Cryptocurrency mining is how new monetary units are put into circulation. Cryptocurrencies are decentralized, not controlled by a single institution or government. Instead, cryptocurrencies rely on individuals called “miners” to make transactions.
To start mining, miners utilize their computing power to solve complex mathematical equations. The first miner to complete the equation is awarded newly created coins.
Cryptocurrency mining is verifying and adding transactions to the public ledger, known as the blockchain. Miners are rewarded with cryptocurrency for their efforts.
The most popular form of cryptocurrency mining is Bitcoin mining. To mine Bitcoin, miners must solve a complex mathematical problem. The first miner to solve the problem is rewarded with Bitcoin.
Cryptocurrency mining requires powerful computers and hardware that can solve complex mathematical problems. In addition, miners must have access to cheap electricity to be profitable.
Cryptocurrency miners typically set up in countries with cheap electricity, such as China and Iceland.