What Is Bitcoin Mining?
Updated May 2026 · Based on live MiningBoard data
How Bitcoin Mining Works
Bitcoin mining is the backbone of the Bitcoin network. Miners use powerful computers to solve complex mathematical puzzles (called proof-of-work). When a miner solves the puzzle first, they get to add a new block of transactions to the blockchain and receive a block reward — currently 3.1250 BTC per block.
New blocks are found approximately every 10 minutes. The network automatically adjusts the puzzle difficulty every 2,016 blocks (~2 weeks) to maintain this target. As more miners join, difficulty increases. As miners leave, it decreases.
What Hardware Do You Need?
Bitcoin uses the SHA-256 algorithm. In 2024+, only ASIC miners (Application-Specific Integrated Circuits) are viable. These are purpose-built machines designed solely for mining. GPU and CPU mining Bitcoin hasn't been profitable since ~2013.
The most profitable Bitcoin miner right now is the Bitmain Antminer S23 Hyd 3U, earning $18.27/day after electricity costs.
Is Bitcoin Mining Profitable?
Profitability depends on three factors: hardware efficiency (how many hashes per watt), electricity cost (your $/kWh rate), and Bitcoin's price relative to mining difficulty.
At $0.05/kWh (industrial power), most modern ASICs are highly profitable. At $0.10/kWh (average residential), only the newest, most efficient machines break even. Above $0.15/kWh, mining is generally unprofitable with any hardware.
The Bitcoin Halving
Every 210,000 blocks (~4 years), the block reward is cut in half. The most recent halving was in April 2024, reducing the reward from 6.25 to 3.125 BTC. The next halving is expected around 2028. Halvings reduce miner income but have historically preceded major price increases.
Bitcoin Halving Countdown →Mining Pools
Solo mining Bitcoin is impractical for most miners because the network hashrate is so high. Instead, miners join mining pools — groups that combine their hashrate and share the block rewards proportionally. Major Bitcoin pools include Foundry USA, AntPool, F2Pool, and ViaBTC.