How bitcoin mining works

[Nathrixxx]

Here is a summary article for newbies on what btc mining is, we learn and we grow.

|What Is Bitcoin Mining?
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 TAKEAWAYS
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.

For further comprehensive study on mining, you can click the link below:
https://www.investopedia.com/tech/how-does-bitcoin-mining-work/

[bitmover]

KEY TAKEAWAYS
By mining, you can earn cryptocurrency without having to put down money for it.

This is false. This was true long time ago, but not anymore.

You are not able to just turn on your personal old notebook and start earning bitcoins for free.

Nowadays, mining is a business.  You need to buy specific hardware and spend a lot of electricity (which also costs money), as the specific hardware consumes a lot of electricity.

So, you  can earn cryptocurrency without buying it directly,  but you still need to put down money for it.

[HashingTower]

Lol wake up mate, mining is more than just earning today it's more a business for millions out there, BTC difficulty have raised alot that it will take a GPU rx570 a millennium to mine 1 BTC and in fact you can't use a GPU or CPU to mine BTC again, you need an ASIC miner to atleast earn some satoshi's not even 1 BTC lol

[TheNineClub]

I think this might be true maybe at the beginning of the previous cycle but soon after that the game changed and mining become a big scale operation that required some investment and more serious machinery if you want anything serious out of it. Can you still farm mine small scale? Sure, but to what end?

[Bitcoin_Arena]

This is a big problem Just copying outdated articles online and passing them here without any prior research. Such information can be so misleading to newbies

KEY TAKEAWAYS
By mining, you can earn cryptocurrency without having to put down money for it.

Have you looked into how much the mining equipment costs these days plusthe cost of the amount of power they consume during the process of mining?

You need either a GPU (graphics processing unit)

Obsolete when it comes to Bitcoin mining. You would be better off gambling or buying shitcoins.

[sheenshane]

KEY TAKEAWAYS
By mining, you can earn cryptocurrency without having to put down money for it.

Have you looked into how much the mining equipment costs these days plusthe cost of the amount of power they consume during the process of mining?

Plus another factor to consider is the electricity bill, not all countries have the same rate of electricity bills which mining won't work without a proper energy supply, that's why most small mining scale businesses doing it illegally by stealing the consumption of electricity.  At this point, if you don't have a good electricity source, you can't earn or you can't cover the electricity cost that might your money that spending mining machine will surely down.

If you didn't consider this, much better if you will invest in Bitcoin directly for less risk.  Invest and hold it for a long period of time.

[kxwhalexk]

I found a cartoon picture that can help understand


https://www.bitcoindesigned.com/infographics/what-is-bitcoin-mining/

[pooya87]

KEY TAKEAWAYS
By mining, you can earn cryptocurrency without having to put down money for it.

This is false. This was true long time ago, but not anymore.

Technically this has never been true. Even in early days of 2009 when you could simply run the bitcoin full client and mine blocks at difficulty 1 you were "spending money" as your CPU was using electricity to work even if it were small.
In fact this is how Proof of Work is designed, you have to spend money to perform work and the cost of this work is there to ensure the network security. Obviously security of bitcoin network in early days was nowhere near what it is today.

[khaled0111]

Here is a summary article for newbies on what btc mining is, we learn and we grow.

If you are really willing to learn about the bitcoin/blockchain technology and how it works then you should look for better resources than Investobidia, at least don't make it your only source of information. Their articles are full of misinformation and you should never recommend it to newbies.
You quoted a 5 line paragraphe and yet there are at leat 3 misinformation. The first one was already pointed out in the replies above. Then there is this: "completing "blocks" of verified transactions", what does that even mean!
Then there is the famous misconception that bitcoin miners are solving complex math problems while all they do is calculating the sha256 of block headers.

[juliepower]

Bitcoin mining is the process where new bitcoins are entered and it is performed by computers to solve maths problem.By mining, you can earn cryptocurrency without invest money in it. Bitcoin miners receive Bitcoin as a reward.