You may have heard of Bitcoin, but have you ever heard of Bitcoin mining? Bitcoin is a difficult concept for the average person to grasp, making it the perfect subject for Switch Video to tackle with an explainer video. This video is the latest in a series for our partnership with Bloomberg TV showcasing complex business topics as told through animated video.
Bitcoin is a cryptocurrency made to function as a commodity similar to gold, hence the term mining. Since Bitcoins aren’t actually buried in the earth, mining refers to the process by which new Bitcoins are virtually made. As the video explains, only 21 million Bitcoins will ever exist! But as of now there are more than 12 million in circulation. As people mine Bitcoins, more come into existence. The process to mine them becomes increasingly difficult as more Bitcoins are discovered. According to CNBC, given the current rate, the last Bitcoin will be mined in the year 2140. Check out the Bitcoin mining process in the video above.
Without the engaging visual metaphors utilized by Switch throughout the video, it would be hard for most readers to grasp the subtleties of how the process works. Keep an eye out as we create more explainer videos for Bloomberg TV.