I understand that it’s computers but who owns these computers and can you mine for bitcoins in any location or are certain locations better than others.
In: Technology
Let’s say someone is trying to hack your password by trying every single combination, it’ll take forever to guess the password, but it’s easy to confirm that the password is correct once you find it.
Each bitcoin comes with an undiscovered password and if you can prove you’re the first one to find the password you get the coin.
Of course bitcoins have some math problem instead of something as simple as a password, but that’s basically it.
Anon asking about Bitcoin on ELI5? Right before the halving? Oh yeah, we are so back!
# Can anyone mine for bitcoins?
Yes, anyone can mine for bitcoins.
# Do special computers need to be used?
No. You could do the math by hand even.
# What is mining?
Imagine if you and your friends were given a random number. Let’s day 1337.
Then I’ve got a special calculator that takes whatever you put into it and outputs a different one.
I tell you and your friends, the first person who takes 1337 and adds any number they want to it and puts it through my calculator and ends up with 80085 wins.
You and your friends would all start trying numbers one at a time to get the answer. Eventually one of you would get it.
Now it’s hard to know the answer immediately because you don’t know how the calculator works. But once anyone knows what you claim to be the answer is – they can put it into the calculator and check it for themselves.
# Applying the Parallel back to Bitcoin
– The random number is actually just taking all the letters and numbers of a bitcoin purchase receipt and turning them into numbers and adding them all up.
– The number you’re trying to get is 0.
– The random calculator is actually one of the security code systems we use for most of the internet so everyone has it.
– The mining part isn’t like finding or creating one like it sounds. You’re rewarded one (or part of one) for solving the math problem first.
– Who gives or creates the Bitcoin reward? The people who are a part of the transaction give a little away to the winner.
– They give the reward because they need people to do the math to help them buy or sell their own Bitcoin if no one did the math they’d be stuck with their Bitcoin unable to transfer it. So it’s a kind of transaction fee.
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