What is Bitcoin Mining?
Bitcoin mining is the process of validating transactions and adding them to the Bitcoin blockchain. Miners use specialized hardware (ASICs) to solve complex mathematical puzzles. The first miner to solve the puzzle gets to add the next block and receives the block reward (currently 3.125 BTC) plus transaction fees.
This process secures the Bitcoin network and creates new BTC. Mining requires significant electricity and computational power, making it essential to calculate profitability before investing.