Bitcoin works like a peer to peer network, where everyone in the world is connected by an internet network. Bitcoin is obtained as a reward / reward / reward in the process of solving mathematical problems created and solved by computers on the blockchain network. The process of solving these problems is called mining.

The value of the bitcoin that is on the blockchain is of limited value, but it cannot be used up because the reward can be in the form of a fraction, such as 0.0001 BTC or smaller.

As time goes by, of course the value of Bitcoin obtained will get smaller because of the many problems that have been solved on a blockchain, and the level of difficulty of the problems will increase, so that more sophisticated hardware hardware is needed to solve the problems there is.

Bitcoin is like a normal currency, but it is stored on hardware such as hard disks, and other storage media, it is encrypted and it is very difficult to crack code to break down its security.

If likened to money has stored in the wallet, then bitcoin can also be placed on online wallets that are scattered on the internet, for example coinbase.

Who actually pays for mining done?

Answer:

What pays for mining is money that is invested in the bitcoin network itself. At first people started buying bitcoins that were of no value with the original currency, over time and more and more people who believed in crypto currencies the value went up, this was the basic concept.

For comparison, if you have played online games like Ragnarok Online, there are market activities using Zeny currency, which are used to buy items in the game world, but there are times when the Zeny currency is traded in the real world as well as by fellow gamers, this actually the same as the concept of bitcoin itself. There is a value agreed upon by the buyer and seller to convert it into the original currency.