I couldn’t articulate this question in google in a way that I’m not just forcefed crypto ads so I came here. All crypto come with a finite source of currency. When you buy coin, you’re buying from someone else. So when a coin is first made, who or where are you getting that coin from?
In a PoW system, bitcoin is mined through facilitating transactions, but if there’s no one to sell it they can’t work that transaction. As far as I know, crypto is being generated through mining, slowly increasing the total amount in circulation till it reaches its cap.
How would this work in a PoS system, if different at all?
Just curious, this question randomly struck me and like a catchy song in your head, random questions get stuck in my head unless I figure out the answer.
10 thoughts on “Where do the “first” coins come from?”
All crypto is not finite.
Not all coins/ tokens are programmed with a capped supply.
PoW and PoS are just different methods to solve a math problem to add a block.
The first block for bitcoin is called the genesis block.
Many other coins and tokens have a premine and all tokens are smart contracts (erc20, bep20, etc) with their token supplies defined within the contract.
Pos works similarly where minted coins go to stakers rather than miners
Satoshi was the first and only miner of btc after he deployed the code. For a while only he had btc until he went some to someone else.
I’m here waiting for some genius comment. To get the answer
I like to think of a block chain as a distributed database (for coins this is a database of transactions), where each block describes an update to the database. Now the database could begin with some amount of coins in it right at the start, so the first block describes exactly this: a single wallet with a certain amount of coins. Or the first block could describe an empty database.
A subsequent block could then describe the single wallet in the database, that the empty database is still empty or that some coins were sent to a new wallet, but also award a small amount of coins to the miner of that block. The next block would then describe a database that now includes that small amount that was awarded, plus award a new amount. And so on.
The first coins come from either mining, pre-mined, air drops, ICO, etc… they are just code that represents a coin. In object oriented programming you create an object. This object has attributes and methods to put it simply. A coin is an object that is created but it is created once and only once. These attributes are stored in a decentralized ledger that everyone knows about and can’t be changed. People can call methods on the coins to transfer, get balance, etc… essentially it’s just trusted code that is stored on the blockchain. They are made from nothing and hold value because there is a finite supply and we can buy goods and services with them.
Temple of Artemis
When a mommy crypto abd a daddy crypto love each other very much…
hey man .. good question .. how about .. whom do you get your brand spanking new fiat coin/bill/soon cdbc from? .. it’s all from transferring energy (printing – serial #/minting – stamped/mining conventional – serial #/ mining digital – block #/transaction id) – and it’s given a value by those wanting to use it to transfer that ‘stored’ energy into something they deem of “equal” value .. hope that helps .. good luck!
Well, remember those days when we used to collect stupid meaningless stuff which had no value although we loved to collect em? I think that’s how it started. As a cool new thing nobody has… And that feeling grew and bam.
It’s the same as buying a NFT in today’s scenario with 2008 mindset. Nobody has em, it’s cheap, it’s kinda unique, and well, it’s cheaper.