The Bitcoin Mining Process

What is Bitcoin
• Bitcoin is a decentralized digital currency, without a central bank or
single administrator, that can be sent from user to user on the peer-to-
peer bitcoin network without the need for intermediaries.
• Every transaction is publicly broadcast to the network and shared from
node to node.
• There are currently 18,925,137 bitcoins in existence. The number
typically changes about every 10 minutes as new blocks are mined.

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.
•

It is estimated that 900 new bitcoins are mined per day.

• On average, 144 blocks are mined daily and each contains 6.25 Bitcoins.
• It is believed that the last bitcoin will be mined in 2140.
• No new bitcoins will enter circulation after the mining of the last one.