How Do You Mine for Bitcoins?

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Dec. 20 (Bloomberg) –- Bloomberg’s Matt Miller reports on how you mine for Bitcoin, which isn’t as easy as it sounds. He speaks to Trish Regan and Adam Johnson on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)

Date 10 of bloomberg tv's 10 days of bitcoin.

We are looking at bitcoin mining.

It involves computers, you have transactions that are making some in the game of bitcoin, it is not easy to do.

It is highly difficult.

It is not something that most people on the forms i have been running around and have recommended for beginners.

That may explain just basically what happens.

There are tens of thousands, maybe hundreds of thousands of people trying to mine for bitcoin.

Let's be clear, when you say mining for bitcoin, you mean that they are trying to identify all the codes that are out here.

The codes get longer and longer.

What they are basically doing is , it is an open-source system and companies sell the big mining rakes.

-- rigs.

I want to back up viewers may not understand.

There is a finite amount theoretically of bitcoin out there.

Assuming that we don't all decide to change it.

There's only 21 million bitcoins to be made.

It is designed that way.

Only one person gets to verify each sequential block of transactions.

The person who does that solves a huge computational problem, the math is getting bigger, and is rewarded right now with 25 bitcoins per transaction.

That reward will change over time.

As the problems get more difficult to solve and more people use it quite, the reward in terms of bitcoin's reward will get smaller and he transaction fees will be larger.

We have a chart and it is difficult to explain, but let me point out that as it is right now, the network to verify and prove these transactions is doing 10 trillion computations per second.

It is hard to fathom.

They string together lots of these.

Exactly, adam.

You can buy these machines and there's a new one coming out in a couple of months.

He goes for $6,000. anyone who is serious about this will buy a lot of them.

The problem is that creates a huge electricity bill.

People debate how easy it is to break even with this.

He says that would be priced around $1000, you can break even in a week.

Why do you keep all the machines for himself?

He says that he might keep a field.

I said, you sound like the guy at the gold rush who selling pickaxes and widens.

Thus widens -- wagons.

You could buy bitcoin from someone else or from an exchange.

You could sell goods and services to receive bitcoin in return.

You could mine bitcoin or you could be given bitcoin for christmas.

That is what i am doing right now.

Adam, here you go.

Trish, here you go.

I found out, you can go to the bitcoin christmas party last night.

There is a bitcoin christmas party?

This is a cool thing.

Laser bee is the name of the company.

Essentially what it is is the public key is on the front.

They come blank and you load in whatever amount of bitcoin you want to give.

It can give -- it can be 1/10 of a bitcoin oriole pick line.

When you break through the security tape, you will find a private key, breaker is open.

You rip it from this site and you will find a private key on the inside that you can access and load into your wallet.

This is what i put on my phone so that when i want to buy or sell or whatever, i put this up on the computer and it reads it and goes to debit my account.

Got it.

Open up a blog chain wallet.

I think it is so cool.

They are making them for graduation and college funds.

If you have a baby, you can get ones that say, it's a boy or it's a girl.

I also have ones that say "it's a gender-neutral baby." class that is very in the decline spirit.

I found this because a friend of

This text has been automatically generated. It may not be 100% accurate.


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