Bitcoin Mining 101

Evolution

Of money

vertical_line
money_evolution

BTC

Mining

1stblock
The entire blockchain began with the first block in 2009.
mining-math
To create a new block, miners must find a SHA256 hash to meet specific requirements.
hash-requirements
These must include the header of the preceding block, be less than or equal to the target number, and a number called NONCE.
tarjet
This number is decided every 2016 blocks (every 2 weeks), by every client connected to the BTC network.
btc-mining-icon-05
Miners use software to generate millions of operations per second until a new hash is found.
the-chain
Since each block contains the hash of the previous block, they are linked together in a long data chain.
reward-bq
BTCs are awarded to the miners that find the hash and create the new block.
transaction
As BTCs are transferred from one wallet to another, the transactions are digitally signed and stored publicly on the body of the block.
security
The hashing process makes the cryptocurrency almost impossible to counterfeit.

BTC Mining

BTC Timeline​

2008

Introduces and creates Blockchain and BITCOIN (BTC) Protocol.

2016

Enters in a new bull market.

2009

First BTC mining and transaction.

2017

All time high around $20,000.

2010

·The first real-world transaction took place to purchase pizza.
$52,000.
·Lazlo Hanyecs bought two pizzas for 10,000 BTC.
·That BTC today worth over 100M.

2018

The price hits rock bottom at $3,250.

2011

The first online store to accept BTC as payment was launched in February 2011.

2020

Hits all time high $28,000.

2013

BTC Market Cap exceeds $1Billion.

2021

All time high $40,000.

·BTC price hits all time high $52,000.

·BTC price hits all time high $57,000.

·BTC price hits all time high $63,000.

BTC Timeline​

2008

Introduces and creates Blockchain and BITCOIN (BTC) Protocol.

2009

First BTC mining and transaction.

2010

·The first real-world transaction took place to purchase pizza.
$52,000.
·Lazlo Hanyecs bought two pizzas for 10,000 BTC
·That BTC today worth over 100M.

2011

The first online store to accept BTC as payment was launched in February 2011.

2013

BTC Market Cap exceeds $1Billion.

2016

Enters in a new bull market.

2017

All time high around $20,000.

2018

The price hits rock bottom at $3,250.

2020

Hits all time high $28,000.

2021

All time high $40,000.

·BTC price hits all time high $52,000.

·BTC price hits all time high $57,000.

·BTC price hits all time high $63,000.

BTC Timeline​

BTC Timeline​

Bitcoin

Mining

Business

Model

Bitcoin Mining

The engine that fuels the Bitcoin ecosystem, processes & confirms transactions while
providing security to the Bitcoin Blockchain.
Bitcoin-mining

A user sends money from their wallet to another wallet. Bitcoin transactions are pooled together in a “block” & encrypted by a complex puzzle.

bitcoin-bq

Once a block is formed, miners compete to solve the puzzle. Once solved, the transactions are “verified” by the network.

Bitcoin Miner

A computer designed to solve Bitcoins mathematical algorithm. Miners are
rewarded with Bitcoin for solving the puzzle.
bitcoin-miner

The new block of verified transactions is attached to a chain of prior blocks. The user sending the transaction gets their confirmation.

btc_hands

Miners are paid in Bitcoin for solving the puzzle. Currently, a block is solved every 10 minutes and the winning miner is paid 6.25 bitcoins.

Bitcoin
Mining
Business
Model

Bitcoin Mining

The engine that fuels the Bitcoin ecosystem, processes & confirms transactions while
providing security to the Bitcoin Blockchain.

Bitcoin Miner

A computer designed to solve Bitcoins mathematical algorithm. Miners are rewarded with Bitcoin for solving the puzzle.    
Bitcoin-mining

A user sends money from their wallet to another wallet. Bitcoin transactions are pooled together in a “block” & encrypted by a complex puzzle.

bitcoin-bq

Once a block is formed, miners compete to solve the puzzle. Once solved, the transactions are “verified” by the network.

bitcoin-miner

The new block of verified transactions is attached to a chain of prior blocks. The user sending the transaction gets their confirmation.

btc_hands

Miners are paid in Bitcoin for solving the puzzle. Currently, a block is solved every 10 minutes and the winning miner is paid 6.25 bitcoins.