Mining
MarketsDefinition
The proof-of-work process of validating transactions and minting new coins by solving cryptographic puzzles. Bitcoin's consensus mechanism. Highly energy-intensive: global Bitcoin mining consumes ~0.5% of world electricity.
Profitability depends on coin price, hash rate, electricity cost, and ASIC efficiency. Halving every ~4 years cuts the block subsidy in half, historically followed by parabolic price rallies as the supply shock works through.
Profitability depends on coin price, hash rate, electricity cost, and ASIC efficiency. Halving every ~4 years cuts the block subsidy in half, historically followed by parabolic price rallies as the supply shock works through.