Bitcoin Mining – A Simple Explanation


To properly understand Bitcoin mining we need to look at the basic substance of Bitcoin and how it functions. Bitcoin runs on a public network called the blockchain. This network connects all Bitcoin users in the world and contains the public ledger. The public ledger is like a book where each Bitcoin transaction ever made is written down. If someone spends or receives Bitcoin, a transaction is broadcast on the network and once it is confirmed to be added permanently to the public ledger, the transaction is successful.
Are you curious about mining Bitcoin or other cryptocurrencies? In this video I will explain the basics of Bitcoin mining in simple terms, so the average person can understand what the heck all this mining fuss is about!

To properly understand Bitcoin mining we need to look at the basic substance of Bitcoin and how it functions. Bitcoin runs on a public network called the blockchain. This network connects all Bitcoin users in the world and contains the public ledger. The public ledger is like a book where each Bitcoin transaction ever made is written down. If someone spends or receives Bitcoin, a transaction is broadcast on the network and once it is confirmed to be added permanently to the public ledger, the transaction is successful.

So basically, mining is the process of adding transactions onto the public ledger. Let’s go slightly deeper into how this works. Miners are computers which collect all the recent transactions broadcast by other Bitcoin users, verify that the transactions are valid and compile them into what’s called a transaction block which is then permanently added to the ledger.

Remember that you should never invest money into cryptocurrency that you cannot afford to lose! There is risk involved just like any other high return investment. I am not your financial advisor nor is this financial advice.

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Music by Joakim Karud http://youtube.com/joakimkarud

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