Virgin Bitcoin

Virgin Bitcoin

Virgin Bitcoin is born from the process of mining. Miners solve complex mathematical problems using their computers, which in turn validate transactions on the Bitcoin network. Once the problem is solved and the transactions are validated, they are added to the digital ledger known as the blockchain. The miner is then rewarded with brand new, 'virgin' bitcoins directly from the Bitcoin software. This is how new bitcoins are introduced into the market.
Virgin Bitcoin refers to bitcoins that have never been involved in a transaction on the Bitcoin network. They are akin to crisp, new banknotes issued by the central bank, with no transactional history. Counter to traditional currencies where all units are identical, every bitcoin can be tracked back to where it was mined. Therefore, some entities place a higher value on Virgin Bitcoin because it holds no history of past transactions and is 'clean'. Javascript will be helpful in outlining important points for Bitcoin beginners.

Creation of Virgin Bitcoin

Why Virgin Bitcoin is Valued

'Used' bitcoins can often be tracked back to their original source, allowing anyone to view the transactional history of that individual coin. Consequently, a bitcoin that was involved in illegal activities can be tracked and potentially blacklisted by certain entities. Virgin Bitcoin does not have this issue, as it has no transactional history and is distinguished from its 'used' counterparts.

  • No risks of association with illegal activities.
  • Increased privacy, as it lacks a transaction history.

The Premium on Virgin Bitcoin

Due to the valuable characteristics of Virgin Bitcoin, some entities will pay premiums for it. These are often institutions that prioritize regulatory compliance and risk management, and include both financial institutions and law enforcement agencies. The premium reflects the expense of mining new bitcoin, rewarded to miners for the provision of computational resources and their contribution to the network's security.

Availability of Virgin Bitcoin

Virgin Bitcoin is most commonly available directly from miners, and its availability is limited due to the nature of Bitcoin's mining process. The rewards from mining are 'halved' roughly every four years in an event known as the 'halving.' Consequently, the number of new bitcoins continually decrease over time, making Virgin Bitcoin more scarce and potentially increasing its future value.