The Math Behind Bitcoin - CoinDesk

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Bitcoin and Cryptocurrencies are in reality a hyperinflationary multilevel-marketing pyramid cult of anarcho-capitalism and contradictory hypocrisy, prove me wrong/change my mind effort post itt

Reminder, Satoshi's Bitcoin and every other cryptocoin is designed to enrich a tiny minority of oligarchs who produce the supply for measurably less work/capital input than late adopters. These members form the inner circle of the cult who are than heavily incentivized to disseminate propaganda and psychological marketing tactics to the public "investors" who further spread the marketing-cult "white paper" claims like a virus in the hope that they will be able to leverage their low-effort low-capital database tokens though the smoke and mirrors and low liquidity exchanges and tape painting in order to pass their bags for real capital as all the later users buy into the dream that they too will become one of the oligarchs.
For future alpaca farmers, Sexton and Saitone laid out some of the major hallmarks of a speculative bubble, including: (1) The asset not the product is the thing being marketed (i.e. live alpacas, not fiber),
Bitcoin cult members sell users the dream of egalitarian wealth, when in reality the math and code behind Bitcoin simply created a system where existing capital is proportionally transfered into Bitcoin during the temporary hyperinflationary phase at an accelerated rate based on how early one begins to to set up server farms. Early users spent measurably less capital to generate significantly more of the supply. The Bitcoin protocol and mining algorithm is not some fancy complex math (Bitcoin mining math amounts to a lottery system, more capital gives more lottery ticket printers). Mining boils down to wasting more work and energy for less output as time passes.
(2) investors have unrealistic expectations (alpaca fiber would replace wool, despite the lack of infrastructure; and besides the fact that people don’t really wear that much wool),
Cryptocoins seek to turn money and now entire industries and services into speculative gift cards where the majorty of the supply is in the hands of a few "pre-sale ICO" kings and a few existing wealthy whales who have set up large warehouses in China, Washington, South East Asia, etc. Are we to expect the future robber barons who bought a bunch of gamer graphics cards to waste energy running this software deserve anything?
https://www.politico.com/magazine/story/2018/03/09/bitcoin-mining-energy-prices-smalltown-feature-217230
https://www.popularmechanics.com/culture/web/a11610/this-is-what-happens-when-a-bitcoin-mine-burns-down-17410755/
Honestly, if the mining software actually produced real world useful work though distributed computing like BOINC ( https://boinc.berkeley.edu/ ) , [email protected] ( http://folding.stanford.edu/ ) - than mining would have a measurable value but instead the computational energy is wasted though a convoluted "guess a random number" game. Also note, guessing a random number and increasing the amount of capital to waste by guessing a random number (leading 0 hash) is not to be confused with a secure decenteralized ledger of trust - this is a gimmicky ass way that can be observed being actively exploited by pools and large hashfarms in many of the smaller PoW altcoins.
See also how smart contracts can be manipulated by large mining operations:
https://steemit.com/ethereum/@dhumphrey/f2pool-manipulates-usd1-2-million-on-the-ethereum-blockchain-during-the-status-im-ico
and note that PoS systems are even bigger scams (i.e. Raiblocks and supposedly the future of Ethereum) where the supply is premined and PoW transaction verification rewards are statistically granted to the richest users who coincidently are the early adopters or existing capital hodlers, poors don't even qualify for staking rewards.
(3) information is controlled through industry sources (most of the information the researchers were able to dig up was put out by breeding associations),
Even in the more reputable publications, journalists boil down the computer science into the marketing claims of what Blockchain and smart contracts cultist CLAIM it can do. These are solutions in search of problems.
Blockchains are inefficenct databases, and lying about data input or stealing the deed to your house never seems to be a problem.
Smart contracts need a data source to trigger, and how can data be trusted in an adveserial decenteralized network? A set of trusted "Oricales" who 'stake' their beanie babies? What's the use case for a smart contract? What happens if someone puts up a smart contract to assisinate the head of all the three letter agencies, the Queen, and the UN, and the international monitary fund?
(4) small scale investors predominate (Foster Farms did not open an alpaca plant).
