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If I'm correct, you can get Monero coins by:

  1. Mining it
  2. Buying it from a miner (who mined it at the first place)

Mining is a computation which "legitimizes" transactions on the blockchain. But transaction assumes that one entity/address sends Monero coins to another entity/address. If so, then I have questions:

  1. How was first Monero coin created (looks like a chicken-egg problem)?
  2. Considering that Monero transactions are private, how can we be sure that someone didn't create a lot of coins at the beginning of blockchain?
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How was first Monero coin created

Every Monero in existence descends from mined Monero, i.e. the coinbase outputs on created blocks.

Considering that Monero transactions are private, how can we be sure that someone didn't create a lot of coins at the beginning of blockchain?

We can be "sure" because: a) coinbase outputs are not private and b) mathematically nodes ensure all newly created outputs (tx outputs) are funded by the tx inputs (which are funded by the tx before, and so on).

Further details: About supply auditability

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  • Can we provide a simplified minimal example, like.. "1. Let's say we start Monero network 2. we created a single mining node 3. next we create a 2 wallets (A and B) 4. wallet A sends coins to wallet B." - so how can wallet A have funds if we need first create a block with transaction? Is it correct?
    – xliiv
    Commented Feb 11, 2023 at 12:09
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    Wallet A would have had to have mined a block. Also, a block doesn't have to contain txs.
    – jtgrassie
    Commented Feb 11, 2023 at 16:11

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