Question: How and where Bitcoins are created?
There is no central bank or owner of Bitcoin community, and Bitcoins are created/generated by “Miners” all over the world.
This decentralized process called “mining” is a rewarding system and anyone can be a part of it as long as he/she is specialized in such task.
Rewarding for what activity?
The reward will be given from the Bitcoin network for “Bitcoin Miners” who are processing transactions and securing the network using specialized hardware and are collecting new bitcoins in exchange.
As you may already know Bitcoin market is decentralized and these workers are the ones who keep the market running.
More Bitcoin Miners mean More Bitcoin?
No, that is not actually true, because Bitcoins are created at a decreasing and predictable rate.
Also Bitcoin’s protocol will halt the whole mining activity one there are 21 million bitcoins in existence.