The cult of bagholders think they are the kings.
The underlying bitcoin/cryptocoin systems are simply a shitty anarcho-capitalist scam cult.
The idealist vision behind ecash is great and all but it's a huge mistake to dismiss the side effect of further enabling a system designed for anarcho-capitalist black markets. This could easily spiral out into a long winded debate and flame war, but ill just point out that the game theory behind bitcoin favors early adopters (just some dudes who ran some software before other people.. software that can be duplicated ad infinitum ) at the expense of extracting real wealth from users who join at any later time.
Bitcoiners claim Satoshi style ecash systems are a response to the 2008 financial collapse, fiat inflation, central banks etc, and yet the replacement system Satoshi designed just exacerbates the existing capital system into a measurably worse oligarchical techno-cult which embraces the enablement of lawlessness. If the claim of "trustless" and "decenteralized" is a main selling point, it's an illusion at best and manipulative propaganda at worst as there are centeral points of control within the cryptocoin ecosystems- i.e. /bitcoin censorship, anonymous developers, mining pool operators, really fucked up exchanges operating behind 7 shell companies in seychelles, the whole shitshow behind tether pulling what amounts to be fraud and theft of large sums of assorted cryptocurrencies simply because exchanges are central power hodlers and can exploit normie small fish traders (exchanges are poised to even exploit the whales) via front running and cooking the books though manipulative insider trading.
There's no accountablity in the cryptocoin space - so while tradiational systems are flawed, we at least know who to blame and how to find them and hold them legally responsible. With anarcho-capital systems, we lose that option. Additionally, the production of the money supply in these specific implementations of cryptocoins are measurably worse than traditional money minting and distribution systems.
One important point: if we actually include all 7 billion people on the earth, most of whom have zero BTC or Ethereum, the Gini coefficient is essentially 0.99+. And if we just include all balances, we include many dust balances which would again put the Gini coefficient at 0.99+. Thus, we need some kind of threshold here. The imperfect threshold we picked was the Gini coefficient among accounts with ≥185 BTC per address, and ≥2477 ETH per address. So this is the distribution of ownership among the Bitcoin and Ethereum rich with $500k as of July 2017.
In what kind of situation would a thresholded metric like this be interesting? Perhaps in a scenario similar to the ongoing IRS Coinbase issue, where the IRS is seeking information on all holders with balances >$20,000. Conceptualized in terms of an attack, a high Gini coefficient would mean that a government would only need to round up a few large holders in order to acquire a large percentage of outstanding cryptocurrency — and with it the ability to tank the price.
With that said, two points. First, while one would not want a Gini coefficient of exactly 1.0 for BTC or ETH (as then only one person would have all of the digital currency, and no one would have an incentive to help boost the network), in practice it appears that a very high level of wealth centralization is still compatible with the operation of a decentralized protocol. Second, as we show below, we think the Nakamoto coefficient is a better metric than the Gini coefficient for measuring holder concentration in particular as it obviates the issue of arbitrarily choosing a threshold.
...However, the maximum Gini coefficient has one obvious issue: while a high value tracks with our intuitive notion of a “more centralized” system, the fact that each Gini coefficient is restricted to a 0–1 scale means that it does not directly measure the number of individuals or entities required to compromise a system.
Specifically, for a given blockchain suppose you have a subsystem of exchanges with 1000 actors with a Gini coefficient of 0.8, and another subsystem of 10 miners with a Gini coefficient of 0.7. It may turn out that compromising only 3 miners rather than 57 exchanges may be sufficient to compromise this system, which would mean the maximum Gini coefficient would have pointed to exchanges rather than miners as the decentralization bottleneck.
Conversely, if one considers “number of distinct countries with substantial mining capacity” an essential subsystem, then the minimum Nakamoto coefficient for Bitcoin would again be 1, as the compromise of China (in the sense of a Chinese government crackdown on mining) would result in >51% of mining being compromised.
https://medium.com/@balajis/quantifying-decentralization-e39db233c28e
https://medium.com/@Bitfinexed
submitted by buttcoin_juice to Buttcoin [link] [comments]

