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Confusing question...... Bitcoin related.
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Confusing question...... Bitcoin related.Posted:

Cowgirls
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My question about bitcoins or any crypto currencies for that matter is who is paying you to mine for them, like why is it valuable for your computer to do those algorithms called mining that produce money? Like who is paying for your computers computing powers. I just don't understand how that produces money. I've read the Wiki pages and other informative sites about bitcoins but they don't seem to answer this question. I guess its just not asked often.

The following 1 user thanked Cowgirls for this useful post:

Omastuh (05-06-2015)
#2. Posted:
Omastuh
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I would like the answer to this as well if anybody knows
#3. Posted:
Midtown
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Let me save you a bunch of time and worries; Don't invest in Bitcoin unless you're a regular on the deep web.
#4. Posted:
Bullets
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-VICE wrote Let me save you a bunch of time and worries; Don't invest in Bitcoin unless you're a regular on the deep web.
That was fairly foolish to say.
Bitcoin isn't only useful for the deep web, whether you're investing or not.

On topic; basically you are "mining" coins, if that makes sense to you. You are solving "math" problems and when you solve, you are rewarded.

I don't know how else to explain it, it's pretty straight forward imo.
#5. Posted:
xDustyx
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If i understood correctly you calculate different Problems for other People. Basically they are Outsourcing their work to you. They then pay you for calculating their Problems.
#6. Posted:
r00t
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Bitcoin "mining" is the process of validating Bitcoin transactions. Transactions from a certain period of time are grouped into a block. If you're mining alone, you have to have access to every previous block, called the blockchain, which is about 35GB right now.

You have to know what a cryptographic hash function is to understand how mining works. These functions make it practically impossible to determine what the input was based on the output hash value. Any change in the input will result in a completely different hash value and an input of any length will result in an output of a fixed length. SHA-256 is used for Bitcoin and has 256 bits of data.

Basically, you're doing calculations that validate and secure Bitcoin exchanges.

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