What is Bitcoin?

A unique set of numbers will start your wonderful journey of owning Bitcoin. Back on January 3, 2009, the creation block of Bitcoin came out of nowhere, announcing the arrival of a new era. Bitcoin cleverly uses distributed ledger technology to get rid of the constraints of traditional third-party institutions. This innovative design was given the name "blockchain" by Satoshi Nakamoto.

In this exciting field, users are willing to contribute their CPU computing power, run a special software, and become "miners" in this network. They jointly maintain this "blockchain" to ensure the security and reliability of every transaction. In this process, new Bitcoins are also constantly generated, injecting a steady stream of vitality into the entire network.

Bitcoin transactions are also extended on this network. Computers running the software compete to crack complex cryptographic puzzles, which contain multiple transaction data. Once a "miner" successfully solves the problem, he will receive a generous reward of 50 Bitcoins, and the relevant transactions will also be permanently recorded on the blockchain.

As the number of miners participating in "mining" continues to increase, the difficulty of each problem is gradually increasing to ensure that the productivity of Bitcoin is stable at about one every 10 minutes. This mechanism ensures the stable operation of the Bitcoin network and encourages more people to join this world full of challenges and opportunities.

The issuance process of Bitcoin is full of wisdom and creativity. The system automatically adjusts the difficulty of mathematical problems to ensure that a qualified answer can be generated every about 10 minutes. Subsequently, the newly generated Bitcoin will be awarded as a block reward to miners who successfully solve the problem. This reward mechanism not only motivates the enthusiasm of miners, but also ensures that the supply of Bitcoin is within a controllable range.

At the beginning of Bitcoin, the block reward was as high as 50. However, as the total amount continues to increase, the reward is gradually decreasing. When the total amount of Bitcoin reaches 10.5 million, the block reward is halved to 25; when the total amount increases to 15.75 million, the reward is halved again to 12.5. This design ensures that the total number of Bitcoins will be permanently limited to about 21 million, giving scarcity and value to the entire monetary system.