I'm excited because I bought my first bitcoins today! (0.41 bitcoins at that!) I'm wondering how they are put in to circulation? From my understanding it seems that the algorithm generates x bitcoins every hour, where x is a diminishing value, until eventually zero coins are being created... so let's say an hour from now 5 bitcoins are created... Where are they created and how are they put into circulation? Or are they created evenly throughout everyone's wallets and just distributed evenly (in which case I might receive 0.000001 bitcoins in the next hour?) And what is a bitcoin miner?
Also, what happens if my computer is destroyed and my wallet file with my bitcoins is lost? Are those bitcoins gone forever? Wouldn't this cause the supply of bitcoins to go down overtime until eventually there are very few bitcoins left?
Thanks! God bless!
(I bolded my 3 questions so that they are easy to find and answer).