08-31 07:38 - 'I would appreciate if you explained how I'm wrong. I once wrote a Bitcoin miner (which connects to a stratum mining pool), and have dived quite deep into the math, data structures and algorithms behind Bitcoin, so I think I kn...' by /u/mort96 removed from /r/Bitcoin within 475-485min

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I would appreciate if you explained how I'm wrong. I once wrote a Bitcoin miner (which connects to a stratum mining pool), and have dived quite deep into the math, data structures and algorithms behind Bitcoin, so I think I know what I'm talking about, but I'm always receptive to a well-reasoned explanation of how I'm wrong so that I can learn something new.
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Author: mort96
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Halving simplified. The #Bitcoin mining reward halves every 210,000 blocks (~4 years). This creates market cycles. The next halving happens in 3 months. The mining reward will drop from 12.5 to 6.25 BTC. 50% less #BTC produced. Exponential growth in users. You do the math!

Halving simplified. The #Bitcoin mining reward halves every 210,000 blocks (~4 years). This creates market cycles. The next halving happens in 3 months. The mining reward will drop from 12.5 to 6.25 BTC. 50% less #BTC produced. Exponential growth in users. You do the math! submitted by eljaboom to Bitcoin [link] [comments]

What Do YOU Need to MINE ONE BITCOIN In 2020?! Math of mining a WHOLE Bitcoin

What Do YOU Need to MINE ONE BITCOIN In 2020?! Math of mining a WHOLE Bitcoin submitted by VoskCoin to Bitcoin [link] [comments]

What Do YOU Need to MINE ONE BITCOIN In 2020?! The math of mining a whole BTC

What Do YOU Need to MINE ONE BITCOIN In 2020?! The math of mining a whole BTC submitted by VoskCoin to btc [link] [comments]

Halving simplified. The #Bitcoin mining reward halves every 210,000 blocks (~4 years). This creates market cycles. The next halving happens in 3 months. The mining reward will drop from 12.5 to 6.25 BTC. 50% less #BTC produced. Exponential growth in users. You do the math!

Halving simplified. The #Bitcoin mining reward halves every 210,000 blocks (~4 years). This creates market cycles. The next halving happens in 3 months. The mining reward will drop from 12.5 to 6.25 BTC. 50% less #BTC produced. Exponential growth in users. You do the math! submitted by BlueGod121 to u/BlueGod121 [link] [comments]

[I did the math] How many potatoes to mine 1 bitcoin

submitted by 7bitcoin to Bitcoin [link] [comments]

If mining bitcoin is just math...

If mining bitcoin is just math... submitted by Thotmas to Bitcoin [link] [comments]

If mining bitcoin is just math... https://t.co/Vuyxqtn7Wu - Crypto Dynamic Info - Whales's

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If mining bitcoin is just math... /r/Bitcoin

If mining bitcoin is just math... /Bitcoin submitted by ABitcoinAllBot to BitcoinAll [link] [comments]

Less than 1 Bitcoin will be mined a day by the year 2060. Let that sink in boys and girls! Assuming that some of you are around 20 years old, with some simple maths we can figure out that less than 1 Bitcoin (.87890544) will be mined a day by the time most of you are going to retire.

