Bitcoin mining is the process by which new bitcoins are created and transactions are verified and added to the Bitcoin blockchain (a public digital ledger). Hereâs how it works in simple terms: 1. Transactions happen: When people send bitcoin to each other, those transactions are grouped together into a âblock.â 2. Miners compete to solve a puzzle: Powerful computers (called miners) race to solve a complex mathematical problem related to that block. This process requires a lot of computing power and electricity. 3. The winner adds the block to the blockchain: The first miner to solve the puzzle gets to add the new block of transactions to the blockchain â” making it part of Bitcoinâs permanent record. 4. The reward: The winning miner receives newly created bitcoins (called th
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