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Bitcoin Mining Rate In 2009

What Is The Bitcoin Mining Block Reward?

What Is The Bitcoin Mining Block Reward?

The Bitcoin block reward refers to the new bitcoins distributed by the network to miners for each successfully solved block. Satoshi Nakamoto, Bitcoins creator, set the block reward schedule when he created Bitcoin. It is one of Bitcoins central rules and cannot be changed without agreement between the entire Bitcoin network. The block reward started at 50 BTC in block #1 and halves every 210,000 blocks. This means every block up until block #210,000 rewards 50 BTC, while block 210,001 rewards 25. Since blocks are mined on average every 10 minutes, 144 blocks are mined per day on average. At 144 blocks per day, 210,000 blocks take on average four years to mine. Total circulation will be 21,000,000 coins. Itll be distributed to network nodes when they make blocks, with the amount cut in half every 4 years. first 4 years: 10,500,000 coins next 4 years: 5,250,000 coins next 4 years: 2,625,000 coins next 4 years: 1,312,500 coins etc - Satoshi Nakamoto The block reward is the only way that new bitcoins are created on the network. Satoshi explained this in an early email post in 2009: Coins have to get initially distributed somehow, and a constant rate seems likethe best formula. The block reward creates an incentive for miners to add hash power to the network. The block reward is what miners try to get using their ASICs, which make up the entirety of the Bitcoin network hash rate. ASICs are expensive, and have high electricity costs . Miners are profitable when their hardware and electricity costs to mine one bitcoin are lower than the price of one bitcoin. This means miners can mine bitcoins and sell them for a profit. The more hash power a miner or mining pool has, the greater the chance is that the miner or pool has to mine a block. As miners add more hash rate, more sec Continue reading >>

How Many Bitcoins Did Satoshi Nakamoto Mine?

How Many Bitcoins Did Satoshi Nakamoto Mine?

How Many Bitcoins Did Satoshi Nakamoto Mine? Since the early days of Bitcoin, there has been a debate about how much Bitcoinwas mined by Satoshi Nakamoto. The question is mostly interesting for its ownsake: by all appearances, Satoshi Nakamoto either no longer has the private keysto these early coins, or at the very least is uninterested in spending them.Still, its an interesting question: in a parallel universe where Satoshireappears out of the void, how much Bitcoin would be in Satoshis wallet? There have been a number of other attempts to estimate Satoshis holdingsbefore. For those interested, I would especially recommend this Quoraanswer ,which uses a more complex (and probably more accurate) method of estimatingwhich coins were mined by Satoshi. However, you dont actually needsophisticated techniques to understand the evidence available. Im going to makea simpler analysis that primarily looks at the estimated hash rate of theBitcoin network in 2009. The total hash rate of the Bitcoin network can be estimated from fields that areincluded in Bitcoin blocks. Every block mined has a special blockheader which containsthe most important metadata about the block. Block headers are 80 bytes, andinclude the following data: For this analysis, we will be looking at two of the fields in the block header:the timestamp and the difficulty target. The difficulty target is a number that encodes the minimum block difficulty.There is a simple formula thattranslates the 32-bit difficulty field in the block header into a 256-bitdifficulty target. The difficulty target is used to tell if a block hash meetsthe criteria to be accepted as a new block: if the 256-bit block hash isnumerically less than the 256-bit difficulty target, then the block meetsBitcoins proof-of-work requirement. Th Continue reading >>

