Mining is the process required to secure each of these blocks and, in doing so, releases new units of the cryptocurrency. These units are known as the ‘block reward’. In bitcoin’s case, the block reward is currently 12.5 bitcoins, though this halves every four years or so.
The miner’s role is to carry out this process by solving complex algorithms – an ongoing task which can be made easier or more difficult. By altering the complexity of the algorithms, miners can ensure they keep the processing time of blocks roughly constant. Because of their crucial role in the network, miners exert significant control over bitcoin, especially as mining has now become big business.
Once these tokens are in circulation, they can be freely exchanged via an exchange, and stored in a digital wallet. When you trade bitcoin CFDs with IG, you never actually own the underlying asset, so you won’t need a wallet or an exchange account.