#SaylorBTCPurchase #CEXvsDEX101
🔧 What is Bitcoin Mining? A Simple Guide for Everyone
Bitcoin mining is the process that powers the Bitcoin network. It creates new bitcoins and confirms transactions on the blockchain using powerful computers.
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🪙 What is Bitcoin Mining?
Miners solve complex math problems using specialized hardware. When they succeed, they add a block to the blockchain and earn a block reward in BTC.
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🔐 Why is Mining Important?
Mining:
Secures the network
Verifies transactions
Keeps Bitcoin decentralized
It’s essential to how Bitcoin works.
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⚙️ How Does It Work?
Miners compete to solve cryptographic puzzles (SHA-256). The winner adds a new block and earns rewards and fees. This is called Proof of Work.
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📉 What is Halving?
Every 4 years, the BTC block reward is halved. This reduces supply, increasing scarcity—similar to digital gold.
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⚡ Is Mining Profitable?
It depends on:
Electricity cost
Mining hardware
BTC price
Network difficulty
In low-cost regions, it’s profitable. Elsewhere, it’s harder.
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🌱 Mining & Energy
Bitcoin mining uses a lot of energy, but many miners are switching to green energy like hydro and solar to reduce environmental impact.
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🔚 Final Thoughts
Mining is more than earning BTC — it secures the entire network. As Bitcoin grows, mining will remain key to its success and decentralization.