A Brief History Of Bitcoin Mining Hardware

A Brief History Of Bitcoin Mining Hardware

A brief history of bitcoin mining hardware Bitcoin mining was once nothing more than a lucrative hobby for nerdy cryptocurrency enthusiasts. The only hardware required, in the beginning, was a simple computer. Things have changed a lot in less than 10 years. In 2009 the first bitcoin miners used standard multi-core CPUs to produce BTC at a rate of 50 per block. If you had a couple computers lying around with decent specs you could have earned about five dollars a day. The difficulty of mining (amount of computing power necessary) was so low then it was worth it for hobbyists and crypto nerds to participate. Meet the first bitcoin miner: a regular old CPU. Today, mining 50 BTC would reward you in excess of $434,000 per block. A little over a month ago, when it was trading at nearly $20K, that same nerdy hobby would have netted you nearly a million dollars a pop. But, if you are going to hop in your time machine dont go back to ancient 2009. It was a strange time where people used GPUs to play video games, instead of playing them with cardboard like we do in the present. So, wed suggest dialing your Deloreans date display to 2010 and bring pizza. Arguably, bitcoins first valuation didnt come from a giant company, it came from a hungry dude named Lazlo Hanyecz who, in May 2010, posted the following to Bitcointalks forums under the subject Pizza for bitcoins? : Ill pay 10,000 bitcoins for a couple of pizzas.. like maybe 2 large ones so I have some left over for the next day. I like having left over pizza to nibble on later. You can make the pizza yourself and bring it to my house or order it for me from a delivery place Eventually someone took him up on the offer and Hanyecz ended up eating a meal that, only eight years later, would be worth $8.6 million. More importantly, Continue reading >>

Miner Problem: Big Changes Are Coming For Bitcoin's Working Class

Miner Problem: Big Changes Are Coming For Bitcoin's Working Class

Miner problem: big changes are coming for Bitcoin's working class New chips from Butterfly Labs, a leading Bitcoin equipment manufacturer, promise speeds of 4.5 gigahashes per second to 1,500 gigahashes per second. Jim OShea, a web programmer, gadget lover, and family man living in Pennsylvania, became a digital gold miner in June of 2011. The resource he mines is not World of Warcraft currency, personal data, or fancy new domain names. Its Bitcoin, the internet-native currency that many believe has the potential to become a revolutionary new universal currency independent of governments, banks, and PayPal. OShea has 24 computers running constantly in a shed behind his house, making Bitcoins. "My setup is kind of... ghetto. I have bugs crawling around on my rigs and theres dust and pollen and cigar smoke," he told The Verge recently by phone. "I'm out here now, I dont know if you can hear them in the background. Can you hear the hum?" The race to mine Bitcoins has drawn a rush of digital '49ers Bitcoin has been described as cash for the internet, but gold is a more appropriate analogy. Anyone can "mine" Bitcoins on their own computers by running a program thats designed to produce a 64-digit number in a resource-intensive way. This program randomly computes a cryptographic "hash" over and over until the result is below the number the network is looking for. The network rewards the first miner to get the right answer with 50 Bitcoins and then the process starts again. Only 21 million will be created in total, mimicking the scarcity of a precious metal. The race to mine them has attracted a rush of digital 49ers. There are many, likely thousands, like OShea. "Other miners are more organized. Theyll rent this warehouse and wire it and build all these beautiful racks," he Continue reading >>

Guy Bought 5,000 Bitcoins In 2009 For $27, Now Worth $886,000 - The Tell - Marketwatch

Guy Bought 5,000 Bitcoins In 2009 For $27, Now Worth $886,000 - The Tell - Marketwatch

Talk about a degree that gives you bang for your buck. Kristoffer Kochwas writing a thesis on encryption in 2009 when he spent about$27 to buy 5,000 bitcoins. Life went on, and he forgot about his investment until bitcoins wild price swings earlier this year resulted in a slew of articles about bitcoin. Bitcoin is a virtual currency that isn\t controlled by a central bank. Instead, bitcoins are created through a process called mining, in which a computer tries to solve a cryptographic problem. The total supply of bitcoins is capped, which has led to comparisons with assets like gold. Koch\s original $27 investment is now worth about $886,000, Koch told the Norwegian broadcaster NRK. Thats a return of 3,281,500% in four years. Koch has used one-fifth of his bitcoin stash to buy an apartment in Oslo, Norway, the Guardian reports. Continue reading >>

Complete Bitcoin Price History Chart + Related Events (2009 - 2018)

Complete Bitcoin Price History Chart + Related Events (2009 - 2018)

