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Honest question: what is affected by the mining capacity? The speed of transactions? The price of transactions? The creation of new coins?
by dandare 8y ago
Honest question: what is affected by the mining capacity? The speed of transactions? The price of transactions? The creation of new coins?
- tim333 8y agoI'm hazy here and may be wrong but: When bitcoin started there was basically one computer mining and the difficulty level reflected that and the cost of a bitcoin was less than a cent. Now that there is billions of dollars worth of hardware dedicated to mining, the difficulty level goes up until the rate of block creation is one every 10 minutes. But now the 12.5 bitcoin reward every 10 min has to support billions in capital investment hence the price needed being higher, of the order of $2000. I guess if the price fell well below that to say $100 then there would be a lot of mining hardware repurposed or sold on eBay and we could get cheap graphics cards again. re The speed of transactions? The price of transactions? The creation of new coins? The speed remains about the same, the price of transactions tends to go up, the creation of new coins is not effected as it is hard coded in the bitcoin software. (https://www.anythingcrypto.com/guides/bitcoin-mining-block-rewards-2018 https://www.anythingcrypto.com/guides/bitcoin-mining-block-r...)
- ehrtt 8y agoSecurity against double spends.
- Nursie 8y ago> what is affected by the mining capacity? The speed of transactions? The price of transactions? The creation of new coins? None of the above. More miners means more people splitting the block rewards, and more network security against 51% attacks. Literally nothing else is affected.