Mining, can someone explain?

Discussion in 'Videocards vs General Purpose - NVIDIA Ageia PhysX' started by Chess, Jul 29, 2017.

  1. Chess

    Chess Master Guru

    Messages:
    212
    Likes Received:
    0
    One question: what do miners produce?

    Huge amounts of energy is used with mining.
    I googled it for a while and all I get is how it works, but the best answer I can get for ' what does it do ' is... "Solving math problems".

    Really? Whose math problems?
    It it like SETI Folding @ Home?
    Are universities curing cancer with the help of miners?

    What is generated, calculated, produced or what service has been offered for the currency they're getting and who pays for it?
    You can't just generate money out of plain nothing, right?

    Someone ? :)
     
  2. Noisiv

    Noisiv Ancient Guru

    Messages:
    5,818
    Likes Received:
    0
    You have already heard most of it, but the concept is so new to you, that you're not willing to accept the answers. Time is needed for the concept to fully sink in.

    For example check out the evolution of this guy. It took him 8 months. Despite being reasonably inteligent

    http://www.businessinsider.com/bitcoins-have-no-value-2013-4
    http://www.businessinsider.com/bitcoin-is-a-currency-for-clowns-2013-11

    http://www.businessinsider.com/im-changing-my-mind-about-bitcoin-2013-12

    and today he says:


    https://mobile.twitter.com/TheStalwart/status/816677932882075648


    The arrogance of the anti-Bitcoin writing in finance blogger circles circa 2012/2013 was really breathtaking.

    And I know, because I made a lot of these arguments from a position of extreme arrogance and overconfidence.
     
  3. Noisiv

    Noisiv Ancient Guru

    Messages:
    5,818
    Likes Received:
    0
    BTW...

    like him, I was also arrogant back then in regards to BTC,
    but because I am very intelligent :) , I quickly sfup, learned more and then rode it :)
     
  4. Chess

    Chess Master Guru

    Messages:
    212
    Likes Received:
    0
    Noisiv, You're taking that last line of mine a bit too serious.
    I'm not arrogant. I just don't understand.

    The link you've shown me explained a tab bit about the currency, but didn't answer my original answer, as far as I know.
    I'm not into economics, so I read most of it diagonally.
    I'm a rather eco-left guy that would like to earn enough to live nicely, comfortable and have no interests in getting rich. So educating me in the economics of mining currency is no use, I would fade out quickly. :)
    Call me stupid, I call it selective in my interests ^^.

    So if I may ask my original question again:
    What is generated, calculated, produced or what service has been offered for the currency they're getting. What is the product of thousands of Watts being converted from electricity into heat? This aspect boggles me. I see no product. Am I being ignorant?

    Please don't be offended. I never ment to offend anyone, if I seem sceptic, that's because I'm being sceptic of the financial world in general ^^.
     
    Last edited: Jul 29, 2017

  5. Extraordinary

    Extraordinary Ancient Guru

    Messages:
    17,746
    Likes Received:
    9
    Afaik the mining process is looking for Prime numbers, so basically your GPUs are doing a huge number of calculations searching for them, in combination with others online, or on your own if you choose so
     
  6. Noisiv

    Noisiv Ancient Guru

    Messages:
    5,818
    Likes Received:
    0
    I didn't call YOU arrogant, but myself and that other guy in my 1st post... which apparently you did not read all that well ;)

    Also it seems that I have misjudged you, in the sense that contrary to my belief, you are clueless(i dont mean it as an insult) about crypt currencies

    Go and read about it. Most of the world knowledge is just two clicks away :infinity:
     
    Last edited: Jul 29, 2017
  7. Chess

    Chess Master Guru

    Messages:
    212
    Likes Received:
    0
    ExtraOrdinary
    Alright, fair enough...
    Has it any use? :)

    Noisev: I am clueless, which is why I am here, presenting my question ;).
    I guess, because of the bi-polarisation of the GPU consumer parket, I am a bit defensive and jumped to conclusions. I didn't read your post properly, indeed.

