Bitcoin was created back in 2008 by anonymous programmers –more specifically, the mastermind and original idea behind this project is credited to Satoshi Nakamoto. This crypto-currency is reproduced by a network of users with the help of powerful computer processors and hardware. This method is known as “Bitcoin mining.” The initial open-source program estimated that only 21 million coins would ever be created which ultimately lead to a great deal of speculation that has made the price of one single Bitcoin sway from more that thousands of dollars to a much lower amount in just a matter of days.
Bitcoin continues to be a truly revolutionary idea. When programmers came up with the mining process of Bitcoins as a way to validate transactions and also reward early adopters really gave the digital currency validation. This helped make the network even stronger as it distributed the coins across the most interested individuals. The Bitcoin mining method distributes coins on the network to the person that presents the solution first. The moment the Bitcoin world started to get competitive is when the mining pools begun which allowed multiple users to work together to mine. This way, the pool actually presents the winning solution to the entire network and once the the reward is received it is evenly redistributed to everyone in the pool.
In addition, the Bitcoin mining system is designed so that the work required to find new coins rises at a steady pace as each coin is uncovered. According to a statement by ABC News this makes Bitcoin’s growth rate, also known as inflation, steady and predictable.