Bitcoin value: $2787.85Bitcoin value 10 days later: $3383.79 View Event #66 on Chart After years of debating about how Bitcoin should scale the controversy turned into action. The Bitcoin code split in two different directions. One direction supporting the optimization of Bitcoin blocks through Segwit , while the other direction supports bigger blocks of up to 8mb. The bigger block group called their currency Bitcoin Cash and effectively doubled the holdings of anyone who owned Bitcoin before August 1st. For example, if you have 10 Bitcoins before August 1st, you would now have 10 Bitcoins and 10 Bitcoin Cash. Bitcoin value: $726.36Bitcoin value 10 days later: $749.1 View Event #61 on Chart In a shocking turn of events Donald Trump defeats Hillary Clinton and become the 45th president of the United States. The US market drops by over 1% and the Mexican Pesohas plumbed record lows, and is now down 10% today at 20.22 peso to the dollar. Japan'sNikkei 225 plunged 5.4% while Hong Kong's Hang Seng index lost 2.2%. The Shanghai Composite index lost 0.6%.. Dow futures were down 2.1%, S&P 500 futures were 2.3% lower and Nasdaq futures lost 2.7% at around 6.30a.m. ET. European markets opened sharply lower before paring its losses.GermanysDAX index was off around 1% after opening down nearly 3%. France's CAC 40 was in positive territory by 0.4% after an earlier decline of 1.5% and Britain's FTSE 100 dropped 0.3%. Investors rushed into perceived havens, such as gold, which is up$26.90 an ounce, or 2.1%, to $1,301.40. Bitcoin has seen a sharp increase in value during this night going up 5% in just 24 hours, however later throughout the day the price stabilized on a total increase of 2.5%. Bitcoin value: $594.86Bitcoin value 10 days later: $591.36 View Event #60 on Chart Bitfinex, Continue reading >>

The First Miners

The First Miners

I'm curious to know who, back in 2009 was mining and how many bitcoins could you mine per day with an average personal computer? I mined about 200btc with a pentium 4 pc in a couple of days. I'm curious to know who, back in 2009 was mining and how many bitcoins could you mine per day with an average personal computer? I mined about 200btc with a pentium 4 pc in a couple of days. I first heard about Bitcoin about a year ago but I didnt read into it much and forgot about it until about a month ago when I stumbled on it again. I wish I would have read more the first time around... BTC tip jar: 18EKpbrcXxbpzAZv3T58ccGcVis7W7JR9w I mined 100 BTC in a few days in late 2009 using two or three computers (the same one built both blocks) I was previously using for [email protected] I don't remember their specs, but they weren't anything special. I actually stopped because they were using significant amounts of power to generate something that didn't seem to have any purpose or value, and went back to [email protected] Quote from: blazing on August 08, 2012, 01:57:48 PM I'll be honest, it was greed. Also, part of it was having the opportunity to be part of something new, but in the end I ended up stopping, so I can't say either really convinced me all that much. Quote from: Raize on August 08, 2012, 06:37:44 PM I mined 100 BTC in a few days in late 2009 using two or three computers (the same one built both blocks) I was previously using for [email protected] I don't remember their specs, but they weren't anything special. I actually stopped because they were using significant amounts of power to generate something that didn't seem to have any purpose or value, and went back to [email protected] Quote from: blazing on August 08, 2012, 01:57:48 PM I'll be honest, it was greed. Also, part of it was having the Continue reading >>

