So, you've probably heard of bitcoin mining and are wondering,

What's that?

how do I mine Bitcoin?

Look no further, Grab your cup of coffee, and brace your seat as I take you on a journey through the world of Bitcoin mining.

Bitcoin mining is a process where a network of computers collaborates to ensure the accuracy and reliability of transactions that form the blocks in the blockchain. These computers compete to produce different blocks for transactions and add them to the blockchain.

These expensive computers are controlled by experienced Bitcoin experts called miners, who are paid a transaction fee for each Bitcoin transaction. Now you know where the small charges you encounter in your Bitcoin transactions go.

Now that we know what mining is

How does it work?

Just as we rely on our local banks to record and store our money transactions,

Bitcoin relies solely on miners to validate transactions and add them to the block.

Every 10 minutes, one lucky miner receives a Bitcoin reward for successfully solving the algorithm and adding a block to the blockchain.

Easy peasy right??

Not so fast

It requires significant computing power from the miners to solve complex mathematical algorithms within 10 minutes.

How do you mine Bitcoin?

First of all, anyone can participate in updating the Bitcoin ledger by guessing a random number that solves the equation generated by the system. This is achieved using a computer, and the more computing power you have, the better.

Satoshi Nakamoto, the unknown person or group behind Bitcoin's creation, designed the system such that the more miners there are, the more difficult it becomes to solve the algorithm.

To solve the complex algorithm, graphics processing units GPUs were introduced, which are known to be 30 times faster in calculations than CPUs.

Later on, FPGA mining was invented, followed by the application-specific integrated circuit ASIC machine in 2023, which made mining less difficult for miners.

Hey! Come look at this

How long does it take to mine 1 bitcoin

Forbes reports that there are only 21 million bitcoins available, with 19.5 million bitcoins already mined. The time and difficulty it takes for miners to compute the mathematical analysis is referred to as mining difficulty.

Due to the intense competition, it can take years or months for a single miner to mine one bitcoin. To overcome this, miners join together in what is known as a mining pool, where they collaborate to solve the problem and share the rewards based on their mining capacity.

Companies invest more in mining by acquiring additional ASIC machines and hiring more miners for faster results. However, due to the overheating of these machines and their high energy consumption, companies often relocate to areas with ample energy resources, such as places near dams, to operate more efficiently.