Less than 1 Bitcoin will be mined a day by the year 2060. Let that sink in boys and girls! Assuming that some of you are around 20 years old, with some simple maths we can figure out that less than 1 Bitcoin (.87890544) will be mined a day by the time most of you are going to retire.
submitted by CrapCloud to Bitcoin [link] [comments]

If mining for bitcoins is about solving math problems/hashes why are miners focusing so much on graphics cards rather than CPUs?

submitted by Lvl1NPC to NoStupidQuestions [link] [comments]

What is Bitcoin Mining? (The Math Problem Behind Mining)

What is Bitcoin Mining? (The Math Problem Behind Mining) submitted by WebSwiftSEO to CryptocurrencyVideos [link] [comments]

03-27 23:43 - 'Peter R. Rizun: His (CSW) papers are illogical technobabble. CSW claimed to have found a flaw in Emin Gün Sirer ‘s math for selfish mining and published a paper. After I reviewed it and pointed out n...' (twitter.com) by /u/GalacticCannibalism removed from /r/Bitcoin within 433-443min

Peter R. Rizun: His (CSW) papers are illogical technobabble. CSW claimed to have found a flaw in Emin Gün Sirer ‘s math for selfish mining and published a paper. After I reviewed it and pointed out numerous flaws (e.g., he implicitly assumed mining had memory), he retracted it.
Go1dfish undelete link
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Author: GalacticCannibalism
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Napkin Math: Total Global Average Cost to Mine a bitcoin

I've made a few assumptions below to try to come to a very generalized understanding of what a bitcoin costs to mine on average, globally, post "halvening." I'm not trying to be too precise and would be happy if I was within 10%-15% of what may actually be true. I tried to stay somewhat conservative (I think) in the estimates by assuming that all mining equipment is the best of the best, and that all electricity is relatively cheap (I understand some operations in China don't pay for electricity).
If there are any glaring mistakes, or major issues I've missed which could skew the result significantly, I would appreciate any help. Thanks.
 
ASSUMPTIONS:
   
CALCULATIONS:
Electricity Cost:
 
Depreciation Cost:
NOTE: I assumed a linear depreciation cost over 180 days useful life of the mining rig. I honestly don't know how long people keep miners (professional, not hobbyists). It does appear that new/better models come out about every 6 months though. It also appears that older mining rigs, at most 2 development cycles old, aren't cost effective. I didn't regard it as appropriate to this estimate to include the few 2 year old USB miners that some hobbyists are using in their basement or attic somewhere. Also, I've heard that some mining manufacturers mine with their new stock first before cleaning it up and sending out for sale, further hurting the ROI on older equipment.
 
Combining the Electricity Cost and Depreciation Cost together we get: (Network Electricity Cost Per Coin) + (Depreciation Cost per Coin) = ($43.30) + ($715.79) = $759.09
 
Property, Plant, and Labor Cost: This is tough and can have a lot of factors. I've written down many but to keep this post length somewhat reasonable, I'm going to simply add on a 15% additional cost to the previous total = (1.15) x ($759.09) =
 
So, the Global Total Mining Average Cost to collectively mine a bitcoin at 12.5 coins awarded per block is about: $872.95
 
As we can see, the Depreciation expense is the biggest factor in the estimate. Any adjustments to the assumption of mining equipments' usable life would significantly affect the estimate. Additionally, this estimate is basically a current "snapshot" of the mining landscape and doesn't include network growth and its effects on mining over time.
 
Again, this is just some napkin math I threw together from a base of assumptions and wasn't intended to be exact. I appreciate hearing any major faults you find in the assumptions or methodology and any suggestions you have regarding the numbers.
submitted by uboyzlikemexico to BitcoinMarkets [link] [comments]

For unsolved math equations, why don't we have computers figure out the answers similarly to bitcoin mining?

submitted by HeyRustyTrueMemester to AskReddit [link] [comments]

@WIRED: The first step to solving bitcoin's electricity-guzzling problem is understanding the math behind the mining https://t.co/vM6Z1z3M4i

@WIRED: The first step to solving bitcoin's electricity-guzzling problem is understanding the math behind the mining https://t.co/vM6Z1z3M4i submitted by -en- to newsbotbot [link] [comments]

What is the math behind mining bitcoins?

