#Bitcoinâ 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.
What is the Bitcoin fork event? Bitcoin is known for its extreme volatility, as it is vulnerable to sudden spikes in its price and rapid declines that could wipe millions of dollars off the value of the currency within a few minutes. These changes are often mysterious to market watchers, due to the absence of the fundamentals of the digital currency or any links to the real economy. Bitcoin has another strange characteristic, as it was part of the software code that created the currency; From time to time, the equation that governs the rate of production of new tokens changes. As the timing of this event, called halving, approaches once again, Bitcoin supporters and skeptics disagree about the impact on the currency's value. [He follows....]