Bitcoin Store - What is it? - WikiKnowledge


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Participants with a small percentage of the mining power stand a very small chance of discovering the next block on their own. For instance, a mining card that one could purchase for a couple of thousand dollars would represent less than 0.001% of the network's mining power. With such a small chance at finding the next block, it could be a long time before that miner finds a block, and the difficulty going up makes things even worse. The miner may never recoup their investment. The answer to this problem is mining pools. Mining pools are operated by third parties and coordinate groups of miners. By working together in a pool and sharing the payouts among all participants, miners can get a steady flow of bitcoin starting the day they activate their miner. Statistics on some of the mining pools can be seen on Blockchain.info.Regulatory ComplianceMining is also the mechanism used to introduce Bitcoins into the system: Miners are paid any transaction fees as well as a 'subsidy' of newly created coins. This both serves the purpose of disseminating new coins in a decentralized manner as well as motivating people to provide security for the system.That doesn’t mean that there are no outlets to spend your bitcoin, however, far from it. 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Technology is a tool to help people secure what they value. Security requires people to act. 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