How Bitcoin Mining Works: The Backbone of Crypto Security

Bitcoin mining is a crucial process that validates transactions and secures the Bitcoin network. Miners use powerful computers to solve complex mathematical puzzles — a mechanism called proof-of-work — that confirms transaction blocks before adding them to the blockchain.

Successfully mining a block rewards miners with newly minted bitcoins and transaction fees. This incentivises miners to continue supporting the network, maintaining its decentralisation and security.

While mining requires significant computational power and energy, advances in renewable energy and more efficient hardware are helping address environmental concerns. Understanding mining helps investors appreciate how Bitcoin remains resistant to fraud, censorship, and central control.