What Most Bitcoin Miners Dont Understand Zapchain Magazine Medium

What Most Bitcoin Miners Dont Understand Zapchain Magazine Medium

CEO of Octane AI, Founder of Chatbots Magazine, YC Alum, Forbes 30 Under 30, product at Ustream for 4 years (sold for $130mil). Why the Little Guy Cant Mine BitcoinAnymore The quotes in this article were taken from questions answered on ZapChain . If you would like to be quoted in a future ZapChain article, sign up here and start answering questions. If you enjoy the article, let us know by clicking Recommend at the end. Simple Definition of Bitcoin Mining: People run mining software on computers. This software tracks all Bitcoin transactions and makes sure that people cant spend the same Bitcoin twice. People mining are rewarded for their resources with unreleased Bitcoins. If you were mining Bitcoin when it was first released in 2009, you could easily have mined hundreds of Bitcoins in a week just using your home computer. If you were lucky enough to do this you are likely a millionaire right now. Today, Bitcoin mining is completely different. With the rapid increase in people mining Bitcoin, and the continued improvement of Bitcoin mining hardware, Bitcoin mining has shifted from casual miners experimenting at home to full blown large scale operations funded by millions of dollars. The mining ecosystem is rapidly growing and evolving. Were beginning to see a shift in hardware infrastructures, from ASIC chips connected via USB in the home to full fledged rack mountable servers in large datacenters. - Chris Shepherd, CEO of HashRabbit (Bitcoin Mining Company) What most miners dont understand is that there is no longer room for the little guy to compete. He simply doesnt have the resources. Bitcoin mining hardware is increasing in power so quickly that in order to maintain a profitable mining operation you need to: Actively sell your current mining hardware before the Continue reading >>

Why Was There An Non-steady Mining Rate In 2009?

Why Was There An Non-steady Mining Rate In 2009?

Why was there an non-steady mining rate in 2009? For the first four years of bitcoin, 50 bitcoin were being mined per block. There was a feedback loop to adjust difficulty so that blocks would be mined every ten minutes, on average. So why is the graph of "Total bitcoin in circulation" so far from a straight line? See image: When a large amount of hashing power enters or leaves the network, the difficulty adjustments (capped at 4x in either direction) often aren't enough to keep the average block difficulty at 10 minutes. When a lot of hashing power comes into the network, block time is more often going to be less than 10 minutes while the opposite means it's more often going to be more than 10 minutes. This in turn means that coins are generated faster in the former case and slower in the latter. Thanks for your answer. I guess a second question then is why is the slope generally increasing in the first four years? If the general trend was increased hashing power preceding increased difficulty I would expect early over-production and a decreasing slope. Alex Millar Feb 2 '15 at 16:43 If you were to have exponentially increasing hashing power, you would expect some fluctuation within a given two-week period, but roughly the same # of coins produced in any given two two-week periods. Thus, the slope of the line would be higher, but it wouldn't necessarily increase. For that, you would need faster-than-exponential growth in the network. The slight dip in slope in Jul 09 to Jan 10 is probably a decrease in hashing power and the ramp up to Jul 10 looks more than exponential. After that to the first halving in Jan 13 looks like a straight line to me, as you would expect. Jimmy Song Feb 2 '15 at 17:23 If the Bitcoin would have had a constant amount of hashing power that whol Continue reading >>

History Of Bitcoin - Wikipedia

History Of Bitcoin - Wikipedia

Number of bitcoin transactions per month (logarithmic scale) Bitcoin is a cryptocurrency , a digital asset designed to work as a medium of exchange that uses cryptography to control its creation and management, rather than relying on central authorities . [1] The presumed pseudonymous Satoshi Nakamoto integrated many existing ideas from the cypherpunk community when creating bitcoin. Prior to the release of bitcoin there were a number of digital cash technologies starting with the issuer based ecash protocols of David Chaum [2] and Stefan Brands . Adam Back developed hashcash , a proof-of-work scheme for spam control. The first proposals for distributed digital scarcity based cryptocurrencies were Wei Dai 's b-money [3] and Nick Szabo 's bit gold . [4] [5] Hal Finney developed reusable proof of work (RPOW) using hashcash as its proof of work algorithm. [6] In the bit gold proposal which proposed a collectible market based mechanism for inflation control, Nick Szabo also investigated some additional enabling aspects including a Byzantine fault-tolerant asset registry to store and transfer the chained proof-of-work solutions. [5] There has been much speculation as to the identity of Satoshi Nakamoto with suspects including Wei Dai , Hal Finney and accompanying denials. [7] [8] The possibility that Satoshi Nakamoto was a computer collective in the European financial sector has also been discussed. [9] On 18 August 2008, the domain name bitcoin.org was registered. [10] Later that year on October 31st, a link to a paper authored by Satoshi Nakamoto titled Bitcoin: A Peer-to-Peer Electronic Cash System [11] was posted to a cryptography mailing list. [10] This paper detailed methods of using a peer-to-peer network to generate what was described as "a system for electronic tra Continue reading >>

