Crypto and derivatives · updated October 21, 2026
What is crypto mining and how does it work
Mining is the process in which specialised computers check transactions and add new blocks to the blockchain, in exchange for a reward in newly created coins. Bitcoin uses it, and it is also called "proof of work": you prove you did the work, meaning you burned electricity and computing power.
How it works
Miners try billions of combinations per second to find a number that makes the block's fingerprint (hash) meet a condition. The first one to find it adds the block and collects the reward plus the transaction fees. The difficulty adjusts every 2,016 blocks (about two weeks) so that a block still appears every 10 minutes on average, however many miners there are.
Worked example
On Bitcoin, the reward is 3.125 BTC per block, and about 144 blocks appear each day.
Every halving cuts the reward in half, and with it the number of new bitcoins per day.
Worth knowing
Today, Bitcoin mining is done almost only with dedicated machines (ASICs) and cheap electricity. A home computer is no longer profitable.
When crypto mining can fool you
Heavy energy use: the Bitcoin network uses about as much electricity as a mid-sized country. "Cloud mining" offers: many of these are scams; check who the company is and where the machines actually are.
Related terms
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Questions about crypto mining
Is it still worth mining Bitcoin at home?
Almost never. You compete with huge farms of specialised machines running on very cheap power. At home, the electricity usually costs more than you earn.
What happens when all the bitcoins are mined?
Around the year 2140 no new bitcoins will be created. Miners will then be paid only from transaction fees.
These explanations are for information only. They are not a recommendation to buy or sell.
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