What Is Bitcoin Cash?
Bitcoin.com Block Explorer: How to Use
How to Buy Bitcoin Cash (BCH) with a Credit Card
How to Get Started with Bitcoin
Calculating Bitcoin Core Mining Profitability
How to Buy Bitcoin Online
What is a Bitcoin Mining Pool?
Bitcoin Whitepaper: A Beginner’s Guide
Bitcoin Cash is Bitcoin
How to Use the Bitcoin.com Wallet
Who Developed Bitcoin?
How to Buy Bitcoin Cloud Mining Contracts
Differences Between Bitcoin Cash and Bitcoin
How is the Bitcoin Blockchain Different from Banking Ledgers?
How to Create a Shared Bitcoin Wallet
How to Import and Export Bitcoin Private Keys
What is Bitcoin?
A brief visual lesson on the shared history of Bitcoin Cash and Bitcoin Core
Merchants: Learn how to accept Bitcoin Cash in minutes
The benefits of Bitcoin
Why Bitcoin Cash is Bitcoin
Here are several reasons why Bitcoin Cash (BCH) has the best traits of money
How to stay safe and keep your Bitcoin secure in a public world
It’s true: Bitcoin saves lives by bringing economic freedom to the world
Bitcoin adoption continues as more around the world buy and use it as cash
Bitcoin Cash (BCH) outperforms all other payment methods
How to Access Your Bitcoin Cash (BCH)
How Bitcoin Transactions Work
Roger Ver on the Economic Code of Bitcoin
Can I Shop, Travel, or Gamble with Bitcoin?
How to Setup a Bitcoin ASIC Miner
What is Bitcoin Mining?
What is the Blockchain?
How to Avoid Bitcoin Fraud
What is Bitcoin Double Spending?
Ver on The Rubin Report: How Bitcoin Works
Bitcoin Cash Compared to Bitcoin Core: Infographic
How to Setup Bitcoin Cold Storage
Bitcoin Glossary
How to Choose the Best Bitcoin Wallet
How to Choose the Best Bitcoin Exchange
Bitcoin Cloud Mining, Is It Worth It and Is It Safe?

What is Bitcoin Mining?

Read an important announcement about Bitcoin from Bitcoin.com.

Bitcoin mining is the processing of transactions on a Bitcoin network and securing them into the blockchain.  Each set of transactions that are processed is a block. The block is secured by the miners. Miners do this by creating a hash that is created from the transactions in the block. This cryptographic hash is then added to the block. The next block of transactions will look to the previous block’s hash to verify it is legitimate. Then your miner will attempt to create a new block that contains current transactions and new hash before anyone else’s miner can do so.

(Update: Bitcoin Core is less usable as money due to much higher fees and delayed transaction times. The Core team has also expressed an interest in keeping these fees high since they view BTC as a “store-of-value” and not something to be transacted on a daily basis. In contrast, Bitcoin Cash’s transaction fees cost pennies and payments can be validated even with zero confirmations. These facts make BCH the ideal cryptocurrency for sending and receiving money anywhere in the world.)

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Since the difficulty of Bitcoin mining is very high now people will pool their miners together to have a better chance of creating a block and having it confirmed before other miners for a share of the current mining reward which is 12.5 BTCs, plus any transaction fees.  We will cover pool mining later in the guide.

The series of blocks is called the blockchain. The blockchain is like your checkbook register or a general ledger of transactions.  The way that Bitcoin mining secures the blockchain makes that ledger tamper-proof and immutable.

Each block once made into a block will be verified by nodes on a Bitcoin network.

This process is using Proof of Work.  Proof of Work covers BTC transactions in a block and is what your Bitcoin ASIC Miner does.

Proof of Work explained:

“In order for a block to be accepted by network participants, miners must complete a proof of work which covers all of the data in the block. The difficulty of this work is adjusted so as to limit the rate at which new blocks can be generated by the network to one every 10 minutes. Due to the very low probability of successful generation, this makes it unpredictable which worker computer in the network will be able to generate the next block.

For a block to be valid it must hash to a value less than the current target; this means that each block indicates that work has been done generating it. Each block contains the hash of the preceding block, thus each block has a chain of blocks that together contain a large amount of work. Changing a block (which can only be done by making a new block containing the same predecessor) requires regenerating all successors and redoing the work they contain. This protects the block chain from tampering.”

The process of Bitcoin mining while difficult on the technical side to to fully understand can be easily mined by anyone.  Miners secure the network by using Proof of Work and creating a hash for each block that is mined, so the blockchain keeps an immutable record of all transactions taking place on the network.

Bitcoin mining is competitive, you want to solve or “find” a block before anyone else’s miner does. Then you will get the block reward and transaction fees from the block.  During the last 3 years we have seen an incredible amount of hashrate coming online which made it harder and harder to have enough hashrate personally to solve a block thus getting the payout. To compensate for this pool mining was developed. Bitcoin.com has launched it’s own mining pool with competitive pricing, which you can register for and begin mining today.

Next we will go over how to mine Bitcoin, what hardware you need and how to setup current Bitcoin ASIC Miners.

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