About Bitcoin Mining and how it works?
                     About Bitcoin Mining 
and how it works?
Bitcoin mining
• Bitcoin mining is a decentralized computational process which 
confirms transactions in a trustful manner and creates new 
bitcoins in each block. It is painstaking, costly and only 
sporadically rewarding.
bitdegree.com
Benefits
• The main benefit is that you can earn bitcoins without having 
to buy them. Miners receive bitcoins as reward for completing 
blocks of transactions.
investopedia.com
Rewards
• The bitcoins rewarded to miners serve the sole purpose of 
legitimizing, supporting and monitoring the Bitcoin network 
and transactions. It also motivates more miners to take part in 
the process.
coindesk.com
What is their work?
• Bitcoin miners have to basically verify transactions to keep the 
users honest and avoid the problem of ‘double spending’, in 
which the bitcoin owner could illegally make a copy of digital 
tokens.
coindataflow.com
Difficulty
• However it is not so easy to earn rewards for bitcoin mining. 
You’ll have to submit a proof of work, that is being the first miner 
to solve a numerical problem, which requires luck and also you 
have to verify upto 1 MB of transactions.
investopedia.com
Mining hardware
• In order to mine efficiently, miners will have to buy hardware 
which include powerful computer processors like Graphic 
Processing Units (GPU) or an application-specific integrated 
circuit (ASIC).
investopedia.com
Difficulty level
• The current difficulty level for a computer to solve a 
blockchain hash is 13 trillion, which means there is only a 1 in 
13 trillion probability of solving a hash, which is 44,500 times 
more likely the chance of winning a jackpot lottery.
cryptonews.com
Guesswork
• Bitcoin mining is mostly a complex guess work involving 
millions of miners to guess a unique hexadecimal number 
which is now highly competitive and difficult to achieve.
sebfor.com
21 million bitcoins
• There are only 21 million bitcoins in total which can be mined, 
which is somehow similar to gold mines that are limited and 
finite. Now about 18 million bitcoins have been mined and 
only 3 million is left to be mined.