Topic: What is Bitcoin and Bitcoin Mining? (Read 138 times)

Bitcoin Mining is simply a competitive method of solving puzzles/problems in Bitcoin network to win or earn reward in btc and the right to add Bitcoin transactions to its Blockchain

bitcoins price has multiple factors.
fundamentally. the cheapest/base cost to acquire bitcoin is mainly from the most efficient mining cost on the planet. who wont sell at a loss. meaning they are the trend setter of the low of the low.

above that is the speculation price discovery
due to mining cost increases over lengthy periods going up due to the deflation of mining process. the underlying base cost on planet goes up, which then affects the speculative "demand" price discovery above that base amount
the speculative price discovery on the markets is not controlled by if there are 11mill coins in circulation(2012) or 19.2m coins (now) aka supply..
its a price discover of just the small allotment of coins on a market order list. due to peoples desires and sentiments of personal need


bitcoin mining is the process of special nodes called a mining pool collating transactions into a batch(block) and then sending a header of that data to users with special hardware called ASICS to then hash a complicated puzzle to create a hash that has to meet a certain standard
the complexity of he puzzle adjusts depending on how fast blocks are solved. which is 2016 blocks every fortnight, which equate to ~10min a block average
the rest of the network see this block arrive and check it. and if all the rules are met, they accept it as he latest block.

for those who solve a block and have it treated as the wining block to be added to the chain of blocks, they have included in their block a reward for their work. which this reward is an allotment of bitcoin

this reward started in 2009 at 50 coins and halves every 210,000 blocks(~every 4 years) which means today its 6.25btc a block reward(new coins created) and in 2024 will be 3.125btc a reward

this depletion of new coin supply means in 2012 there was 10.5bmbtc supply, in 2016 was 15.75m supply and eventually there will only ever be 21m supply as you cannot half the smallest unit the system has

OP on a sincere ground i appreciate your courage for creating this, but there are some instances whereby you're not expected to begin to teach a high school student abcd and 1234 again because it's a common norms they've got used to, by then you need to think of something more of value to add to what they have already known so they can appreciate you, your post is part of the first encounters one can had when coming across with bitcoin, but being a newbie your efforts needed to be encouraged to do more in research and findings on areas that had not been talked about.

Happens approximately every 10 minutes. The exact time between block confirmations is not fixed, but the Bitcoin protocol keeps it as close as possible to the average by adjusting the difficulty every ~2 weeks or 2,016 blocks.
Between this period the time for block confirmations can go above or below 10 minutes.

The coinbase reward is what's reduced every 210,000 blocks.

The supply factor is set in stone. But demand is influenced by many factors, including inflation rate and monetary policies which can affect investors ability to purchase.

All the above info is common knowledge here in the forum which being discussed since the beginning of the forum. Wikipedia or simply use the search bar here will give enough details for all the info you provided.

All general in about Bitcoin is available on this page of wikipedia https://en.m.wikipedia.org/wiki/Bitcoin

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What is Bitcoin?

Bitcoin is a decentralized cryptocurrency and an innovative payment network. It’s free of central banks and provides a peer-to-peer network to transfer money. Every transaction is transparent and immutable. Investors use Bitcoin as a means of exchange as well as a store of value to hedge against inflation.

Who gave birth to Bitcoin? Satoshi Nakamoto, the anonymous name of the creator of Bitcoin. Satoshi began to think of a new currency when he saw central banks publish cash which caused inflation during the economic crisis. Fiat could be of less value due to inflation and people couldn’t do anything. He created Bitcoin with the purpose to provide an alternative payment method without the control of the central government.

How does Bitcoin mining work?

What is Bitcoin mining? Bitcoin mining is the process of getting new Bitcoin. It also confirms the transactions in the network running in Bitcoin code and sync to all nodes on the chain. ‘Mining’ is performed on a computer for hash operations. The first computer to find the solution to complex math puzzles will get the right for the next block and this happens every 10 minutes. The ability to find the solution depends on the portion of the network’s total mining power.

The supply of Bitcoin is limited and the total supply is 21 million. The current Bitcoin is 19.2 million. The Bitcoin quantity will be reduced by 50% every time it reaches 210000 blocks or reduced once every four years by design.

What determines Bitcoin’s price?

Since its birth, Bitcoin has had volatile prices due to many factors. Unlike fiat, Bitcoin is not issued by the government or bank therefore monetary policy, inflation rate, or financial measurement don’t influence its price. Bitcoin acts more like a commodity. The price is influenced heavily by supply and demand. It depends on how many coins are in circulation and how many people are willing to buy.