Bitcoin, a virtual currency known as "digital gold", has attracted widespread attention around the world since its launch in 2009. As more and more people begin to understand and invest in Bitcoin, many people are curious: How is Bitcoin issued? What is its generation principle? In this article, we will explore the issuance mechanism and generation principle of Bitcoin in depth and unveil the mystery behind it.

The issuance mechanism of Bitcoin is one of its most core characteristics. Unlike traditional currencies, Bitcoin is not issued by the central bank, but is generated through a process called "mining". The mining process is not only a key link in the generation of Bitcoin, but also the basis for maintaining network security and transaction reliability. Simply put, mining is the process of using computers to solve complex mathematical problems to obtain Bitcoin rewards.

When the Bitcoin network was launched, the founder Satoshi Nakamoto set a total upper limit of 21 million coins, which means that the issuance of Bitcoin is limited. In contrast, legal currency can be printed and issued without limit through the central bank's policies. This scarcity is one of the important reasons why Bitcoin is used as a means of storing value. As time goes by, the difficulty of mining gradually increases, and a "halving" will be carried out every 210,000 blocks (about every four years), that is, the Bitcoin reward obtained by miners will be halved. This design not only controls the issuance speed of Bitcoin, but also effectively prevents the occurrence of inflation.

The mining process can be regarded as the "heart" of the Bitcoin network. It not only generates Bitcoin, but also ensures the security and reliability of transactions. In the Bitcoin network, all transaction records are packaged into a block and then verified by the computing power of miners. Once the block is verified and added to the blockchain, the transaction cannot be tampered with. The introduction of blockchain technology has made Bitcoin transactions highly transparent and secure.

In the mining process, miners need to use specialized hardware equipment for calculations. The computing power of these devices directly affects the efficiency and success rate of mining. With the popularity of Bitcoin, more and more miners have joined this highly competitive field, resulting in a gradual increase in the difficulty of mining. Therefore, many miners choose to join mining pools to improve the success rate of mining through collective cooperation. This method not only reduces the risk of individual miners, but also improves the overall mining efficiency.

In addition to mining, the issuance of Bitcoin is also closely related to the consensus mechanism of the network. Bitcoin uses the Proof of Work (PoW) mechanism, which means that miners need to compete to verify transactions and generate new blocks by consuming computing resources. The advantage of this mechanism is that it can effectively resist network attacks and malicious operations and ensure the security of the network. However, the PoW mechanism is also controversial, mainly due to its high energy consumption and impact on the environment.

The principle of Bitcoin generation is not only a technical issue, but also a revolution in thought. It breaks the barriers of the traditional financial system and gives individuals more financial freedom. The decentralized nature of Bitcoin allows users to trade without relying on banks or other financial institutions. This degree of freedom has attracted a large number of users, especially in some countries with unstable economies or imperfect financial systems, where people prefer to use Bitcoin to protect their assets.

In the world of Bitcoin, in addition to mining and trading, another important concept is "wallet". Bitcoin wallets are tools for storing and managing Bitcoins. They can be in the form of software (such as mobile applications or computer programs) or hardware (such as dedicated hardware wallets). Users can easily receive and send Bitcoins and view their balances and transaction records through wallets. The security of the wallet directly affects the security of the user's Bitcoin, so it is crucial to choose a safe and reliable wallet.

With the popularity of Bitcoin, more and more merchants and institutions have begun to accept Bitcoin as a means of payment. This trend has not only promoted the use of Bitcoin, but also prompted more people to become interested in it. For example, some well-known online stores and service platforms, such as Amazon and Tesla, have begun to accept Bitcoin payments. This phenomenon not only verifies the feasibility of Bitcoin as a payment tool, but also further enhances its market value.

However, despite the broad prospects of Bitcoin, its price volatility is huge, and investment risks cannot be ignored. The price of Bitcoin is affected by many factors, including market demand, policies and regulations, and technological progress. When participating in Bitcoin investment, investors need to fully understand market dynamics and make prudent decisions. Only through scientific investment strategies and risk management can investors gain benefits in this uncertain market.

Globally, the influence of Bitcoin has gradually expanded, and many countries and regions have begun to regulate and legislate on it. Policy differences in different countries have led to different usage environments for Bitcoin. In some countries, Bitcoin is regarded as a legal means of payment, while in other countries, the government has adopted a restrictive or prohibitive attitude. This policy uncertainty makes the future development of Bitcoin full of challenges.

