What is bitcoin mining?

Bitcoin mining is the process of adding new transactions into circulation. Bitcoin miners use software that accesses their processing capacity to solve transaction-related algorithms. In return, they are awarded a certain number of bitcoin per block. This entices cryptominers to keep solving the transaction-related algorithms, supporting the overall system. The process is called proof of work.

Originally, bitcoin mining was conducted on the processors, or CPUs, of individual computers, with more cores and greater speed resulting in more profit. After this, most bitcoin miners began using multi-graphics card systems, then field-programmable gate arrays and application-specific integrated circuits. These moves were made in an attempt to find more hash codes below a given target and use less electrical power.

It once was possible for anyone to mine bitcoin, but not anymore. Bitcoin code is written to make solving its transaction-related algorithms, or puzzles, more challenging over time. This means that solving these puzzles requires more computing resources. Access to powerful computers and large amounts of electricity is now a must. In the malware world, one of the more prevalent current threats is mining botnet infections, where user systems mine for bitcoin without the owners’ knowledge and the funds are channeled to the botnet owner.

Business Insider India estimates that 100% of all bitcoin will have entered circulation by 2140.