Bitcoin, Blockchain and Mining
- Bitcoin
Bitcoin is a digital currency that was created in 2009 by Satoshi Nakamoto. Bitcoins are generated through a complex cryptographic puzzle called mining, where computers race against each other to solve this puzzle. This results in transactions being verified and recorded into blocks. Each block has a timestamp associated with it, and if the block is not solved, the transaction is added to the next block. As long as the majority of the network agrees that the current state of the blockchain is valid, then the system continues. - Blockchain
The blockchain is essentially a public ledger that records bitcoin transactions. A blockchain can record any type of information, but bitcoins themselves are stored here. Since they are stored in the blockchain, they cannot be forged, counterfeited, or manipulated. - Mining
Mining is how new bitcoins enter circulation after they are awarded to the miner who solves the puzzle first. Miners use specialized hardware to perform the calculations necessary to create new bitcoins. They compete against each other to win these rewards
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Bitcoin price is falling because it is being tracked by many different people who are using different methods. People are also buying and selling bitcoins when they think the price is going up or down. This makes the price go up and down.
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