In short, the issuance and generation principle of Bitcoin is a complex and fascinating topic. Through mining, blockchain technology and the concept of decentralization, Bitcoin has successfully built a new financial ecosystem. Despite facing challenges in many aspects such as policies, technology and markets, Bitcoin still attracts more and more attention and investment. In the future, with the advancement of technology and the maturity of the market, Bitcoin and the blockchain technology behind it may continue to lead the transformation of the financial field. I hope that readers can better grasp the opportunities and challenges of this era in the process of in-depth understanding of Bitcoin.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

How is Bitcoin issued? What is the principle of Bitcoin generation? Unlike most currencies, Bitcoin does not rely on a specific monetary institution to issue it. It is generated through a large amount of calculations based on a specific algorithm. The Bitcoin economy uses a distributed database composed of many nodes in the entire P2P network to confirm and record all transactions, and uses cryptographic design to ensure the security of all aspects of currency circulation. The decentralized nature of P2P and the algorithm itself can ensure that the currency value cannot be artificially manipulated by producing a large number of Bitcoins. The design based on cryptography can make Bitcoin only be transferred or paid by the real owner. This also ensures the anonymity of currency ownership and circulation transactions. The biggest difference between Bitcoin and other virtual currencies is that its total number is very limited and has extremely strong scarcity. The currency system had no more than 10.5 million in 4 years, and the total number will be permanently limited to 21 million thereafter.

Bitcoin Generation Principle

The Bitcoin network generates new Bitcoins through mining. The so-called mining is essentially using a computer to solve a complex mathematical problem to ensure the consistency of the Bitcoin network's distributed accounting system. The Bitcoin network automatically adjusts the difficulty of the mathematical problem so that the entire network gets a qualified answer about every 10 minutes. Then the Bitcoin network will generate a certain amount of new Bitcoin as a bounty to reward the person who gets the answer.

How to issue

Every computer in the p2p network is confirming the transaction, and the way to confirm the transaction is to calculate a very complex mathematical problem. Whoever calculates it first will broadcast the message, and after confirmation by the entire network, he will get some Bitcoin out of thin air. This process is called mining. Miners here play the role of currency issuers.

This process is actually a trial and error process. The more random hash collisions a computer generates per second, the greater the probability of calculating the correct hash value first. The miner who first calculates the correct value can package the Bitcoin transaction into a block and then record it on the entire blockchain, thereby obtaining the corresponding Bitcoin reward. This is the Bitcoin issuance process, and it also encourages miners to maintain the security and immutability of the blockchain.

Simply put, it is issued about every ten minutes. When Satoshi Nakamoto designed Bitcoin, he set its total amount to 21 million, and adjusted the difficulty of calculating the hash value according to the mining power of the entire network, keeping the block time at about 10 minutes.

New bitcoins are generated by each node in the network after solving a certain mathematical calculation (i.e., creating a new block). This generation process is considered difficult to reproduce and proof of work. The rewards for solving the problems are automatically adjusted, so that in the first 4 years of the Bitcoin network, a total of 10,500,000 BTC will be generated. This amount is automatically halved every 4 years, so that in years 4 to 8, 5,250,000 BTC will be generated, in years 8 to 12, only 2,625,000 BTC, and so on. In the end, the total number of bitcoins generated is close to 21,000,000 BTC.

In addition, a system is built along with the network. On average, every 10 minutes, this system attempts to collect new bitcoins from blocks generated on the network. The difficulty of creating new bitcoins varies with the number of people involved in trying to generate new bitcoins. The entire network agrees on these actions based on the time it took to generate the first 2016 blocks. Therefore, the difficulty coefficient is related to the average computing resources invested in generating these new bitcoins during the time it takes to generate these earliest blocks. The probability that someone "discovers" a block is the ratio of the computing resources used by him to the computing resources of all the blocks generated on the network at the same time.

Issuance period

Initially, each miner who wins the right to record can get 50 bitcoins as a reward, and then it will be halved every 4 years. So far, 80% of the total amount of bitcoins has been mined, and the mining reward for each block has been halved to 12.5 bitcoins. It is expected that by 2140, bitcoins will no longer be able to be further subdivided, thus completing the issuance of all currencies.

Therefore, after 2140, the number of bitcoins on the market will not only no longer increase, but will only decrease. Because it is inevitable that many people will lose their bitcoin wallets or forget their private keys for various reasons. Since blockchain is a decentralized system, these lost bitcoins can never be recovered.