Bitcoin mining is the process by which transactions on the Bitcoin network are verified and added to the public ledger (the blockchain). This process involves using computers to solve complex mathematical problems, and the miner (who solves the problem first) is rewarded with Bitcoin.

Here is an overview of Bitcoin mining:

1. How does Bitcoin mining work?

When someone sends Bitcoin to another person, these transactions are gathered in what is called a "block."

This block needs to be "verified" before it is added to the blockchain.

Miners use specialized devices (such as ASIC) to solve a cryptographic algorithm known as SHA-256.

The first to find the solution receives a reward (currently 3.125 Bitcoin after the last "halving" that occurred in April 2024), in addition to the transaction fees present within the block.

2. What do you need to mine Bitcoin?

A specialized mining device (ASIC): such as Antminer S19.

Cheap electricity: because mining consumes massive amounts of energy.

A Bitcoin wallet: to receive the earnings.

Mining software: such as CGMiner or BFGMiner.

A mining pool: because the chances of profit in solo mining have become very rare.

3. Is mining still profitable?

It depends on several factors:

The cost of electricity.

The price of Bitcoin.

The efficiency of the mining device.

The mining difficulty (which increases over time).

4. What is "halving"?

Every 210,000 blocks (approximately every 4 years), the mining reward is halved.