✍️ Author: Karel Havlíček – Bitcoin Analyst & Editor · 📅 Updated:
What mining is and what it’s for
Mining is the process by which new transactions get written into the Bitcoin network and new bitcoin get created at the same time. Miners worldwide compete to solve a cryptographic puzzle (proof-of-work) – whoever solves it first adds the next block to the blockchain and earns the reward in BTC plus transaction fees.
The purpose isn’t just “making bitcoin.” Mining secures the entire network: rewriting transaction history would require controlling the majority of the network’s total computing power at once – practically impossible and extremely expensive.
- Proof-of-work = proof that computational work was done
- Block reward: currently 3.125 BTC + fees (after the 2024 halving)
- A new block roughly every 10 minutes
- Difficulty auto-adjusts to the network’s total hash power
Why it doesn’t work on a PC or laptop today
In the early days (2009–2010) mining worked on a regular CPU. Today the network is mined with specialised ASIC hardware (Application-Specific Integrated Circuit) – chips built purely for computing SHA-256 hashes, thousands of times faster and more efficient than a CPU or GPU.
A modern ASIC costs several thousand euros, draws roughly 3–5 kW, and only pays off in large farms with cheap electricity. On a laptop today you wouldn’t mine even a fraction of a cent a year – electricity cost would dwarf any return many times over.
- CPU/GPU Bitcoin mining: economically pointless since roughly 2013
- ASIC: the only genuinely profitable hardware, but a high upfront investment
- The decisive cost factor: electricity price (determines profitability more than anything else)
- Industrial farms today cluster wherever energy is cheapest
Halving: why the reward keeps shrinking
Roughly every 4 years (after 210,000 blocks) the block reward is cut in half – hence “halving.” The most recent one happened in April 2024, when the reward fell from 6.25 to 3.125 BTC. There will only ever be 21 million bitcoin, with the last one mined around the year 2140.
Halving keeps squeezing miner profitability over time – a smaller reward means only those with the cheapest electricity and the most efficient hardware stay in business. For an ordinary person, this means one thing: home mining is not, and will not be, a realistic path to bitcoin.
What to do instead
For the vast majority of people, simply buying bitcoin is easier and cheaper – see our Anycoin review or the exchange comparison. Anyone wanting to earn passively from their own computer can use DePIN platforms that share unused bandwidth or compute power (not mining!) – see the overview on the Earn Free Bitcoin page.
✅ Pros
- Secures the network against fraud
- Decentralised issuance controlled by no one
- Transparent, predictable schedule (halving)
⚠️ Cons
- High upfront investment in ASIC hardware
- High electricity consumption
- Not economically viable at home today
❓ Frequently asked questions
Can I mine Bitcoin on a laptop?
Technically yes, economically no. A laptop’s power is negligible against ASIC hardware – you’d earn fractions of a cent a year while electricity cost would dwarf any return.
How much does ASIC mining equipment cost?
Roughly several thousand euros for a modern unit, plus high running costs for electricity and cooling. Profitability depends heavily on electricity price and the current BTC rate.
What is the halving?
An event every 4 years that cuts the block reward in half. The most recent one happened in April 2024 (6.25 → 3.125 BTC). It caps total supply at 21 million BTC.
Is mining the same as DePIN platforms like Grass or Bless?
No. DePIN platforms don’t perform proof-of-work mining – they sell your unused bandwidth or compute capacity to companies and pay in their own token, which can later be swapped for BTC. It’s a completely different economic model.
Want to know more about money and inflation? Read the series: Inflation Explained → The End of the Gold Standard → Be Your Own Bank.
This article is purely educational and contains no affiliate links. For buying Bitcoin we recommend regulated exchanges – see the comparison above. Not financial advice.