The individual miner or pool that is the first to create the proof of work for a block is rewarded with transaction fees for those confirmed transactions and a subsidy of bitcoin. Thestreet explains the process of mining and whether it is worth it. Mining bitcoins offers the potential for profit but brings quite a few costs with it too.
Miners achieve this by solving a computational problem which allows them to chain together blocks of transactions hence bitcoin s famous blockchain. The role of miners is to secure the network and to process every bitcoin transaction. Bitcoin mining is done by specialized computers.
Far less glamorous but equally uncertain bitcoin mining is performed by high powered computers that solve complex computational math problems that is so complex that they cannot be solved by. You do it by letting your computer hardware calculate complex mathematical equations which can be done at any given time of the day. All the additional bitcoins have to be generated through a computational process called mining.
So how do new bitcoins come into existence. There will be a total of 21 million bitcoin in circulation by 2140. Bitcoin mining is the process by which new bitcoins are entered into circulation but it is also a critical component of the maintenance and development of the blockchain ledger.
