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Mining

"Mining" is how additional Bitcoin is added to the blockchain.

Mining

Mining, or issuance, of new coins is performed by "miners" at a current rate of 6.25 bitcoins per block, which are "discovered" by miners running specialized computers, or "rigs", that process calculations at astronomical rates to find new blocks to add to the block chain. Miners are rewarded with new coins each time a new block is mined.

Because mining requires the purchase of expensive equipment that uses a lot of electricity, miners are only incentivized to mine additional blocks when the price of Bitcoin is high enough to warrant the costs of mining. Thus, when the price of Bitcoin is low, less Bitcoin is mined, and when the price is high, mining increases. This naturally helps to control both inflation and disinflation of Bitcoin.

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