i have heard this but i get conflicting information when i ask what the bitcoin mining actually does. so when mining a bitcoin what are people actually doing with their computers? what is the energy exchanged for? is it just burning power for the sake of it? that would have the same value as burning houses for currency and is retarded. So what is that computing power actually being used for? do they utilize collective computer power to process information? that makes sense and would give bitcoin some intrinsic value but that is what i have deduced personally, not what anyone who promotes bitcoin has told me.
As far as I understand it, the bitcoins that have not yet been mined are encrypted; The complexity of the encryption increases as more bitcoins are mined, meaning more computing power is needed for the same amount of bitcoins as more bitcoins are mined. This means the amount of money it costs to mine a bitcoin increases with time, thus increasing the value of newly mined bitcoins.
Miners form networks together in order to collectively attempt to brute force solutions in order to obtain the key and unlock a new batch of bitcoins. To do this, either their GPU or their CPU is utilized to try one solution after the other, until one of the miners in the network hits the right solution. The bitcoins that were mined are then distributed across all the miners in the network according to the total computing power they have contributed before the solution was found. At the same time, this computing power is used to verify transactions and keep the entire network secure.
... Am i the only person that thinks that is just a giant waste of power? You are essentially burning electricity to get electric dollars, they are seriously just wasting power to brute force encrypted codes? Essentially bitcoins are mined from a bullshit grinder
Well that's true, part of the computing power is used to keep the network up and perform transactions and validate them, meaning it is not entirely useless. Still better than fiat dollars that are printed from the money printer according to the whims of the federal reserve.
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