Where does Bitcoin come from?

With paper money, a government decides when to print and distribute money. Bitcoin doesn’t have a central government. With Bitcoin, miners use special software to solve math problems and are issued a certain number of Bitcoins in exchange. This provides a smart way to issue the currency and also creates an incentive for more people to mine. And since miners are required to approve Bitcoin transactions, more miners mean a more secure network. The first commercial Bitcoin mining products included chips that were reprogrammed for mining Bitcoin; these chips were faster but still power-hungry. ASIC or “application specific integrated circuit” chips are designedspecifically for Bitcoin mining. Basic technology has made Bitcoin mining even faster by using less power. As the popularity of Bitcoin increases, more miners joined the network, making it more difficult for individuals to solve the math problems. To overcome this, miners have developed a way to work together in pools. Pools of miners find solutions faster than the individual members and each miner is rewarded proportionate to the amount of work he or she provides. Mining is an important and integral part of Bitcoin that ensures fairness while keeping the Bitcoin network stable, safe and secure. Bitcoin is now being recognized as a legal method of payment.

This new Disruptive Technology is a lot to understand but this will be worth your time to read.


Reference sites: www.newwealth.info and www.newwealth.tech.