Bitcoin mining: What is it and how does it work

In simple terms, Bitcoin mining is the process that creates new Bitcoins, and then releases them into circulation. The meteoric rise in the price of Bitcoin has piqued interest in Bitcoin mining as well.

While it might not sound like it, the mechanism of creating new Bitcoins involves unimaginable resources. So let’s get a low-down on the process.

First things first, what is Bitcoin anyway?

Bitcoin is not just a popular cryptocurrency, but it is also the first one, and the most valuable of the lot.???

Technically speaking, Bitcoin, like all cryptos, runs on a decentralized computer network. This means that there is no single entity controlling the network or the creation of new units.

So where does Bitcoin mining come in?

The Bitcoin blockchain is made up of interlinked blocks, with each block containing a collection of Bitcoin transactions.?

Simply put, Bitcoin mining is the process that adds a new block to this chain. In order to successfully add a block, Bitcoin miners compete among themselves to solve extremely complex math problems. In other words, to successfully mine a Bitcoin, the digital miner must be the first to come up with the answer.

Does a miner get something for doing all that math?

Oh yes. Bitcoin rewards miners for adding a block to the blockchain. Interestingly, this reward is halved after 210,000 blocks have been mined.

At today’s prices, a miner would earn $210,262.5 or AED7,72,028.125 for adding a new Bitcoin block.

So can I mine with my new MacBook Pro?

Um, no. Back in the early days, virtually all of Bitcoin mining was done using desktop computers. Then someone discovered graphics cards, or graphics processing units (GPUs), were better at solving the Bitcoin math than the regular computer processors.?

This skyrocketed their demand, which led to a shortfall in supply. In fact, the situation got so much out of hand that GPU manufacturers were forced to modify their cards to make them unsuitable for mining.

Alright, so what do I need to mine Bitcoin today??

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