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Friday, July 28, 2017

How Are New Bitcoins Created? A Brief Guide to Bitcoin Mining

How Are New Bitcoins Created? A Brief Guide to Bitcoin Mining

Bitcoin is often compared with gold, and one of the chief factors of similarity it the way they’re both obtained. Similarly to gold, new Bitcoins are created via the process called “mining.”


In fact, Bitcoin mining has a two-fold purpose: it allows for the creation of new coins and facilitates the processing of transactions in the network.


Another parallel with the precious metal is that there’s a limited amount of Bitcoins that can ever be mined: no more than 21 mln coins. As of 2017, nearly 17 mln Bitcoins have already been mined.


Mining can be quite a competitive task as new Bitcoins are created at a predictable and fixed rate. Those rates have been defined by Satoshi Nakamoto, the creator of Bitcoin, in the white paper published in 2008.


Full story at http://bit.ly/2h8Tw3I


Source: CoinTelegraph


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