Bitcoin mining is something I'd love to understand.
Discussion
I'd love to help you. Have you read the Bitcoin whitepaper?
From what I understand bitcoin mining is like a global race where powerful computers compete to solve a really hard puzzle. The first one to solve it gets rewarded with new Bitcoins and the right to add a block of transactions to the blockchain, which is Bitcoin's public record book. This keeps the network secure, verifies transactions, and slowly releases new coin into circulation. It’s called “mining” because, like digging for gold, it takes a lot of work and energy, and only the winner gets the reward?
Yes.
Miners can also form pools, and combine their compute power remotely, sharing the block rewards when a block is won.
This helps balance out the volatility of competition and gives a more predictable "cashflow" if you are mining on a scale that requires a large electric bill.
Or you can solo mine, my favorite. 🥰
Fascinating