This short video explains what Bitcoin mining is, how miners validate transactions, and why the process matters for network security and supply issuance. Below you'll find the full transcript and FAQs. For a deeper look at mining hardware, profitability, and how to get started, read the full written guide on what Bitcoin mining is.
Read the full guide: What is Bitcoin Mining?
Full Transcript
What is Bitcoin mining?
Bitcoin mining is the process of validating Bitcoin transactions and creating new Bitcoin by solving complex math problems with a powerful computer.
This starts with a miner finding a block. A block represents a batch of Bitcoin transactions. Finding a block involves checking a vast number of possibilities until a number is found that meets the requirements defined by the Bitcoin protocol. When this happens, the miner adds the block to the chain and is rewarded with a block subsidy plus transaction fees.
The block subsidy is an amount of Bitcoin that decreases every four years. This is designed to enforce Bitcoin's hard cap of 21 million coins.
Think of Bitcoin mining as a network of computers competing in a mathematical lottery to add a block. Miners play a key role in supply issuance, transaction verification, and network security.
To learn more about Bitcoin mining, visit simplemining.io.
FAQs
What is Bitcoin mining in simple terms?
Bitcoin mining is the process of using specialized computers to validate transactions and add them to the blockchain. Miners compete to solve a mathematical puzzle, and the first one to find a valid solution earns newly created Bitcoin. This process secures the network and controls how new coins enter circulation.
What is a block in Bitcoin?
A block is a batch of Bitcoin transactions bundled together. When a miner finds a valid solution, that block gets added to the chain of all previous blocks. Each block references the one before it, which is what creates the "blockchain."
What is the block subsidy?
The block subsidy is the amount of newly created Bitcoin awarded to a miner for adding a valid block. As of the most recent halving in April 2024, the block subsidy is 3.125 BTC per block. This is the primary way new Bitcoin enters circulation.
Why does the block reward decrease?
The reward is cut in half approximately every four years through an event called the halving. This schedule is built into Bitcoin's code to enforce a hard cap of 21 million coins. The decreasing reward creates a predictable, slowing rate of new supply until the final Bitcoin is mined around the year 2140.
Do miners earn anything besides the block subsidy?
Yes. Miners also collect transaction fees from every transaction included in their block. As the block subsidy shrinks over time, transaction fees become a larger share of total miner revenue. Eventually, fees will be the only source of income for miners.
Is Bitcoin mining like a lottery?
It's a useful analogy. Thousands of miners compete to find a valid number that meets the network's requirements. The more computing power (hashrate) a miner contributes, the more "lottery tickets" they hold. Unlike a traditional lottery, this competition runs continuously and a winner is found roughly every 10 minutes.
By Josh Heine, Content Strategist at Simple Mining
Published: September 10, 2024
Modified: March 10, 2026