George Levy - What if Bitcoin Miners Stopped Mining?

hello blockchain visionaries I'm George levy I believe we're changing the world one blockchain at a time and if we use this technology properly we're bound to make the world a better place for everyone so to help make this change happen today I'm going to answer a question from one of the students of the blockchain and Bitcoin fundamentals course Eric asks what if one day the Bitcoin miners decided to stop mining Bitcoin what happens then that is an excellent question and I'll give you the answer right after this [Music] in this video we're going to be talking about the scenario if Bitcoin miners suddenly stop mining first thing I want to caveat is that there has been no threat of Bitcoin miners actually deciding to stop mining but this is a question pops up regularly what would happen if Bitcoin miners decided to stop mining well before we get into that let's talk about first the role of Bitcoin miners Bitcoin miners are a group of people who actually process and confirm transactions anybody can become a Bitcoin miner if you wish you can download the software yourself and you can start mining bitcoins that being said the most successful Bitcoin miners have very powerful computers and if you're going to try to do it at home with your regular computer odds are you're not going to be able to mine any cryptocurrency that being said the role of these Bitcoin miners is to process and confirm transactions and there are a lot of them around the world thousands and thousands and even you could be one if you wish in the process these Bitcoin miners secure the network and they do that by using their powerful mining computers the Bitcoin network is a massive computer network with thousands and thousands and thousands of computers who are undergoing this process of mining bitcoins and for doing this role these Bitcoin miners are rewarded in Bitcoin I have covered at length the process that Bitcoin miners are actually rewarded in Bitcoin there's a common misconception by some people who think that if you're actually mining Bitcoin you actually get paid in dollars euros or yen and that's not the case at all you actually get rewarded in Bitcoin so one key thing I want to say is this if you assume that Bitcoin miners are rewarded in Bitcoin then you need to understand how the whole thing plays in practice what would really happen I'm going to take you to the unconfirmed transactions page so you can see this is that as we our work going day by day and our Bitcoin transactions Bitcoin transactions eventually wind up first in something known as the memory pool what you're seeing here is the memory pool the memory pool is where unconfirmed transactions sit whenever you make a transaction with someone else that is whenever you send bitcoins to someone else so you receive bitcoins for someone else the first place that transact Gault's is into the men pool where it is an unconfirmed transaction from this pool of unconfirmed transactions miners group transactions and assemble them into blocks that is how new blocks are created and added to the blockchain the Bitcoin miners go to the mempool they cluster a group of transactions build them into a block and successfully at them to the Bitcoin blockchain when they're able to do that that miner that successfully gets to add the new block to the Bitcoin blockchain gets rewarded in bitcoins key things I want to point out the Bitcoin network has thousands and thousands of miners distributed all around the world and many of these miners are assembled in waters known as pools these mining pools have hundreds and thousands of different miners all grouping together to join forces in order to be able to create the next block to get out of to the Bitcoin blockchain the bottom line is this if all the miners around the world every single one of them decided to stop mining bitcoins then Bitcoin network as such would probably become rendered worthless or useless and that's because you simply could not confirm any of the transactions that get sent to someone else but it's a very unlikely scenario because in the process these Bitcoin miners would automatically destroy their entire asset base of bitcoins and that is what would happen if Bitcoin miners decided to stop mining I hope you enjoyed this video and that you learned something in the process I bring you brand new videos every single week so I invite you also to subscribe so we can stay in touch also if you have any comments or suggestions please leave them below I would love to hear from you until next time we are changing the world one blockchain at a time I'm torch levy thank you for watching you

Channel: George Levy

Views: 12,386

Keywords: bitcoin mining, bitcoin miners, blockchain institute of technology, george levy, george levy bitcoin, george levy blockchain

Id: gUsCOA4C_xE

Length: 4min 58sec (298 seconds)

Published: Thu Aug 16 2018