Mining Coins On A Quadcore In 2010 (aka Why I Want A Time Machine) : Bitcoin

Mining Coins On A Quadcore In 2010 (aka Why I Want A Time Machine) : Bitcoin

Do not use URL shortening services: always submit the real link. Begging/asking for bitcoins is absolutely not allowed, no matter how badly you need the bitcoins. Only requests for donations to large, recognized charities are allowed, and only if there is good reason to believe that the person accepting bitcoins on behalf of the charity is trustworthy. News articles that do not contain the word "Bitcoin" are usually off-topic. This subreddit is not about general financial news. Submissions that are mostly about some other cryptocurrency belong elsewhere. For example, /r/CryptoCurrency is a good place to discuss all cryptocurrencies. Promotion of client software which attempts to alter the Bitcoin protocol without overwhelming consensus is not permitted. Trades should usually not be advertised here. For example, submissions like "Buying 100 BTC" or "Selling my computer for bitcoins" do not belong here. /r/Bitcoin is primarily for news and discussion. Please avoid repetition /r/bitcoin is a subreddit devoted to new information and discussion about Bitcoin and its ecosystem. New merchants are welcome to announce their services for Bitcoin, but after those have been announced they are no longer news and should not be re-posted. Aside from new merchant announcements, those interested in advertising to our audience should consider Reddit's self-serve advertising system . Do not post your Bitcoin address unless someone explicitly asks you to. Be aware that Twitter, etc. is full of impersonation. Continue reading >>

#1 Simple Bitcoin Price History Chart (since 2009)

#1 Simple Bitcoin Price History Chart (since 2009)

Bitcoin was not traded on any exchanges in 2009. Its first recorded price was in 2010. Technically, Bitcoin was worth $0 in 2009 during its very first year of existence! Bitcoin's price never topped $1 in 2010! Its highest price for the year was just $0.39! Bitcoins price is measured against fiat currency, such as American Dollars (BTCUSD), Chinese Yuan (BTCCNY) or Euro (BTCEUR). Bitcoin therefore appears superficially similar to any symbol traded on foreign exchange markets. Unlike fiat currencies however, there is no official Bitcoin price; only various averages based on price feeds from global exchanges . Bitcoin Average and CoinDesk are two such indices reporting the average price. Its normal for Bitcoin to trade on any single exchange at a price slightly different to the average. But discrepancies aside, what factors determine Bitcoins price? The general answer to why this price? is supply and demand. Price discovery occurs at the meeting point between demand from buyers and supply of sellers. Adapting this model to Bitcoin, its clear that the majority of supply is controlled by early adopters and miners. Inspired by the rarity of gold, Bitcoin was designed to have a fixed supply of 21 million coins, over half of which have already been produced. Several early adopters were wise or fortunate enough to earn, buy or mine vast quantities of Bitcoin before it held significant value. The most famous of these is Bitcoins creator, Satoshi Nakomoto. Satoshi is thought to hold one million bitcoins or roughly 4.75% of the total supply (of 21 million). If Satoshi were to dump these coins on the market, the ensuing supply glut would collapse the price. The same holds true for any major holder. However, any rational individual seeking to maximise their returns would distribute Continue reading >>

