Mining is done by running extremely powerful computers called asics that race against other miners in an attempt to guess a specific number. Bitcoin mining is the process of updating the ledger of bitcoin transactions known as the blockchain. 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. First when computers solve these complex math problems on the bitcoin network they produce new bitcoin not unlike when a mining operation extracts gold. The result of bitcoin mining is twofold.
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.
