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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.

That growth environment will include rising inflation and interest rates. Those upward shifts naturally accompany healthy growth periods as the demand for resources, products and services rise. Importantly, the Federal Reserve has laid out the rationale for not interfering with that natural growth transition.It's not exactly a fad, but there is a widespread willingness to pay up for a growth story. Classic fundamental analysis takes a back seat. Even negative earnings are ignored. In fact, positive earnings seem to be a limiting measure, producing the question, "Is that all you've got?" The preference is a vision of untold riches when the exciting story plays out as expected.

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Created: 2020-08-04

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