How to mine Bitcoin?

As the price of cryptocurrencies continues to expand, an increasing number of cryptocurrency miners are entering the market. To date, there are more than one million individual Bitcoin miners (if we refer to the figures of several crypto communities). Following the ban on mining in China, the United States has recently become the world leader in mining.

How does cryptocurrency mining work?

Mining is the foundation of the cryptocurrency industry. It is indeed necessary to secure the network by validating transactions and archiving operations. Thus, when two virtual currency users exchange with each other, the transaction is verified and the data that traces the exchange must be added to what is called a block which is added to the already existing chain of blocks. This is called Blockchain technology.

Over time, the number of validated blocks grows: at the end of 2021, there were nearly 380,000 validated blocks on Bitcoin, compared to 150,000 in January 2018. The graph below, taken from blockchain.com, represents the number of blocks existing since 2009, we observe that the growth is accelerating beyond a linear logic. The size of the blocks is thus correlated with the electricity consumption of miners according to the Cambridge study. The electricity consumption for Bitcoin mining alone is equivalent to that of the Netherlands.

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