How are the bitcoins created?
The new bitcoins are generated by a competitive and decentralized process called mining. This process is based on that individuals are rewarded by the network for his services. Bitcoin miners processed transactions and ensure the network using a specialized hardware and collect bitcoins in Exchange for this service.
Bitcoin Protocol is designed so that the new bitcoins created with a fixed rate. This makes bitcoin mining is a very competitive business. Much more miners have access to the network, it increases the difficulty to obtain benefits and miners must seek greater efficiency to reduce its operating costs. No central authority or developer has the power to control or manipulate the system to increase their profits. Each Bitcoin node that is in the world will automatically reject everything that does not conform to the standards expected of the system to continue.
The bitcoins created to predictable and decreasing speed. The number of bitcoins created each year is reduced to half automatically over time until the issuance of bitcoin stops completely when you reach 21 million of bitcoins. At this point, probably bitcoin miners will be maintained exclusively by numerous and small transactions fees.
Why the bitcoin has value?
The Bitcoin has value because they are useful as currency. It has the characteristics of money (durability, portability, fungibility, scarcity, divisibility and recognition systems) based on mathematical properties instead of relying on physical (such as gold and silver) properties or rely on centralized authorities (such as the Fiat currencies). Short, Bitcoin is backed by mathematics. With these attributes, everything you need this kind of money to maintain its value is confidence and adoption. In the case of Bitcoin, we can measure it with its growth in users, merchants, and emerging companies. As any currency, the value of the Bitcoin gets lonely and directly from the people who want to accept it as payment.
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