How is Bitcoin Created?
💡 Daily Reminder: Stay humble, stack sats
Bitcoiners,
Today, a little more than 19 million bitcoin have been created of the 21 million bitcoin to ever exist.
Here is a brief overview of how the last 2 million bitcoin will be created and a quick guide on how you can start earning bitcoin.
The Process
Bitcoin miners perform work and get rewarded in bitcoin and transaction fees for their effort.
Every 10 minutes or so, a new bitcoin block is found by a bitcoin miner. The Bitcoin miner gets 6.25 newly minted bitcoin ($120,000 USD) plus some extra transaction fees. This process continues until every halving period of about 4 years. After the next halving in April 2024, miners will be rewarded 3.125 ($60,000 USD) bitcoin plus transaction fees every 10 minutes. Subsequently, miners will be rewarded 1.5625 after the next halving in 2028.
The last 2 million bitcoin will be created and distributed throughout the world by this process until the year 2140.
How you can create Bitcoin
You can mine bitcoin yourself and earn newly minted bitcoin.
Bitcoin mining requires specialized hardware that goes for a few hundred dollars up to $10,000+ per unit. A few other electrical components and an internet connection are needed to confirm transactions. Connecting to a mining pool increases your chances of earning bitcoin while increasing the security of the bitcoin network.
Just make sure the price of electricity near you is not too high or this endeavor may not be profitable.
Do you mine bitcoin? Let me know by dropping a comment or messaging me on Twitter.
Happy Saturday,
-Pod
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Eric Podwojski
Founder, Bitcoin EDU
Twitter: @epodrulz
Disclaimer: This should go without saying: This is not financial advice. This is not investment advice. I write this newsletter for education and entertainment. Act accordingly.
