What is bitcoin mining?

Here's an explanation for . Bitcoin mining is the process of creating new bitcoins by solving extremely complicated math problems that verify transactions in the currency. When a bitcoin is successfully mined, the miner receives a predetermined amount of bitcoin.

What does 'bitcoin' mean?

Throughout, we use "Bitcoin" with a capital "B" when referring to the network or the cryptocurrency as a concept, and "bitcoin" with a small "b" when we're referring to a quantity of individual tokens. Blockchain "mining" is a metaphor for the computational work that nodes in the network undertake in hopes of earning new tokens.

What software do you need for bitcoin mining?

There are several versions of Bitcoin mining software, many of which miners can download and use for free. Finally, miners need Bitcoin mining hardware, typically specialized graphics processing units, or GPUs, or application-specific integrated circuits, or ASICs, designed for mining.

How does bitcoin work?

Bitcoin runs on a decentralized computer network or distributed ledger that tracks transactions in the cryptocurrency. When computers on the network verify and process transactions, new bitcoins are created, or mined. These networked computers, or miners, process the transaction in exchange for a payment in Bitcoin.