What math does the computer do exactly to mine bitcoins? How do they make it to be harder and harder to mine and calculate so that you always end up needing more processing power? Why was it once relatively easy and now it is almost impossible to do decent mining with a desktop computer?
submitted by DarinHristov to askscience [link] [comments]

@WIRED: The first step to solving bitcoin's electricity-guzzling problem is understanding the math behind the mining https://t.co/0JiBP7Gj5n

@WIRED: The first step to solving bitcoin's electricity-guzzling problem is understanding the math behind the mining https://t.co/0JiBP7Gj5n submitted by -en- to newsbotbot [link] [comments]

@WIRED: The first step to solving bitcoin's electricity-guzzling problem is understanding the math behind the mining https://t.co/cp5Qn14k4t

@WIRED: The first step to solving bitcoin's electricity-guzzling problem is understanding the math behind the mining https://t.co/cp5Qn14k4t submitted by -en- to newsbotbot [link] [comments]

Bitcoin mentioned around Reddit: Mining bitcoin with pencil and paper /r/math

Bitcoin mentioned around Reddit: Mining bitcoin with pencil and paper /math submitted by BitcoinAllBot to BitcoinAll [link] [comments]

@WIRED: The first step to solving bitcoin's electricity-guzzling problem is understanding the math behind the mining https://t.co/jg1jqWArv5

@WIRED: The first step to solving bitcoin's electricity-guzzling problem is understanding the math behind the mining https://t.co/jg1jqWArv5 submitted by -en- to newsbotbot [link] [comments]

How Bitcoin mining actually works - What is the ... Bitcoin and cryptocurrency mining explained - YouTube But how does bitcoin actually work? - YouTube Is BITCOIN MINING Profitable RIGHT NOW In Mid 2019? - YouTube Mining Bitcoin with Excel - YouTube

The Math Behind Bitcoin Eric Rykwalder is a software engineer and one of Chain.com ’s founders. Here, he gives an overview of the mathematical foundations of the bitcoin protocol. How Bitcoin Mining Works. Where do bitcoins come from? With paper money, a government decides when to print and distribute money. Bitcoin doesn't have a central government. With Bitcoin, miners use special software to solve math problems and are issued a certain number of bitcoins in exchange. Introduction. How "mining" works is at the very heart of Bitcoin. It is often brushed over and simply referred to as "complicated math" in the media, but it's actually quite simple to understand even if it is computationally intensive to solve.. Disclaimer. Most of the content in this post comes from a post on Reddit that I have edited, reformatted, and elaborated on. Back in April, bitcoin entrepreneur Marc Bevand used actual efficiency rates of current bitcoin mining software and estimated a range of 470-540 megawatts, or 4.12-4.73 terrawatt-hours per year ... In fact, if you went and asked people who have been mining for a number of years, the first thing they will do is warn you about how taxing the whole thing can be on the computer power you have at your disposal. It can indeed be VERY taxing. Many people who are engaged in bitcoin mining do so by working in teams.

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How Bitcoin mining actually works - What is the ...

In this video I try to breakdown the "cryptographic problem" that people reference when they talk about bitcoin mining. TIMESTAMPS: Antminer S9: 6:03 Antminer S17: 10:17 Articles and hashtags referenced:#bitcoinnews #bitcoinmining #BitcoinBillionaire GET A Chance To WIN $100 B... We are miners from 2013 looking to create community and help train and learn together as blockchain tech changes so quickly. Leave your thoughts in the comme... When a Bitcoin Miner Mines, what is happening? Dr Mike Pound exposes the process.. note: at 3:39 Mike mentions a Bitcoin is mined every ten minutes when it i... Bitcoin and cryptocurrency mining explained with the Byzantine Generals Problem. We use it to explain the essence of cryptocurrency mining. https://www.udemy...

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