1896: Ask Me Another

[Sparrow]

ELI5

i assume mining is where bitcoins originate. my understanding is there's a finite number of "answers," which keeps inflation under control (?) but is it a website? do you stumble on them? where and how do you search? how do you know you've found one? how do you transport it into your bitcoin wallet?

[flerchin]

Thanks Sparrow! I totally forgot about reddit explain like I'm five. They do have several good articles about Bitcoin.

Try this one

To answer your question in particular as quickly as I can. The math involved in Bitcoins is so hard that it takes computers a very long time to find one. So long that the electricity used by the computers often costs more than the value of the Bitcoin. When a coin is mined, it gets published to the rest of the Bitcoin network for verification and ownership is then assigned to the original miners wallet. There's other complications, but that's the gist.

[Keith]

Originally Posted by flerchin

Why doesn't everyone make a living at comedy podcasting ?

Because everyone doesn't have a skill for it. But you said how skilled you are at math, yet none of this money is interesting you.

I don't think you really understand it either.

I've learned that when something can't easily be explained, it's bullshit.

[flerchin]

There are currently 12 million Bitcoins, and the total ever mined will only be 21 million.

[Sparrow]

Originally Posted by flerchin

When a coin is mined

where are these equations that take computers so much time? where do they come from? are they on the internet? who created them? do they exist already? is everybody given the same one? by whom? how do you know you've found a coin? is there a particular piece of software you need to do the equating?


edit: from reddit

"Because producing these puzzles is an essential function of the network, we allow anyone who solves one to award themselves some new Bitcoins out of thin air."

if people can just give themselves out of thin air, doesn't that defeat this whole elaborate puzzle like safety chain thingy?

[Enunciated Piffle]

Bit coins are harrrrrrrd!

I've come to the conclusion I'd rather die poor.

[flerchin]

Originally Posted by Keith

Because everyone doesn't have a skill for it. But you said how skilled you are at math, yet none of this money is interesting you.

I don't think you really understand it either.

I've learned that when something can't easily be explained, it's bullshit.

Hey Man, calling me an asshole and a liar doesn't particularly motivate me to try and explain things for you.

We're friends on Facebook, you can see what I do for a living.

The work involved in mining bitcoins would be setting up complex computer networks and running them for long periods of time using high amounts of electricity. After it's setup, just watch and wait for the Bitcoins to roll in. Better hope that their value is more than the cost of equipment and power. Better hope that the government doesn't outlaw them. Better hope that the Chinese don't Fuck over the market. Better hope that you don't make a mistake, get hacked, and lose all your money. Better hope the exchange (Bitcoin bank) doesn't get hacked, outlawed, or just runs off with all of your money.

Also, the easier math problems are already solved, meaning the costs keep getting higher and higher.

Like I said, I don't do it because it would be boring, and risky.

[Enunciated Piffle]

THat makes sense.

[Keith]

Calm down. Everything's fine, flerchin.

[flerchin]

OK then.