Mining is the process that adds new blocksBlockA batch of transactions added to a blockchain in one go, together with a reference to the block before it. to the blockchain of Bitcoin and some other cryptocurrencies. Miners compete to solve a mathematical puzzle with powerful computers. The first to solve it adds the next block and is rewarded for it. The name echoes gold mining: work and energy go into bringing new units into circulation.
How does mining work?
The puzzle is to find a number that gives the block a HashHashA short fingerprint calculated from data, which changes completely if the data is altered by even a single character. below a certain target. The only way to do it is to guess, over and over, countless times a second. This is the heart of proof of workProof of workA consensus method where the right to add the next block to a blockchain goes to whoever first solves a hard computing puzzle..
The network adjusts the difficultyMining difficultyA measure of how hard it is to find a new block; Bitcoin adjusts it every 2,016 blocks so that blocks are found about every ten minutes on average. every 2,016 blocks, roughly every two weeks. If blocks have been found too quickly, the puzzle gets harder, and if too slowly, it gets easier. That keeps the average time at about ten minutes, however many miners take part.
What do miners earn?
- New bitcoin. Since 20 April 2024, the reward is 3.125 bitcoin per block. It is cut in half roughly every four years in the HalvingHalvingThe event roughly every four years when the number of new bitcoin that miners receive for each block is cut in half..
- Network fees from every transaction in the block.
What to keep in mind
Bitcoin mining is now done with specialised machines (ASICs) built for nothing else. An ordinary home computer stands no chance. Most miners join mining pools and share the rewards. Mining uses a lot of electricity, so it tends to happen where power is cheap.
Everything in Myntkaup Learn is written and regularly reviewed by the Myntkaup editorial team. It is for education and is not investment advice. Editorial policy. Updated 18 October 2026.