Bitcoins are obtained through a process known as “mining” or by purchasing them on cryptocurrency exchanges.
Bitcoin Mining
Bitcoin mining is the process by which new Bitcoins are created and transactions are confirmed and added to the blockchain. It involves a network of miners, who use specialized computer hardware to solve complex mathematical puzzles. Here’s how it works:
Miners use powerful computers equipped with specialized hardware, known as Application-Specific Integrated Circuits (ASICs), to perform the calculations required for mining.
Miners collect and verify transactions made on the Bitcoin network. These transactions are bundled into a “block.”
Once a miner solves the puzzle, the proposed block is verified by other nodes on the network. If it’s valid, the block is added to the blockchain, and the miner is rewarded with newly created Bitcoins (the “block reward”) and transaction fees.
Approximately every four years, the block reward is halved, reducing the rate at which new Bitcoins are created. This process is known as the “Bitcoin Halving.”
Bitcoin Halving is used as a mean to combat inflation, and ensure the Bitcoin’s value in the future keeping its scarcity as “Digital Gold”. The total cap of Bitcoins is set at 21 million, Bitcoin halving ensures that it doesn’t go over the 21 million.
Cryptocurrency Exchange
The most common way for individuals to obtain Bitcoins is by purchasing them on cryptocurrency exchanges.
Please note that the cryptocurrency market is highly dynamic, and the popularity and rankings of cryptocurrencies can change over time. It’s essential to conduct thorough research and exercise caution when investing in cryptocurrencies, as they can be highly volatile and speculative assets.
