7 ms·
You assume they're all paying for the power. Once you remove that assumption, it makes more sense.
by deciplex 13y ago
You assume they're all paying for the power. Once you remove that assumption, it makes more sense.
- BobMarin 13y agoThe reason is much more Machiavellian, namely if you keep the price of entry high and you loose money to mine for 80% of the time then the 20% of the time that it's extremely profitable you have a bigger multiple since the competition is weaker then it would've been otherwise.
- knodi123 13y agois mining competitive, though?
- eurleif 13y agoAbsolutely. A fixed reward (25 BTC) is rewarded each time a block is mined. Each block is based on the prior blocks in the chain, so when one miner mines a block, all the other miners must start over. Blocks are mined on average once every ten minutes, so basically, a random miner is selected approximately once every ten minutes to receive a reward.
- hueving 13y agoSaying they have to start over is implying that you're somehow making progress. The only progress your are making is just ruling out a few inputs from a massive search space. You don't really lose any work when it resets because the work you've done is useless.