The competition that secures Bitcoin: specialized computers race to solve a cryptographic puzzle, and the winner adds the next block and earns new bitcoin.
Miners bundle transactions, then search for a number that makes their block’s hash meet the network’s difficulty target — pure trial and error at industrial scale. Winning proves real-world energy was spent, which is what makes rewriting history economically absurd.
Mining is also the only mint: every bitcoin entered circulation as a block reward. Today it is a professional industry chasing stranded and surplus energy worldwide, but a $150 Bitaxe still lets anyone participate in the lottery.
IN A SENTENCE
“Mining margins compressed again after the halving; only the efficient machines survived.”
Key facts
Reward per block3.125 BTC + fees
Block interval~10 minutes
Industry inputElectricity, overwhelmingly
Entry pointBitaxe Gamma ($150)
Common questions
Is mining wasteful?
It converts energy into settlement security and monetary issuance — whether that is waste is a values question. Notably, miners increasingly monetize stranded, flared, and curtailed energy no one else buys.
Can mining be profitable at home?
Only with cheap power (< ~$0.08/kWh) and tolerance for noise. Otherwise buying sats outright usually acquires more per dollar.