How does bitcoin work? Who actually pays for the mining done?

How can bitcoin work? Who pays for the mining completed? There's just a very small difference between the fiat currencies (currencies backed by nothing) and Bitcoin, it's likewise a fiat money per se but electronic online fiat money, it's appreciated and has a buying power, since the people today feel so, just enjoy every nation's paper monies, individuals think in it and it's a buying power simply because the government says.

However, the gap in Bitcoin to this of paper monies is, Bitcoin is very decentralized and unlike newspaper monies there isn't any central bank that prints the money, the benefit Bitcoin have over paper money is that, paper money is an inflationary money, that's there's an inevitable rise in money supply over a time period. The authorities can make our lifelong economies useless overnight. Whereas, Bitcoin is a deflationary money, and the amount of bitcoins will finally flat out in 21 million (clarified under mining). 

Therefore, we've got the amount of little coins at continuous on both sides and raising services and goods on the flip side, so? How does this function? There's some thing named Bitcoin pocket, that when downloaded at a PC or a mobile begins downloading the whole past history of trades taken place with bitcoins globally, this is known as the transaction series, and each transaction is unique, it prevents double spending of a Bitcoin. 

Let us say someone X buys something out of Y with bitcoins, the price of the item is just 1 Bitcoin, when he buys a producthe transports his one Bitcoin out of his pocket to a different, what really happens is there's a transfer of a few intricate crypto code, to a single individual to the other, and that trade is confirmed in the trade chain, to confirm that X has not already spent the exact same Bitcoin elsewhere, after confirmed X one bit coin and receives a good or a service and Y profits one bitcoin in his pocket. 

How X has bitcoins in first location? He mines trades or it it from someone who mined it. What's mining? New bitcoins are made via mining. How can the paper money printed by central banks hit people hand? The central bank slips money and loans it to banks that consequently loans to people.

Therefore, we earn money in circulation since someone owes to a lender a specific quantity of money, let us say that nobody owes money to some lender, in this scenario there'll be no money in circulation in any way. As you can see, this traditional monetary system is inherently flawed, to compensate for debt, we must purchase more debts out of central banks, so as I mentioned earlier there's an inevitable rise in money supply. 

For each block mined there's an increase in Bitcoin flow right, therefore free legit bitcoin mining can be inflationary right?. Therefore, in a Bitcoin nobody owes no longer a debt, there's merely a move of Bitcoin from 1 individual to another. And it's deflationary as the amount of bitcoins will gradually become continuous, there will not be any growth in flow of bitcoins and also the need increases the buying power rises, unlike our paper money, which communicates its own buying power all the time.