How does the bitcoin economy work?

[RogueTadhg]

I get it - run specialized software to sold math equations, math equations get you a slice of the coin pie.

You spend the coins on whatever... and then what?

There's a limit to the amount of bitcoins that the world can mine (or so i'm told). So how does the money go from the seller and come back around to the miner?

Usually money is earned back from working a job, which can be cycled back to the local businesses, which in turn have employees that turn it back into the businesses.

 

[Airbrushkid]

Your right there are only so many bitcoins made, should I say mined. The total is 21,000,000. When the day comes. And it will, I think 2020. Once all there mined. The only thing for the miner is transactions which miners rigs will and they will be rewarded for. But bitcoin is not the only coins.

 

[BinarySynapse]

2020 is the year the reward is expected to drop to 6.25 (It's currently 12.5), but even then there'll still be another 2.5 million left to mine. The expected year to mine all of the possible coins is more like 2140, but (in my opinion) the point at which it becomes hard to justify the mining effort solely for the reward is around 2050 when less than 2500 coins per year will be rewarded.

Except for transaction frees, the coins don't come back around to the miner. The protocol creates them out of thin air as a reward to the miners who find blocks. The miners can then spend them on goods at places at accept BTC, sell the coins for profit, save them for investment, or give them away.

 

[gerbiaNem]

Another variable to add to the equation: If BTC price keeps rising, all of the predictions on when it will cease to be profitable fall through. You may mine less coins, but you'll make more money per coin.

 

[KD5ZXG]

How does the bitcoin economy work?

Ransom, Lies, ICOs, Premined Forks. Pump and Dump.
Cryptojacking, Darkmarkets, Laundering, Speculation.

Will all end soon as the 0.1% find a better way to move
the bulk of thier ill gotten gain, not one moment before...

 

[DPI]

I get it - run specialized software to sold math equations, math equations get you a slice of the coin pie.

You spend the coins on whatever... and then what?

There's a limit to the amount of bitcoins that the world can mine (or so i'm told). So how does the money go from the seller and come back around to the miner?

Usually money is earned back from working a job, which can be cycled back to the local businesses, which in turn have employees that turn it back into the businesses.

Rather than waiting to be spoon fed, I recommend doing the smallest bit of self learning and then come back with specific questions. Start with bitcoin and blockchain tech. If you're genuinely interested, then there's far more to be learned than a handful of forum posts can provide.

 

[DPI]

How does the bitcoin economy work?

Ransom, Lies, ICOs, Premined Forks. Pump and Dump.
Cryptojacking, Darkmarkets, Laundering, Speculation.

Will all end soon as the 0.1% find a better way to move
the bulk of thier ill gotten gain, not one moment before...

Can always tell who's angry they missed the boat. They're adorable.

 

[KD5ZXG]

Perish the thought. Fully onboard with evil, and profiting.

Doesn't stop me telling it like it is, and wishing it worked a
little different. But I don't live for that fantasy. I live in the
real world where someone even greedier than me makes
all the rules, and survival depends on playing their game.

And so I sold my soul to the blockchain troll for a pot of
fool's gold. I don't regret nothin...