BITCOIN BASICS-CREATION OF COINS

Controlled supply: must be limited for the currency to have value-any maliciously generated currency needs to be rejected by the network
Bitcoins are generated during the mining –each time a user discovers a new block
The rate of block creation is adjusted every 2016 blocks to aim for a constant two-week adjustment period
So, the basics of the Bitcoin is the creation of coins the economic aspects, that I have mentioned earlier like you require a kind of control supply of money. So, you must limit the currency to have their value. If you put up a lot of currency in the system, it will gradually reduce the value of that particular currency. So, that comes from the economic concept. So, any such maliciously generated currency, you need to reject those and you need to accept the actual currency which is flowing in your system.

Now, this bitcoins the new bitcoins that need to be generated like normal currency.

So, this new bitcoins are generated during the Bitcoin mining timing. So, each time a user discovers a new block that particular procedure we call mining.

So, the methodology for Bitcoin mining we look into more details, but whenever a The particular person generates a new block during that time, the system generates some new Bitcoin and that person who is investing his or her power and system power and the time to generate the new blocks by participating in the mining procedure, for those people they are awarded that newly generated bitcoin. But as I have mentioned that this The flow of money or the generation of new bitcoins that need to be regulated; so, you should have some rate at which you need to adjust a block creation.read more