Post
Topic
Board Mining
Re: Theoretical Inquiry - What is the purpose of the computational power for?
by
Meni Rosenfeld
on 17/05/2011, 04:24:15 UTC
I'm going to piggyback on benyben's question here.

I understand that by doing this, we secure the network, however, here's my question: WHY are we being "paid"? Is it because we are securing this network? To me, payment comes from doing work, but since we're not actually using Bitcoin's power to do computations or solve complex algorithms, it seems odd that we're being awarded to, in my view, do nothing.

The only reason I could think of is using it as an incentive to help push it into the online community.

Am I missing something here?
Payment comes from providing value. Securing the Bitcoin network is valuable.

If there was no incentive to mine, people wouldn't mine and the network would be easily destroyed.