Before we get to the nuts and bolts of Bitcoin mining, let’s begin by understanding what Bitcoin mining is all about. First, where do new Bitcoins come from? Are Bitcoins minted by the central banks? Obviously no, Bitcoin operates in a decentralized network with no central authority at play.
Since 2009, and especially in the last two years, we have been hearing curious words such as “cryptocurrency,” “bitcoin,” and “blockchain” thrown about… These evoke a feeling of mystery in most people, as if they were spells or magical incantations for those who are in the “circle of trust.”