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Bitcoin Mining
• Bitcoin mining is the process of creating new bitcoin by solving a
computational puzzle.
• Mining is a complex and energy-intensive process, which requires a lot
of computer power.
• It involves using a computer to solve a mathematical problem with a 64-
digit solution to create new coins.
• For each problem solved, one block of Bitcoins is processed.
• In addition, the miner who is first to solve the problem is rewarded with
a new bitcoin.
• These new coins are then stored virtually through an online database
called the blockchain
How Much a Miner Earns
• The rewards for Bitcoin mining are reduced by half roughly every four
years. When bitcoin was first mined in 2009, mining one block would
earn you 50 BTC. In 2012, this was halved to 25 BTC.
• By 2016, this was halved again to 12.5 BTC. On May 11, 2020,
the reward halved again to 6.25 BTC.
How many Bitcoins are left to mine
• When Bitcoin was first created by Satoshi Nakamoto in 2009, the
founder put a hard limit of just under 21 million on the total number of
bitcoins there could be in the world.
• In fact, the exact limit is 20,999,9769.
• They did this by putting a cap in the algorithm, meaning computers will
no longer be able to solve the equation - mine Bitcoin - once
20,999,9769 are mined.
• With the current total of just over 18.9million, that leaves 2.1million
bitcoins left to be mined.
Lost Bitcoin
• However, it is estimated that 3-4 million bitcoins are lost forever.
• That's because owners of the coin have forgotten their password,
misplaced hardware wallets and more.
• Once your bitcoin is gone, it's really gone.
•