    But yet again, it's not about the currencies for me. It's about what mining produces for the people, without diving into crypto currency economics.
    The technical aspect, something goes in, gets processed, something gets out.
    What's being processed and why?

    Thusfar no-one could clearly answer me anywhere ( I've asked in several forums ). Most, like you, tells me to search for it. I am searching for answers, that's why I'm here! Others even answer 'doesn't matter, it makes money'. Occasionally I hear, like ExtraOrdinary: "there's a logarithm being calculated" Fair enough, but with what use?

    See, I'm zoning out again. ^^
    Basically, I need layman's terms.
     
  8. Extraordinary

    Extraordinary Ancient Guru

    Messages:
    17,746
    Likes Received:
    9

    Must be of some use to someone or they wouldn't pay you to find them, if one is found and you're part of a group your bitcoin or whatever payment you get is shared between you, if you find one on your own (unlikely with a single PC now, maybe at the start of the craze you could have) then you get all of the payment

    As for what use finding prime numbers is, no idea

    Last I checked with a single GTX980 and 1000W PSU, it was gonna cost more in electric than I'd have made mining
     
  9. Chess

    Chess Master Guru

    Messages:
    212
    Likes Received:
    0
    Just had an answer from HardForums.

    "Long story short, the "math problems" are used to verify transactions are legitimate, and you earn coins for the trouble of solving those math problems"

    So as a miner you provide the service of legitimating the 'book keepers ledger' between the seller and buyer of a product.. Doing this service you earn currency, being BitCoin or other

    This was what I'm looking for :).
     
  10. Extraordinary

    Extraordinary Ancient Guru

    Messages:
    17,746
    Likes Received:
    9
    I don't think that is correct

    Anyone can install Bitcoin's mining software, which then uses the computer's processing power (using the CPU or GPU) to carry out intensive calculations – you can think of it like trying to search for prime numbers. Lots of people might be working on the same unit of work - a computationally complicated problem. The aim is to find a certain sequence of data, called a "block", that produces a particular pattern when the Bitcoin "hash" algorithm is applied to the data. Whoever's computer manages to do that will win bitcoins.
     

  11. nz3777

    nz3777 Ancient Guru

    Messages:
    1,679
    Likes Received:
    0
    How much money would one need to invest in order to (profit) from something like this? I have one guy that has ALOT of money and might be interested if......I can make him see the light but also I do not want to waste his time either.What are we looking at here to set-up a Legit mining buissness and how much $$$? Thank you.
     
  12. Chess

    Chess Master Guru

    Messages:
    212
    Likes Received:
    0
    That is correct. I have just simplified it a lot. AND, the explanation video came already very much simplified. But by all means, you're correct.
     
  13. AsiJu

    AsiJu Ancient Guru

    Messages:
    3,562
    Likes Received:
    0
    Mining is the process of excavating rock for ores.




    :p
     
  14. Chess

    Chess Master Guru

    Messages:
    212
    Likes Received:
    0
    Oh dedp00l, you funny mothertrucker ^^

    Oh dedp00l, you funny mothertrucker ^^



     
  15. Noisiv

    Noisiv Ancient Guru

    Messages:
    5,818
    Likes Received:
    0
    $3300 boom!

    :D
     

  16. AsiJu

    AsiJu Ancient Guru

    Messages:
    3,562
    Likes Received:
    0
    #chimichangas

    :p
     
  17. Noisiv

    Noisiv Ancient Guru

    Messages:
    5,818
    Likes Received:
    0
    4k

    BOOM!

    :banana:
     
  18. haste

    haste Master Guru

    Messages:
    421
    Likes Received:
    0
    When world economy is rising, pure stocks like BC rise too. Unfortunately, pure stocks are the first ones to get hammered when world economy goes down. There will be a lot of unhappy ppl when it happens and history teaches us, it will... sooner or later.
     

Share This Page