Lesson 6
What is Mining?
How new bitcoins are created
Mining is the process by which new bitcoins are created and transactions are verified. Miners solve complex mathematical problems – whoever finds the solution adds the next block and receives bitcoins as a reward.
This process is called Proof-of-Work. It secures the network: to manipulate the blockchain, an attacker would need to control more than 50% of the computing power – practically impossible.
The block reward halves roughly every four years (the "halving"), making Bitcoin increasingly scarce.
The 2028 halving will reduce the reward further – supply tightens, which historically has often led to price surges.