Mining

mining · beginner

The process of running specialized hardware to produce valid Bitcoin blocks and earn the block reward.

Mining is the activity of searching for a block-header nonce that satisfies the proof-of-work target. Miners spend electricity to do this; in return, the protocol pays them the block subsidy plus the fees of transactions they include. Today mining is dominated by purpose-built ASICs operating at the megawatt scale.

Mining is also how new bitcoin enters circulation. The "block subsidy" started at 50 BTC/block in 2009 and halves every 210,000 blocks (~4 years), currently at 3.125 BTC. Subsidy is asymptotic: by ~2140 all 21 million coins will have been issued and miners will be paid entirely by transaction fees.

Two myths worth correcting. First, "mining secures Bitcoin by guessing the right number" — what miners actually do is *commit energy* to a chain history; the hash search is just the cryptographic accountant. Second, "miners control Bitcoin" — they propose blocks; nodes validate them. A miner who breaks consensus is ignored.

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