This Man Bought $27 Of Bitcoins In 2009 And Theyre Now Worth $980,000

This Man Bought $27 Of Bitcoins In 2009 And Theyre Now Worth $980,000

The one-year rise of bitcoin's price. Source: CoinDesk Bitcoin Price Index It turns out that Koch's frivolous technology spending, against his girlfriend's wishes, actually turned out to be a great investment. I buy a lot of technical little things that I never have time to use, and this was the worst of all, the fact that I was buying fake money ," Koch told NRK. Its not fake anymore, at least not to Kristoffer Koch. Many people have become wealthy as a result of bitcoin's rise, although stories like this are rarely in the public eye. There's the story on the Bitcointalk forums about Kevin, who purchased259,684 BTC for under $3,000 in 2011 . Then there isErik Voorhees, who founded the bitcoin gambling site Satoshi Dice and sold it for 126,315 BTC , worth about $24.7 million at the current bitcoin price. And The Verge reported earlier this year that Satoshi Nakamoto , the Bitcoin networks mysterious founder, has an address with over one million bitcoins . Of course, we shouldn't forget about the person who bought two pizzas for 10,000 bitcoins back in 2009 . Now, if only that person had kept them, or perhaps forgot about them and rediscovered them years later like Kristoffer Koch did. The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies . Have breaking news or a story tip to send to our journalists? Contact us at [email protected] . Continue reading >>

Five Years Of Bitcoin In One Post

Five Years Of Bitcoin In One Post

By Timothy B. Lee By Timothy B. Lee January 3, 2014 Follow @binarybits The world's first fully decentralized cryptographic financial network, Bitcoin, launched five years ago today. The years since then have been a wild ride. The currency's value has risen from nothing to billions of dollars, and millions have been invested in Bitcoin-related startups. Here's a brief synopsis of Bitcoin's most important milestones. Jan. 3, 2009: Satoshi Nakamoto launches the Bitcoin network by creating the "genesis block," the first entry in Bitcoin's global transaction register. It includes the following text: "The Times 03/Jan/2009 Chancellor on brink of second bailout for banks." Jan. 9: Nakamoto announces Bitcoin version 0.1, on the Cypherpunks mailing list. Previously, in November 2008, he posted a paper to the list that explained the design of the Bitcoin network. Jan. 11: Some people immediately recognize that if Bitcoin catches on, its early users will get rich. Hal Finney estimates that if Bitcoin became the world's reserve currency, each Bitcoin could be worth as much as $10 million. "The possibility of generating coins today with a few cents of compute time may be quite a good bet," he says. Nakamoto agrees: "It might make sense just to get some in case it catches on." Finney mines bitcoins for a few days, but then he turns the program off because it makes his computer run too hot. Jan. 12: The first Bitcoin transaction occurs, as Nakamoto sends some Bitcoins to Finney. Aug. 15: Bitcoin is slowly attracting users. Tyler Gillies sends a note to the bitcoin-list e-mail list. "i just downloaded bitcoin, epic piece of software. the digital cash age has arrived." It was the only post to the mailing list that month. Dec. 30: Growing interest in Bitcoin leads to the first increase Continue reading >>

2010 - Bitcoin Wiki

2010 - Bitcoin Wiki

2010 was the year after the year of Bitcoin 's launch. 06 Bitcoin Market , the first exchange , is launched. 14 Martti Malmi starts the Bitcoin Wiki . 22 Laszlo Hanyecz , a GPU miner, makes the first documented purchase of a good in exchange for bitcoins ; two pizzas for 10,000 BTC. 11 News of the latest release propagates to Slashdot, causing a large influx of bitcoin users. 12 Bitcoin value begins rising rapidly, going from $0.008 to $0.08 over the next five days. 18 ArtForz becomes one of the earliest GPU miners. 15 184 billion bitcoins are created artificially in block 74638. 53 blocks into a chain fork, the updated chain overtakes the erroneous one and the fraudulent bitcoins cease to exist. 14 Block 79764 is the first to be solved with split allocation of the block reward. [1] 18 Jeff Garzik pays puddinpop 10,000 BTC (~$625) to make their Windows-based CUDA client open source. 29 kermit discovers a glitch that prevents transactions referencing small outputs from being confirmed. 01 The first public OpenCL miner is released. 07 The exchange rate begins rising again, from $0.06. 16 The earliest documented escrowed transaction occurs between nanotube and Diablo-D3 , with Theymos as the escrow. 28 The earliest documented short sale occurs between nanotube and kiba . 06 The market capitalization reaches $1,000,000 as the exchange rate passes $0.50. Continue reading >>

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