Bitcoin mining is the process of verifying new transactions to the Bitcoin digital currency system, as well as the process by which new bitcoin enter into circulation.
Bitcoin miners use software to solve transaction-related algorithms that check bitcoin transactions.
Business Insider stated that nearly 90% of all bitcoin has been mined and that all bitcoin will enter circulation by 2140.
Mining operations are typically costly, which makes it less practical for the average consumer to perform.
Miners receive the latest batch of transaction data, which is then run through a cryptographic algorithm.
The hash is designed this way to help ensure that its corresponding block has not been tampered with.
The hash must also be below a specified target set by the hash algorithm.
The hashing process is designed to make solving transaction-related algorithms more challenging over time.
This means solving these algorithms also requires more and more computing resources.
The current processing power needed for bitcoin mining today means access to powerful computers and large amounts of electricity are a must
Originally, bitcoin mining was conducted on the CPUs of individual computers.