How does the number 21 relate to the mining process in cryptocurrencies?

1 answers

• Ed BrownOct 17, 2023 · 2 years ago
  In the mining process of cryptocurrencies, the number 21 holds great significance, especially in the case of Bitcoin. It represents the maximum number of bitcoins that can ever be mined - 21 million. This finite supply is a key feature of Bitcoin and contributes to its value as a digital asset. Miners, who are responsible for validating transactions and securing the network, compete to solve complex mathematical puzzles. As a reward for their computational work, miners receive newly minted bitcoins. However, the reward for mining new blocks is halved approximately every four years through a process known as the 'Bitcoin Halving.' This gradual reduction in mining rewards ensures that the total supply of bitcoins will never exceed 21 million, making it a deflationary currency.
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