Bitcoin Mining Is Not Wasteful – Bitcoin Magazine


The mainstream media mistakenly portray bitcoin mining as wasteful. Nothing could be further from the truth. Bitcoin mining provides an economic bid for otherwise unusable, excess energy. Bitcoin will propel humanity to abundance.

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“Bitcoin Mining isn’t wasteful” — an AI-generated image by DALL-E, OpenAI**

To discuss bitcoin mining, one must first understand how it works: Proof-of-Work and the difficulty adjustment.

How Bitcoin Mining Works

Bitcoin is a new type of money that uses a Proof-of-Work consensus mechanism to secure the network (SHA-256). The “work” is the computation that must be performed to solve the puzzle. Miners use computers specifically designed for bitcoin mining (ASICs) to compete against each other in a race to guess an extremely large number. Every 10 minutes on average, according to a Poisson distribution, the miner who first guesses a successful number gets to add a new block to the Bitcoin blockchain, earning the block reward. The block reward is made up of the deflationary block subsidy, which halves every four years or so, and transaction fees paid by users to incentivize their transactions to be added to the next block.

Source link Bitcoin Magazine


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