What is Bitcoin Mining?
Because Bitcoin uses a computer network for processing. This requires quite a lot of computer power. is to take your own computer used to process bitcoin transactions by the reward for processing successfully is bitcoin And this is the way to produce bitcoins.
Anyone can bring their own computer to the network. But this bitcoin mining consumes a lot of computer power and energy. It may make mining bitcoins not worth the electricity and other expenses if it is not well designed.
Many companies have come up with serious bitcoin mining. A large computer system was set up as a factory warehouse ever. By mining this large bitcoin we call it. bitcoin mine.
How many bitcoins are there?
Of course, bitcoin doesn’t have a central bank to control its production like other currencies, but it’s not like anyone can produce any amount of bitcoin. Bitcoin mining is a way to generate bitcoins. Or bring it out to use it. It is comparable to printing money from a central bank.
All bitcoins are limited to 21 million bitcoins every time a computer system successfully processes a transaction. Or a new block is born in the blockchain, which happens approximately every ten minutes. Miners will also receive a certain amount of bitcoins as a reward. At the beginning of 2020, the reward is 12.5 bitcoins, but every four years the amount of bitcoins mined gets is halved. We call this phenomenon Havling (halving), and after the halving on May 13, 2020, the Bitcoin mining reward is reduced to 6.25 bitcoins per block only. The purpose of halving is to prevent inflation. Not allowing anyone to produce bitcoins and make the bitcoins limited
By 2104, all 21 million bitcoins will be mined. Thus, no more bitcoins can be created in the world. This makes even if one bitcoin is worth billions of baht. We cannot produce bitcoins to reduce their value. or solve the problem of deflation But the advantage of Bitcoin is that Bitcoin can be divided into eight decimal places. Although Bitcoin will be of great value in the future. We do not need to spend one bitcoin at a time. But we can use 0.000000001 bitcoins at a time.
Who is the creator of Bitcoin?
After Satoshi Nakamoto revealed Bitcoin to the world in 2008, no one has been able to identify his true identity to this day. Satoshi may be a Japanese man by his name. or a group of people from somewhere
But even the creators of the bitcoins are kept secret. Bitcoin has inspired hundreds of thousands of other cryptocurrencies in the world. We call these currencies Altcoins.