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Common questions of crypto newbies are where do the coins come from and how do they mine them?
Most people don’t realize that their own fiat currency (Pound, Euro, Dollar, etc) is created from thin air by so-called central banks. Central banks control and manipulate currencies in collusion with governments.
Crypto-currencies on the other hand are not controlled by any one – especially not governments or central banks. However, the coins are usually generated by the wallets as rewards for miners. It works basically like this: coins are sent from one wallet to another and these are called transactions. Transactions are stored in a public ledger called the blockchain. The blockchain is created by the miners and their reward is a certain amount of coins.
Source: http://blog.gbcoinfoundation.org/do-you-need-mining-help/
Most people don’t realize that their own fiat currency (Pound, Euro, Dollar, etc) is created from thin air by so-called central banks. Central banks control and manipulate currencies in collusion with governments.
Crypto-currencies on the other hand are not controlled by any one – especially not governments or central banks. However, the coins are usually generated by the wallets as rewards for miners. It works basically like this: coins are sent from one wallet to another and these are called transactions. Transactions are stored in a public ledger called the blockchain. The blockchain is created by the miners and their reward is a certain amount of coins.
Source: http://blog.gbcoinfoundation.org/do-you-need-mining-help/
