What is Bitcoin Mining


Bitcoin Mining- Trying to solve complex mathmatic problems that are created by the bitcoin code. Basicly this is processing and confirming a bitcoin transaction. To do this a lot of computer power is needed and people use computer chips that are manufactured exclusively for this purpose.
Mining bitcoins takes so much computer power that people join together in a “pool” and then share the “block reward”. The block reward is given to the computer or pool that solves a “block” of transactions, at the moment the reward is 25 bitcoins. In a pool this would be divided among the people in the pool according to how much power they contrubuted to solving that “block”. At blockchain.info you can see what pool solved the latest blocks.

Below is an example of an “asic” bitcoin miner that has been manufactured to mine bitcoins