Quote from: Yakamoto on April 17, 2017, 04:19:02 AM

Quote from: shamzblueworld on April 17, 2017, 04:01:16 AM

First of all excuse me if you think its a noob question, but consider me a noob as I am trying to understand.

I've got a couple of questions about mining, (which I think fits in bitcoin section rather than the mining section)

First: Why do bitcoin needs mining?
Second: What do they actually mine?

The quick rundown for this is that in order to confirm a block (which contains transactions, which is why you get x confirmations for transactions you make), they need to find a specific alpha-numeric code which is "mined". Once this is found, they then confirm that block and rotate the next one in, confirming more transactions as they go along.

As a reward, the pool to find the block is rewarded with Bitcoins to distribute.

So mining is required to confirm the transactions, but how the bitcoin which is being sent/received in that transaction was created in the first place?
Which I had assumed before from the mining analogy was that mining creates bitcoin.