What is bitcoin mining || all information about BTC mining

Today we shall talk about, What about Bitcoin mining?

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Bitcoin mining can be a lucrative way to make money with Bitcoin, but not for individual investors. Because of the computing power required, the upfront and ongoing costs can far outpace mining rewards earned.

Bitcoin’s blockchain operates using a proof-of-work consensus mechanism, which means that miners perform the essential task of validating transactions in order to keep the network secure. New blocks of transactions are added to the ledger once every 10 minutes, and the miner who validates a new block is rewarded 6.25 Bitcoins, which is about $122,000 based on recent prices. Miners also earn transaction fees paid by users who would like to have their transactions validated faster, which can add about $4,000 to the reward for each block.

But to have a chance at earning a Bitcoin reward for validating a block of transactions, you’ll need a powerful computer known as an ASIC (or application-specific integrated circuit), and these can cost over $10,000. You'll also need to spend thousands on electricity to compete with other miners, and earnings aren't guaranteed.

There are mining pools that exist, where investors can pool computational resources and share rewards for mining Bitcoin. But the setup isn’t any simpler. Pools charge fees for their users, and the larger the pool is, the smaller the reward will be.

Neither the author nor editor held positions in the aforementioned investments at the time of publication