Crypto mining basics

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Bitcoin mining is the process of creating new bitcoins by solving extremely complicated math problems that verify transactions in the. Bitcoin mining is. Bitcoin mining refers to the process of digitally adding transaction records to the blockchain, which is a publicly distributed ledger.

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Bitcoin "mining" serves a crucial function to validate and confirm new transactions on the blockchain and to prevent double-spending by bad actors. This competition led miners to create pools to gain an advantage over other miners because they needed more computational power to increase their chances of winning. Even though income from mining is shared between miners, hence smaller payouts, it is stable thanks to the higher-earning stakes.