The gen
option isnt copiously described in the sample bitcoin.conf file ... does that mean that the daemon started up will attempt to mine for coins?

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2 Answers
That configuration parameter no longer has any effect because the CPU mining engine has been removed from the mainline client.
Earlier versions of the client did have a built in miner and the gen parameter controlled if it ran in the background. Given the much higher difficulty today the developers felt it no longer served a purpose and would be confusing to new users (who could wait months of even years without generating a single coin). It was removed from the client. The wiki should be updated to reflect that.

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3This is incorrect: the built in miner was removed from the GUI, but remains accessible in bitcoind. – Pieter Wuille Nov 13 '11 at 17:24
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2Your answer is now correct. RIP internal miner (see https://github.com/bitcoin/bitcoin/pull/7507) – Pieter Wuille Mar 16 '16 at 12:46
Bitcoin core executables (bitcoin-qt and bitcoind) cannot even attempt to mine real Bitcoin since 2016. At https://github.com/bitcoin/bitcoin/pull/7507 we can read
This code removes the internal miner which is only useful on Testnet. This leaves the internal miner that is useful on RegTest intact.
With -gen=1
on the command line or in the configuration file, in conjunction with regtest=1
bitcoind
will use its built-in miner to search for blocks in the regtest network. It is inefficient, does not support pools, and does not use GPUs. It is only left as a reference and for testing, and has been removed from mainnet completely.

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when i "setgenerate true" in bitcoin-qt console window, and then "gethashespersec" it reports my hashing power, and "getgenerate" returns true, isn't this a proof that it's mining ? – Farghaly May 31 '14 at 15:56
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Yes, but you'll never mine anything with it. It is far too slow. – Pieter Wuille Jun 01 '14 at 07:02