What is Bitcoin Mining? The Complete Guide – Bitcoin Magazine

What is bitcoin mining?

Bitcoin mining is the pillar that keeps the Bitcoin system upright, functioning, and thriving. It is based on a type of governance mechanism called a distributed proof-of-work (PoW), designed to incentivize participation and facilitate Bitcoin’s network growth, security, and decentralization.

​​Bitcoin issuance is identified as mining because it recalls mining gold and other minerals, even though there’s no digging deep underground or in caves. In short, bitcoin mining can be explained as the process that enters new bitcoin into circulation and adds new transactions to the Bitcoin timechain (also called a blockchain).