How is bitcoin mined?

Bitcoin mining is the process of verifying transactions and adding them to the blockchain using powerful computers.

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It relies on a consensus mechanism called Proof of Work, which requires solving complex mathematical problems.

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Miners use specialized hardware called ASICs (Application-Specific Integrated Circuits) for efficient mining.

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Miners compete to solve a cryptographic hash function. The first to succeed adds the next block to the blockchain.

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The winning miner earns a block reward in Bitcoin plus transaction fees from the block.

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Bitcoin rewards halve approximately every 4 years, reducing the number of new bitcoins entering circulation.

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Mining consumes a large amount of electricity—this is a major factor in mining costs and environmental concerns.

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Many miners join mining pools to combine computing power and increase chances of earning rewards.

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Bitcoin mining can be profitable but requires significant investment in hardware, electricity, and technical know-how.

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Bitcoin’s Evolution Beyond Digital Gold

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