Bitcoin mining is the process of assembling valid, unconfirmed transactions into candidate blocks and competing to add a block to the Bitcoin blockchain. Specialized computers repeatedly hash block headers; if a valid block is accepted into the chain with the most cumulative proof-of-work, the miner or pool can receive the block subsidy and transaction fees.
Mining does not let miners change Bitcoin’s rules: full nodes independently check blocks and reject those that violate them. For a beginner, the key points are how proof-of-work works, how miners are paid, and why mining today requires specialized hardware and careful cost estimates.
What Bitcoin miners do
Nodes relay transactions that pass their checks, and mining software selects candidate transactions—often weighing their fees, validity, and available block space. A miner assembles a candidate block, performs proof-of-work, and broadcasts the block if it finds a hash that meets the network target.
Mining is not solving an equation with one predetermined answer. Each hash attempt is an independent trial. The miner double-hashes an 80-byte block header with SHA-256 and seeks a result at or below the target encoded in the header’s nBits field. More hash rate means more attempts per second, not a guaranteed win.
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How a block is mined: step by step
- Transactions enter the mempool. Nodes relay transactions that pass their policy and validity checks. Miners choose which eligible transactions to consider; they do not have to include every transaction.
- The miner builds a candidate block. It includes a reference to the previous block and selected transactions, along with a coinbase transaction. The coinbase is the first transaction in a block and pays the miner or pool the permitted subsidy plus the included transaction fees.
- Transactions are summarized. The miner hashes the transactions into a Merkle tree. Its root goes into the block header; changing a transaction changes the root and the header.
- ASICs try hashes. Mining software gives the hardware work to perform. An ASIC changes the header’s nonce and calculates hashes, looking for a value at or below the network target. Because the header nonce is only four bytes, mining software can change other inputs, including extra nonce data in the coinbase, to generate new work.
- A miner broadcasts a candidate block. A hash meeting the target is not enough on its own. The miner broadcasts the complete block, and full nodes independently check its proof-of-work, transactions, coinbase payout, and other consensus rules. A block that creates too much bitcoin or contains an invalid transaction is rejected.
- The network converges on a chain. If competing valid blocks appear close together, nodes may temporarily have different chain tips. The network converges on the valid chain with the greatest cumulative proof-of-work. A competing block that loses is called stale.
Each later block built on top adds a confirmation to transactions in the earlier block. Reversal becomes less likely as more work accumulates on the chain, but confirmation is probabilistic rather than an absolute guarantee of finality.
What is in a Bitcoin block header?
| Field | Size | Purpose |
|---|---|---|
| Version | 4 bytes | Signals block-version information. |
| Previous block-header hash | 32 bytes | Links the block to its predecessor. |
| Merkle root | 32 bytes | Summarizes the block’s transactions. |
| Time | 4 bytes | Records the block-header timestamp. |
| nBits | 4 bytes | Encodes the proof-of-work target. |
| Nonce | 4 bytes | One value miners can vary while hashing. |
The header is exactly 80 bytes. Since the nonce has a limited range, mining software also changes other header inputs—especially the extra nonce in the coinbase, which changes the Merkle root—and can update the timestamp within protocol limits. See the Bitcoin block-chain reference and the Bitcoin developer mining guide.
How Bitcoin keeps blocks near 10 minutes apart
Bitcoin’s target spacing on mainnet is 600 seconds, or 10 minutes on average—not a fixed schedule. Blocks can arrive much faster or take considerably longer because finding a valid hash is probabilistic.
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Every 2,016 blocks, the protocol adjusts the target based on how long the preceding interval took. If blocks came too quickly, the target becomes harder to meet; if they came too slowly, it becomes easier. The adjustment is limited to a maximum fourfold increase or decrease for a period. Changes in network hash rate therefore affect the odds of finding blocks between adjustments, but difficulty responds to help maintain the long-run target spacing.
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A block’s reward consists of the block subsidy plus transaction fees. The subsidy is newly issued bitcoin; fees are paid by users whose transactions are included in that block. Fees are variable and depend on user demand and available block space.
| Reward detail | What it means |
|---|---|
| Current subsidy | 3.125 BTC per block as of August 8, 2026. |
| Last subsidy reduction | At block 840,000 on April 20, 2024, it fell from 6.25 BTC to 3.125 BTC. |
| Next scheduled level | 1.5625 BTC after block 1,050,000; its calendar date is only an estimate. |
| Halving interval | The subsidy halves every 210,000 blocks. |
These figures are documented in the Bitcoin Core chain parameters and the block 840,000 record. A block’s coinbase cannot claim more than the permitted subsidy plus its included fees; full nodes reject an overpayment. Newly mined coinbase outputs must mature for 100 blocks before they can be spent, according to Bitcoin Core consensus code.
