Understanding Bitcoin Mining: From Block Rewards to Network Security
Bitcoin mining is the process that secures the Bitcoin network and creates new Satoshis. This essential process was designed by Satoshi Nakamoto to ensure network security and controlled currency issuance.
Mining Basics
- Proof-of-Work algorithm
- Block rewards (6.25 BTC)
- Transaction verification
- Network security
- Hash rate competition
Mining Economics
- Hardware costs
- Energy consumption
- Mining pools
- Difficulty adjustments
- Profitability calculations