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how it is different to mine your own bitcoins rather than buying from market? Who decides and based upon what factors - how many coins you can mine?
by mandeepj 12y ago
how it is different to mine your own bitcoins rather than buying from market? Who decides and based upon what factors - how many coins you can mine?
- arg01 12y agoTo simplify: Bitcoin miners race to discover a code that gives them 50 bitcoins. This code gets harder to find each time it is found. This decision is pre-baked in using the bitcoin system (other e-currencies have different traits.) If you join a mining pool then you split the 50 coins with everyone else in the pool (and they'll split with you) if you are the lucky machine than found the code. The analogy is pretty direct: mining is the same as going and doing work to dig up gold, buying from the market is the same as buying gold in the market.
- jc123 12y agoThe current coinbase reward is 25, not 50, bitcoins. Halves every 4 years.
- jc123 12y agoMining bitcoins is a hardware arms race that will be very hard for new entrants to join unless they are willing to spend a lot.