{"id":14555,"date":"2016-03-25T10:00:16","date_gmt":"2016-03-25T10:00:16","guid":{"rendered":"https:\/\/www.techopedia.com\/definition\/bitcoin-mining\/"},"modified":"2025-02-13T15:12:42","modified_gmt":"2025-02-13T15:12:42","slug":"bitcoin-mining","status":"publish","type":"definition","link":"https:\/\/www.techopedia.com\/definition\/bitcoin-mining","title":{"rendered":"Bitcoin Mining"},"content":{"rendered":"

What Is Bitcoin Mining?<\/span><\/h2>\n
Bitcoin<\/a> (BTC) mining refers to the process of creating new BTC tokens by verifying transactions and compiling them into new blocks on the Bitcoin blockchain<\/a>.<\/p>\n
The process involves Bitcoin’s entire network of miners<\/a> competing with each other to solve a cryptographic<\/a> puzzle. The first miner to solve the puzzle gets the opportunity to compile pending transactions into the latest Bitcoin block. The miner is rewarded with newly minted BTC tokens for successfully creating the new block.<\/p>\n
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Key Takeaways<\/span><\/h2>\n
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Miners are rewarded with newly minted BTC tokens for successfully creating the new block.<\/li>\n
Bitcoin mining ensures that all transactions conducted on the network are legitimate.<\/li>\n
ASIC rigs are the most efficient devices available in the market today as they are specifically designed for Bitcoin mining.<\/li>\n
Transaction fees paid by users go to the miners.<\/li>\n
Bitcoin mining consumes more energy annually than several nations such as Egypt, Malaysia and Poland, said Cambridge Bitcoin Electricity Consumption Index.<\/li>\n<\/ul>\n<\/div><\/div>\n
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\n What Is Bitcoin Mining?<\/a>\n <\/div>\n <\/li>\n
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\n Key Takeaways<\/a>\n <\/div>\n <\/li>\n
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\n Purpose of Bitcoin Mining<\/a>\n <\/div>\n <\/li>\n
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\n History of Bitcoin Mining<\/a>\n <\/div>\n <\/li>\n
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\n How Is Bitcoin Mined?<\/a>\n <\/div>\n <\/li>\n
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\n Why Mine Bitcoin?<\/a>\n <\/div>\n <\/li>\n
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\n Bitcoin Mining Pros & Cons<\/a>\n <\/div>\n <\/li>\n
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\n Popular Bitcoin Mining Scams<\/a>\n <\/div>\n <\/li>\n
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\n Taxes on Bitcoin Mining<\/a>\n <\/div>\n <\/li>\n
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\n Environmental & Economic Considerations<\/a>\n <\/div>\n <\/li>\n
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\n Future of Bitcoin Mining<\/a>\n <\/div>\n <\/li>\n
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\n The Bottom Line<\/a>\n <\/div>\n <\/li>\n
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\n FAQs<\/a>\n <\/div>\n <\/li>\n
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\n References<\/a>\n <\/div>\n <\/li>\n <\/ol>\n
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