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How Does Bitcoin Mining Work?

Bitcoin mining is the process of adding new transactions to the Bitcoin blockchain. It’s a tough job. People who choose to mine Bitcoin use a process called proof of work, deploying computers in a race to solve mathematical puzzles that verify transactions.To entice miners to keep racing to solve the puzzles and support the overall system, the Bitcoin code rewards miners with new Bitcoins. “This is how new coins are created” and new transactions are added to the blockchain, says Okoro.

Importantly, that investor viewpoint is not new. It cycles in when conditions are right (and vice versa). It also brings the ineffective warnings of an overpriced market with it.Looking toward a good 2022 stock market, there is no apparent reason to expect these issues to change.

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