Blockchain 101: Episode 24 – How to mine Bitcoin

Bitcoin is produced through mining. Every 10 minutes, miners compete to solve a complex math problem. Whoever finds the answer first, mines the block, and receives Bitcoins as a block reward.

In early days, mining can be done using CPUs. However, with the increasing number of miners, CPUs are no longer powerful enough to mine Bitcoins, and people turned to mining rigs. To start mining, you need to prepare mining rigs, Bitcoin address, mining software, etc.

Currently, the computing power required is too high, solo miners find it hard to get a block reward. Hence, many miners join a mining pool to do it together, miners are only responsible for providing the computing power, and the mining pool processes the transactions. When the pool receives Bitcoins, it will distribute to miners based on their contributions ensuring a stable rate of return.