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Author: Admin | 2025-04-28
Bitcoin is a decentralized cryptocurrency that is created through a process called mining. Mining is a process of solving complex mathematical equations to authenticate and verify transactions on the bitcoin network. As a reward for their efforts, miners receive newly created bitcoins, known as mining rewards. But the question is, where do these rewards come from, and how are they distributed?To understand where bitcoin mining rewards come from, we need to first understand the process of mining. Bitcoin transactions are processed and validated by a network of computers called nodes. These nodes work together to create a public ledger of all bitcoin transactions called the blockchain.When a new transaction is made, it is broadcast to the entire network of nodes. Miners then compete to solve a complex mathematical problem that involves verifying the transaction and adding it to the blockchain. The first miner to solve the problem is rewarded with newly created bitcoins, and the transaction is added to the blockchain.The amount of bitcoins created as a reward for mining a block is fixed, and it is halved every 210,000 blocks. Initially, the reward was 50 bitcoins per block, but it was halved to 25 bitcoins in 2012, and then to 12.5 bitcoins in 2016. The current reward is 6.25 bitcoins per block.The process of mining is resource-intensive and requires a lot of computational power. Miners use specialized hardware called Application-Specific Integrated Circuits (ASICs) to solve the mathematical problems and earn mining rewards. These ASICs are expensive to purchase and
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