Bitcoin is a cryptocurrency that has gained popularity since its launch in 2009 due to its price swings and surging value. Bitcoin mining creates new Bitcoins by solving mathematical problems that help verify transactions in that currency. After successfully mining Bitcoin, the miner receives a predetermined amount of Bitcoin.

Bitcoin prices have skyrocketed over the recent years and have attracted more interest in Bitcoin mining. Bitcoin mining is not easy for most people because of its complexity and the prices. Blockchain technology powers Bitcoin mining which is adding the block to the chain.

How Does Bitcoin Mining Work?

To successfully add a block to the chain, miners compete to solve complex numerical problems, which use complex computers and a high amount of electricity. Miners need to arrive at the correct answer to the question or the closest answer to complete the mining process. This process of finding the valid number is called proof of work. For miners to get the correct numbers randomly as quickly as possible, they require massive computing power.

The computer hardware required for mining is known as ASIC and goes for about $10,000. These computers consume vast amounts of electricity, which could attract massive criticism from environmental groups, limiting miners’ profitability. When a miner successfully adds a block to a blockchain, he receives 6.25 Bitcoins. The reward is divided into half every four years.