Mining Bitcoin is foreign to most people, but along with Bitcoin it’s an industry that’s been going for over ten years. And it’s an industry that’s growing at an unbelievable rate, too.
For most people, mining Bitcoin boils down to whether it’s profitable. That’s the main reason most people get into it, but what is Bitcoin Mining? It is a technical subject, but allow me to explain in the simplest of ways.
ELI5 Bitcoin Mining
Mining Bitcoin is basically computers with the Bitcoin protocol downloaded, all processing the mathematical puzzle the Bitcoin algorithm asks of them.
With the processing power, mining increases the security of Bitcoin’s network and fights fraud by calculating every transaction that is proposed by any user.
A person who contributes their processing power (a miner) to the Bitcoin network is rewarded with newly minted bitcoins, which also distributes the coins in a fair and decentralized way.
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