Bitcoin (BTC) Price Today

How are Bitcoins created?

Bitcoin has a confined supply of 21 million coins. This means that the number of Bitcoins can never reach beyond 21 million as its software limits them. No further bitcoins will be generated when the Bitcoin supply meets its upper limit.

New bitcoin is created during the process called mining, as transactions are relayed across the network, they are picked up by miners and packaged into batches called blocks, which are secured by complex cryptographic calculations. These miners receive rewards as compensation for spending their computational resources for every block that they have added to the blockchain. At the time Bitcoin was launched, the reward constituted 50 bitcoins/block.

Is Bitcoin (BTC) Secured?

Bitcoin is secured with the Secure Hashing Algorithm (SHA) -256, which belongs to the SHA-2 family of cryptographic hashes. The protocol is also used by its fork Bitcoin Cash (BCH), and several other cryptocurrencies. When Bitcoin transactions happen, they undergo security verification and are grouped into a block to be mined. Following this, Bitcoin’s PoW algorithm generates a hash for the block. As discussed earlier, Bitcoin uses the SHA-256 algorithm – and it always produces hashes with 64 characters.