What is cybercurrency "mining?"?

This will not help you but I find “bitcoin” totally incomprehensible on its own, let alone “mining” of it. It’s kind of like the rules of cricket, it can be explained to me over and over again but it does not creep in.

“Mining” is done by performing calculations on a computer that are then verified by nodes on a network. When the calculation is verified, a new “coin” is created and tracked in the “blockchain” ledger.

The calculations get more and more difficult and require more and more computer time and energy to create more coins. The cost of mining is both a real monetary cost for the hardware and electricity, and because of the energy consumption, it is also considered “dirty” by anyone with an environmental sensibility.

Add to that it is all based on the greater fool theory.

You are buying really big numbers that are hard for computers to calculate but easily verifiable as authentic. Other people consider them to be valuable, so they have a dollar value. If people stop believing these numbers have value, then they won’t be worth anything.

@gorillapaws just like many other currencies then…

@Lightlyseared Except other currencies have the backing of the government that minted it.

How much would you pay me for the number:

796576271679147653206689157658392651961598712697856213876519767812359786579836327856127863517612379856231479651978326521378965321972639751236987326578123565329693217569532169783521678923145698715269872316?

Yes but the moment you stop trusting the government the currency loses value (see Zimbabwe circa 2000, pretty much the every currency in 2007, the dollar under trump). Replace government with maths and there’s no real difference.

@Lightlyseared But the government that issues fiat currency also has taxing authority to back the currency. Satoshi Nakamoto has no such authority.

@Lightlyseared ”...Replace government with maths and there’s no real difference.”

Whose math though? I have a new cryptocurrency; it’s called “Cryptopaws.” You pay me money and I’ll sell you numbers. Interested?

I’m giving @zenvelo a free Cryptopaw. You can have number 6. Suggested value is $1,800. Future value could be $180,000 or $0, hard to say.

@gorillapaws Me too, me too, can I please have a cryptopaw?

It has more cuddle-factor than any other crypto so it must be worth a bundle real soon now!

And, no, crypto currencies have little in common with government currencies except that they are all faith-based religions.
The fiat currencies of governments have laws and courts and cops backing the religion, AND the common interest of all the citizens of their respective countries. The cryptos have none of that except the ‘citizenry’ of owners who all really want to beat all their fellow citizens to the cash register.

@dabbler You can have the 2nd Cryptopaw: 87. Suggested value is $1,800, Future value unknown. You may have to declare this as a gift on your taxes though, so beware.

@gorillapaws Most gracious of you, indeed!
I have already budgeted a portion of the pluperfect present value appreciation
for popcorn, as we watch paws do their magic on ‘the market’ !

@gorillapaws Please save some Cryptopaws for me. (How are you going to be a Socialist when you make your first billion?)