Bitcoin mining is what makes the decentralized clearing house for peer to peer transactions possible.

It serves two core processes:

Mining nodes validate all transactions based on bitcoin’s consensus rules.

Mining creates new bitcoin in each block like a central bank prints new fiat money.

The amount of bitcoin created per block is limited and diminishes as time goes on based on a fixed and agreed upon timeline.

This is how Bitcoin provides a way to remove the need for a 3rd party to own, manage and control a central ledger (Central Bank bank accounts).