Bitcoin mining is the process of validating and recording new transactions on the Bitcoin blockchain. Miners use powerful computers to solve complex cryptographic puzzles, and the first to solve it gets to add the block of transactions to the blockchain and receive Bitcoin as a reward. It is a key component that secures the decentralized network.
Bitcoin mining works by having miners solve a mathematical puzzle based on the SHA-256 hashing algorithm. The first to solve the puzzle gets to add the block and receive a reward.
You need ASIC (Application-Specific Integrated Circuit) hardware designed for mining, along with a reliable internet connection and electricity source.
Profitability depends on hardware efficiency, electricity cost, and Bitcoin's market price. Joining a mining pool is often more viable for consistent returns.
Mining pools are groups of miners who combine computing power to increase chances of solving the block and share the rewards proportionally.
Bitcoin mining is legal in many countries, but you should always check your local regulations before setting up a mining operation.