Bitcoin mining is the process of validating and recording transactions on the Bitcoin blockchain. Miners use powerful computers to solve complex mathematical problems, known as hashing algorithms, in order to add new blocks of transactions to the blockchain. As a reward for their efforts, miners receive newly minted bitcoins, as well as transaction fees from the transactions included in the block they mined.
Mining serves two primary purposes in the Bitcoin network: securing the network by preventing double-spending and creating new bitcoins. The difficulty of mining adjusts approximately every two weeks to ensure that blocks are mined at a consistent rate, regardless of changes in the total computing power of the network.
However, Bitcoin mining requires significant computational resources and energy consumption. As a result, it has become increasingly competitive and resource-intensive over time, with large mining operations often located in regions with access to cheap electricity.
