What is bitcoin mining? Start Investing in Crypto
Computers attempting to mine bitcoin run a program that is essentially a a trial-and-error algorithm, performing millions of calculations to solve the computational puzzle.
Bitcoin mining is how new bitcoins are created, and it involves solving a complicated math problem. Or, at least, your computer solving a complicated math problem.
If you’re successful, you get what’s called a “block reward,” or a fixed number of new bitcoins (BTC). One block equals 6.25 BTC, but the rewards are halved after every 210,000 blocks, or about every 4 years. This was part of Bitcoin’s design to ensure that a maximum of only 21 million bitcoins are created (currently, there are nearly 19 million in circulation).
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