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1) Where do new Bitcoins come from?
One of the features that led to the fascination with Bitcoin is the way the cryptocurrency's developer, the pseudonymous Satoshi Nakamoto, linked the production of new currencies to the work required to prevent counterfeiting.
New Bitcoin currencies are produced through so-called mining by people whose computers perform a complex set of calculations to verify the validity of transactions on what is known as the blockchain, a digital ledger similar to a general ledger in accounting. Owners of mining machines compete with each other to win new cryptocurrencies known as a block validation reward.
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