work, most crypto currencies for that matter, the more of it there is, the harder it is to make, so the more computer power you are gonna need.
 
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Dominator211

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getting into bitcoin no is like getting to the housing market in '08, its financial suicide, bitcoin's bubble is about to burst, thats why everybody is selling.
btw, of course mining is legal, but due to the way bitcoin's work, most crypto currencies for that matter, the more of it there is, the harder it is to make, so the more computer power you are gonna need.
well i guess i should stay out of it untill the bublle bursts
 

brunocar

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well i guess i should stay out of it untill the bublle bursts
while i cant predict the future, after the bubble bursts, there may be a complete lose of value of bitcoins, i think it has too much competition to survive the burst of the bubble, but leave your options open and NEVER SPEND MONEY YOU DONT HAVE, only disposable income.
 

dAVID_

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What's this "BitCoin is a bubble about to burst"? On what basis can you make that assumption?
The media is just trying to give BitCoin a bad reputation, because BitCoin is a currency that is
decentralized, which is exactly what the governement doesn't want. They're saying that "it's
a bubble" "it's going to explode" so nobody not knowing any better doesn't buy BitCoin. Maybe it
does burst, maybe I'm wrong, but nobody can say for sure.
 
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TotalInsanity4

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I have heard about bitcoin but I haven't gotten into it until today.... a family member wants to know the question above... and can't seem to find a concrete answer to this question... also since i am under 18 is it illegal for me to mine bitcoin if I were to start?
It is not illegal, but it won't be profitable

Basically, think of it this way; when "mining" you put your device onto a network called the Blockchain. The purpose of the Blockchain is to a) keep an updated list of every transaction that has ever taken place in the history of Bitcoin, and b) check the math of any new transactions to make sure they're valid. As more Bitcoin exist, the algorithms for every transaction get more complex to compensate. Because of this, computers that are part of the Blockchain will need to be more powerful to solve them.

As for where new Bitcoins come from, there are a limited amount of Bitcoin that can be minted, which are, again, controlled by the network. By adding your computer to the Blockchain and helping it moderate transactions, it rewards you with newly minted Bitcoins proportional to the amount of work you did
 

weatMod

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It is not illegal, but it won't be profitable

Basically, think of it this way; when "mining" you put your device onto a network called the Blockchain. The purpose of the Blockchain is to a) keep an updated list of every transaction that has ever taken place in the history of Bitcoin, and b) check the math of any new transactions to make sure they're valid. As more Bitcoin exist, the algorithms for every transaction get more complex to compensate. Because of this, computers that are part of the Blockchain will need to be more powerful to solve them.

As for where new Bitcoins come from, there are a limited amount of Bitcoin that can be minted, which are, again, controlled by the network. By adding your computer to the Blockchain and helping it moderate transactions, it rewards you with newly minted Bitcoins proportional to the amount of work you did

"As more Bitcoin exist"

wait i thought that there were only a finite number of coins?
i thought the algorithms got more complex due to the ever growing number of transactions the blockchain needs to keep track of and not because of creation of new coin
 

dAVID_

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There are two ways to make BitCoin profitable:

1. Investing in BitCoin: Buy a BitCoin, sell it once the price goes up. People that have done this when a BitCoin was worth $1 are now millionaires. It's a high risk high reward buisness.
2. BitCoin mining: As TotalInsanity mentioned, users can "mine" BitCoin. CPU and GPU are long obsolete, and only ASIC mining can generate a good ammount of profit. You need to invest a LOT to make profit from mining, as well as having low electricity costs or free electricity (like China).
Also, the max number of BitCoins is 20.999 million of them, and it's predicted that the last batch will be mined in the 22nd century.
 
