Helping businesses choose
better software since 1999
better software since 1999
Guides & Research
Capterra Glossary
Bitcoin mining is facilitated by a global network of computers that ensure bitcoin transactions are valid and correctly added to the blockchain. Bitcoin miners use software applications to solve transaction-related cryptographic algorithms that check the validity of bitcoin transactions. Bitcoin miners are often rewarded a varying number of bitcoin per block mined. This encourages bitcoin miners to continue verifying bitcoin transactions, upholding the overall digital ledger system.
Investors and investment groups often participate in Bitcoin mining due to its financial benefits. By successfully mining Bitcoin blocks, investors are able to receive Bitcoin without having to actually pay for it. Bitcoin mining is mutually beneficial to both the miner and the system because Bitcoin mining upholds the Bitcoin digital ledger system that allows profits.