Crypto Mining
By Menno — 13 years in crypto, 3 bear markets survived, zero paid promotions
Last updated: March 2026
Crypto mining is the process of using specialized hardware to validate blockchain transactions and earn cryptocurrency rewards. Bitcoin miners secure the network through proof-of-work computation.
Cryptocurrency mining is the process of using computational power to validate transactions, add new blocks to a blockchain, and earn block rewards.
Mining process: 1. Transactions are broadcast to the network 2. Miners collect transactions into candidate blocks 3. Miners compete to find a valid hash (proof of work) 4. The winning miner broadcasts the block and receives the reward 5. Other nodes verify and accept the block
Mining hardware evolution: - CPUs (2009-2010): ordinary computers could mine Bitcoin - GPUs (2010-2013): graphics cards offered better performance - ASICs (2013-present): specialized chips designed solely for mining
Mining economics: miners must cover electricity costs, hardware depreciation, and cooling. The "mining cost" of Bitcoin creates a rough price floor — if BTC drops below mining cost, unprofitable miners shut down, reducing supply and stabilizing price.
Since the 2024 halving, Bitcoin miners receive 3.125 BTC per block (approximately every 10 minutes). This will halve again around 2028 to 1.5625 BTC per block.
Related Terms
Proof of Work (PoW)
Proof of work is a consensus mechanism where miners compete to solve complex mathematical puzzles to validate transactions and create new blocks. Bitcoin uses proof of work, which is energy-intensive but highly secure.
Bitcoin (BTC)
Bitcoin is the first and largest cryptocurrency by market cap, created in 2009 by the pseudonymous Satoshi Nakamoto. It functions as a decentralized digital currency and store of value secured by proof-of-work mining.
Bitcoin Halving
A Bitcoin halving is a programmed event occurring roughly every 4 years that cuts the mining reward in half, reducing new BTC supply. Halvings have historically preceded major bull markets.
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