How does Bitcoin mining really work?

Mining Bitcoin is more than just the creation of Bitcoin tokens; it’s also the decentralized global system by which miners validate and secure all Bitcoin transactions — and earn Bitcoin themselves.

[{"selector":"#anim-e6386027-594c-4fe9-939e-71dec02d2a3b","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-7c7a2a17-8ed8-4160-9775-547e37a556db","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Learn more

How Bitcoin Mining Works

[{"selector":"#anim-efde6704-4ca3-44b1-a26c-d6979b24a2f2","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-24f48ef9-7a1d-423a-b5a1-2949826693a2","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Quick refresher: Unlike other traditional currencies Bitcoin isn’t overseen, issued or regulated by a central authority such as a bank. Learn more

Is Mining Bitcoin Legal?

[{"selector":"#anim-e59f5e25-46cf-4ae3-9117-8a6caba7825d","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-09b1ae9f-614b-4bda-8dd9-6f2421cab40b","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] The question of whether Bitcoin mining is legal is still fairly complex and can vary from region to region. Medium Brush Stroke Learn more

How Much Does a Miner Earn?

[{"selector":"#anim-e52dc3d5-b3ab-47e4-925b-ca8caaf1376b","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-134d522d-83b8-4a57-a16d-41e114a6b8fd","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Given the speed at which technology can change and markets can shift, what miners actually earn can be tough to predict. Learn more

What Do I Need to Mine Bitcoins?

[{"selector":"#anim-a422fc2b-910b-41b2-9b2a-4d08bd6ff878","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-10ed4cc8-dd63-4de8-a74c-59220f23c36a","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Bitcoin mining has become highly competitive because of the potential rewards — and the complexity of the calculations and technology involved. Medium Brush Stroke Learn more

SWIPE UP NOW TO READ MORE!

[{"selector":"#anim-0c0a1914-9c38-48c8-ac33-d01ca9e730b2","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-f68f4ebe-5a34-4056-851f-3da36f7542e9","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Learn more

Finding a financial advisor doesn’t have to be hard. SmartAsset’s free quiz matches you with fiduciary financial advisors in your area or who serve your area. If you are ready to be matched with financial advisors that can help you achieve your financial goals, take the quiz now.