What does mining a bitcoin really mean?

2/08/2018

Bitcoin mining explained

2017 was the year when curiosity about the Bitcoin hit an all-time high, thanks largely to a dramatic surge in its value. Notwithstanding recent fluctuations in its price, interest remains strong in the original cryptocurrency, which was launched in 2009.

One question everybody has is what is the process of 'mining' that creates new Bitcoins and how does the blockchain technology underpinning the cryptocurrency really work. Here's how...

Making of the coin

Bitcoins are generated by a mathematical formula, or algorithm. It started with 50 coins in Jan 2009, the formula produces batches of new coins every 10 minutes.

These coins can be 'mined' by anyone willing to dedicate computing power.

Then it goes public

The blockchain forms a permanent, publicly available history of every bitcoin transaction.

Miners get more

Miners are rewarded for their work with new bitcoins automatically generated by the bitcoin algorithm.

Is there a mining limit?

The bitcoin formula sets a limit of 21 million coins. This limit is expected to be reached around the year 2140.