Bitcoin is arguably one of the most popular digital cryptocurrency in the past couple of years. Its sudden rise in value has attracted the attention of investors and other demographics. But like any other cryptocurrency, earning Bitcoin is not as straightforward as other traditional currencies. As of this writing, mining is considered still to be the most effective means to earn Bitcoin units.

How does Bitcoin mining work?

Often considered as the backbone of the entire Bitcoin network, Bitcoin mining not only provides opportunities for individuals to earn digital currency but it is also a way of keeping the Bitcoin network and transactions within it secure and safe. A Bitcoin Miner’s task is to process each transaction involving Bitcoin and compile them into blocks called blockchain, and in exchange they are awarded with Bitcoin units.

How to mine Bitcoin?

In order to successfully mine Bitcoins, a dedicated software and hardware is needed. Mining using personal laptops and computer is not efficient as they don’t have the processing capacity needed to mine Bitcoins. Brokerworld24 estimated that you will earn less than a penny a year if a personal computer is used for mining.

Though it is possible to earn Bitcoins by solo mining and not joining a mining pool, the chances of finding a block on your own is highly unlikely. It’s best practice to join a mining pool, contribute to the hashrate of the entire pool and get awarded depending on how much contribution you have made.

How does Bitcoin mining help the Bitcoin industry?

Not only does Bitcoin mining help the miners earn Bitcoin, the process itself provides a number of benefits towards the network. Since Bitcoin is not regulated by any governing body, it is of utmost importance that transactions are securely and strictly overseen and regulated. Miners help validate transactions to make sure that no Bitcoin is used for different transactions simultaneously.