How do does solving mathematical problems create bitcoins?
In: Technology
Bitcoins don’t just exist out in the wild for us to find. When the person who invented Bitcoin wrote the paper that laid out the plan for Bitcoin, they needed put a Proof of Work system in place, some sort of barrier so that Bitcoin would actually take work to collect. If you can get them easily, they won’t have any value, and currency needs value if it is to function like a currency. The mathematical problem is a sort of imposed artificial scarcity, limiting the quantity of Bitcoin so that it has value. Solving reliably difficult math problems is a good way to do that.
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