This video explains what cryptocurrency mining is, and how it works.
Bitcoin mining is the process by
which new bitcoins are entered into circulation, but it is also a critical component of the maintenance and
development of the blockchain ledger. It is performed using very sophisticated computers that solve extremely
complex computational math problems.
Key Points
- By mining, you can earn cryptocurrency without having to put down money for it.
- Bitcoin miners receive Bitcoin as a reward for completing "blocks" of verified transactions which are added
to the blockchain.
- Mining rewards are paid to the miner who discovers a solution to a complex hashing puzzle first, and the
probability that a participant will be the one to discover the solution is related to the portion of the total
mining power on the network.
- You need either a GPU (graphics processing unit) or an application-specific integrated circuit (ASIC) in
order to set up a mining rig.
