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How Bitcoin Works
Bitcoin Mining
Bitcoin mining involves solving complex mathematical problems to verify and add new transactions to the blockchain.
Each time a block is completed, a reward in the form of Bitcoins is issued to the miner who solved the problem.
The mining process requires a large amount of computational power and electrical energy.
Forks and Updates to the Bitcoin Network
Forks in the Bitcoin network occur when changes are made to the protocol, which can lead to the creation of new cryptocurrencies derived from Bitcoin.
Updates, such as SegWit, aim to improve the network's scalability and efficiency, as well as add new functionalities.
Limitation on Bitcoin Supply
One of Bitcoin's most notable aspects is its limit on the total number of coins that can be created, set at 21 million units.
As new Bitcoins are mined, the reward per block gradually decreases until the maximum allowed amount is reached.
This supply limitation aims to maintain the scarcity and value of the cryptocurrency over time.
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