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TotalInsanity4

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"As more Bitcoin exist"

wait i thought that there were only a finite number of coins?
i thought the algorithms got more complex due to the ever growing number of transactions the blockchain needs to keep track of and not because of creation of new coin
Right, guess I could've been clearer about that
 
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brunocar

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What's this "BitCoin is a bubble about to burst"? On what basis can you make that assumption?
The media is just trying to give BitCoin a bad reputation, because BitCoin is a currency that is
decentralized, which is exactly what the governement doesn't want. They're saying that "it's
a bubble" "it's going to explode" so nobody not knowing any better doesn't buy BitCoin. Maybe it
does burst, maybe I'm wrong, but nobody can say for sure.
*sigh* do you even know how economies work? take the crash of the value of housing during the first part of '08, it was at an all time high, couple of months later and the US is on deep trouble because of the bubble bursting.
look, i apreciate decentralized currency as much as the next guy, but you cant blindly support anything and give it all your money, the fact is that once the rich asshats with the most bitcoins pull out, well, down goes the bitcoin, maybe it'll recover, but who knows.
 

Pleng

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look, if you want to buy bitcoin you are 3 years late, sorry kid

Or 1 year too late, or 6 months too late, or 2 months too late...

Because if you'd purchased at any of these times then you'd have still made a healthy profit... Anywhere from about 70%-1700%.

Yes I agree that it's probably going to burst some day as it's essentially unfit for purpose... But there's no telling when that day will be... Could be next week, could be a couple of years down the line. For people with money to spare that they can afford to lose if it all goes wrong, it's a much better gamble that horses or fruit machines...
 
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dAVID_

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*sigh* do you even know how economies work? take the crash of the value of housing during the first part of '08, it was at an all time high, couple of months later and the US is on deep trouble because of the bubble bursting.
look, i apreciate decentralized currency as much as the next guy, but you cant blindly support anything and give it all your money, the fact is that once the rich asshats with the most bitcoins pull out, well, down goes the bitcoin, maybe it'll recover, but who knows.

Do you even know what caused the '08 crash?
 

brunocar

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There are two ways to make BitCoin profitable:

1. Investing in BitCoin: Buy a BitCoin, sell it once the price goes up. People that have done this when a BitCoin was worth $1 are now millionaires. It's a high risk high reward buisness.
2. BitCoin mining: As TotalInsanity mentioned, users can "mine" BitCoin. CPU and GPU are long obsolete, and only ASIC mining can generate a good ammount of profit. You need to invest a LOT to make profit from mining, as well as having low electricity costs or free electricity (like China).
Also, the max number of BitCoins is 20.999 million of them, and it's predicted that the last batch will be mined in the 22nd century.
you do know bitcoin isnt the only cryptocurrency, right? right now mining bitcoin, as you said, is impossible to make a profit out of, but buying is a dumb risk, might as well buy etherium or some other CC

--------------------- MERGED ---------------------------

Do you even know what caused the '08 crash?
took 2 seconds to google: https://en.wikipedia.org/wiki/United_States_housing_bubble
there is a whole movie made about it
 

gman666

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No one knows whether bitcoin will crash today tomorrow or at all.. It shows signs of a market that is about to crash (Insanely high increase within minimal time) and a lot of people are interested in it. If you're interested in it, keep these wise words in mind, "Be fearful when others are greedy, be greedy when others are fearful". Research more about cryptocurrencies and make a decision from what you learned.
 
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raystriker

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(kinda off topic?)
The way I see it, bitcoin was something we nerds/geeks were into around 2011. The current hype you see is all marketing and 'business' people voicing their opinions once it actually gained serious momentum. The way I see it, we have no way to know where all of it will go. Feel free to correct me.

Anything you do right now is as good as gambling.
 
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brunocar

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isnt bitcoin slowly dying?

No one knows whether bitcoin will crash today tomorrow or at all.. It shows signs of a market that is about to crash (Insanely high increase within minimal time) and a lot of people are interested in it. If you're interested in it, keep these wise words in mind, "Be fearful when others are greedy, be greedy when others are fearful". Research more about cryptocurrencies and make a decision from what you learned.

this is exactly what im saying
 

duffmmann

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I mean I'm not very smart when it comes to economics, but even with the limited knowledge I have in the field and the trends I've seen surrounding bitcoin, it isn't hard to see that something is gonna give relatively soon with the cryptocurrency. I mean I would have sold long ago if I had any, but I'd definitely be selling now if somehow I did hold on to it until now.
 
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