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Solo mining or joining a pool?
| Approach | How payouts work | Main trade-off |
|---|---|---|
| Solo mining | The miner keeps the subsidy and fees if it finds a block accepted into the best chain. | Very high payout variance: a miner may wait a long time without finding a block. |
| Pool mining | A pool assigns work with an easier share target, tracks submitted shares, and distributes payouts under its rules if it finds blocks. | Usually reduces payout variance, but involves pool fees, payout rules, counterparty risk, and reliance on the pool’s systems. |
A pool share is an accounting measure of contributed work, not a fraction of a Bitcoin block or a blockchain confirmation. Only a share that also meets the network target represents a valid block candidate. For solo mining, software can request a candidate block template from Bitcoin Core using the getblocktemplate RPC; pool mining normally uses a pool protocol such as Stratum. The Bitcoin developer mining guide explains these workflows.
Hardware, electricity, and profitability
Competitive Bitcoin mining today uses ASICs—application-specific integrated circuits designed for Bitcoin proof-of-work. CPUs and GPUs were used in Bitcoin’s early years, but a normal desktop, laptop, phone, or gaming GPU is generally not competitive with purpose-built hardware. Mining also requires adequate electrical capacity, a power supply, ventilation and heat removal, reliable connectivity, and maintenance.
Electricity is a major ongoing cost, but it is not the only one. A basic estimate is:
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Estimated profit = mining revenue − electricity − pool fees − hardware cost and depreciation − cooling, repairs, hosting, and other overhead.
Hash rate, power consumption, and efficiency help describe a machine’s performance; profitability also varies with bitcoin’s price, network difficulty, fees, electricity rates, equipment uptime, and pool terms. An estimate based on current conditions does not guarantee future profit. For a profitability framework, see the Braiins profitability guide.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Common mining misconceptions and risks
- “A valid hash makes any block acceptable.” No. Full nodes independently enforce consensus rules and reject invalid blocks, even if proof-of-work is valid. See the Bitcoin Core validation overview.
- “Blocks arrive exactly every 10 minutes.” No. Ten minutes is the target average, not an appointment time.
- “A pool share confirms a transaction.” No. It is internal pool accounting, not a Bitcoin block.
- “A laptop can reliably earn mining profits.” Running mining software is not the same as being competitive; ASICs are the economically relevant hardware today.
- “Cloud mining guarantees a return.” Treat guaranteed profits or unusually high returns as warning signs. The Federal Trade Commission’s cryptocurrency scam guidance warns about such promises.
- “Mining on someone else’s device is legitimate.” Unauthorized mining software or web code that uses another person’s hardware is cryptojacking. The FTC explains how to protect devices from cryptojacking.
FAQ
Can I mine Bitcoin with a laptop or phone?
You can run software that attempts hashes, but consumer laptops and phones are generally not competitive with Bitcoin ASICs. Consider electricity, heat, hardware wear, and the likelihood of earning a payout before trying to mine.
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Does mining itself verify every Bitcoin transaction?
Miners select transactions and propose blocks, but full nodes independently check transactions and enforce Bitcoin’s consensus rules. A miner cannot make an invalid transaction valid by including it in a block.
How much does a Bitcoin miner earn for a block?
The block reward is the permitted subsidy plus the fees in that block. As of August 8, 2026, the subsidy is 3.125 BTC; fees vary, and a found block must be valid and accepted into the best chain for its reward to count.
Is mining profitable?
It depends on revenue and costs, including hardware, electricity, cooling, maintenance, pool fees, and uptime. Profitability changes with market price, difficulty, fees, and operating conditions, so no current estimate guarantees future returns.
What happens if two miners find a block at nearly the same time?
Different nodes may temporarily see different valid chain tips. Miners continue building on a tip they receive, and the network converges on the valid chain with the greatest cumulative proof-of-work. The losing block is stale, and its transactions may return to the mempool if they were not included in the winning chain.
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