Read News For Me
Where does Bitcoin come from?
The process of generating new bitcoins is referred to as bitcoin mining, or it is the process of extracting finite bitcoins through the Bitcoin network. In complex terms, Bitcoin mining is the process of generating new Bitcoin by solving algorithmic puzzles; the people who are solving these puzzles are called Bitcoin miners.
These miners use highly advanced computers that can ultimately run complex mathematical problems. These algorithms are just a long series of numeric values that, when ordered correctly, result in the puzzle being solved.
When a miner solves a puzzle, they are rewarded in Bitcoin. The amount of Bitcoin that a miner receives upon completing a puzzle is referred to as the Bitcoin reward per block. Not only does mining allow the miner to produce and earn bitcoins it is also an important activity that helps the ledger of transactions upon which Bitcoin is based to be maintained.
As the years have passed, Bitcoin has evolved from an emerging to an established market. Consequently, the mining capability has excelled exponentially too. Due to the saturation of miners looking to solve puzzles and earn Bitcoins, this means that over time more miners have begun utilizing the most powerful and advanced technology creating very high barriers to entry for new miners.