ELI5 Bitcoin Mining: Mining Bitcoin is one of the fastest growing industries and the processing power that comes from mining hardware devices verifies every transaction and secures the Bitcoin Network.
There is literally billions of dollars being invested in the Bitcoin mining industry, and its for good reason: It’s a way of turning energy into value, and getting involved at the base layer of Bitcoin and the new decentralized financial industry.
Bitcoin’s mining and the Proof of Work concept is one of the key functions that makes Bitcoin what it is, but mining Bitcoin needs some knowledge of how it all works.
If you’re interested in getting into mining Bitcoin, or would simply like an easy to understand explanation of how Bitcoin mining works, read on…
ELI5 Bitcoin Mining – Explain Bitcoin Mining Like I’m Five
Bitcoin Mining requires powerful computational power. It is possible to mine Bitcoin with some powerful GPUs, but to be most competitive in the mining game, a specialized ASICs mining rig is recommended.
Whether it’s a GPU mining rig, or an ASICs mining device the mining hardware will be connected to the Bitcoin Network.
Essentially, the work of a mining device is to verify all transactions and secure the Bitcoin Network.
Here’s a simple explanation of how Bitcoin Mining works:
All Bitcoin transactions are broadcast to the Bitcoin network. Every one is eventually picked up by the Bitcoin miners, who work together to add the transactions to the latest block.
The block is the latest block of data (transactions), and after roughly 10 minutes the miners will have filled the block with transactions. Read More at Bitcoin Maximalist