What is Bitcoin Mining? (In Plain English)

12 jul. 2018
1 914 642 Weergaven

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Bitcoin mining is the process of updating the ledger of Bitcoin transactions known as the blockchain. Mining is done by running extremely powerful computers (known as ASICs) that race against other miners in an attempt to guess a specific number.
The first miner to guess the number gets to update the ledger of transactions and also receives a reward of newly minted Bitcoins (currently the reward is 12.5 Bitcoins).
Today, in order to be profitable with Bitcoin mining you need to invest heavily in equipment, cooling and storage. It’s not possible to mine profitably with a PC or a GPU at home. You can calculate your profitability using a Bitcoin mining calculator.
0:20 - Bitcoin mining in a nutshell
3:13 - Mining difficulty and block time
4:22 - Evolution of Bitcoin mining hardware
6:30 - Bitcoin mining pools
7:24 - Is Bitcoin mining profitable?
10:41 - Other types of mining
13:14 - Frequently asked Questions
15:20 - Conclusion
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Reacties
  • CAUTION!! Many scammers are using the comment section to promote their scams and sometimes even use the name “99Bitcoins” in their profile. Never send money to someone you don’t know and don’t accept offers to trade or exchange cryptocurrency from strangers. Stay safe 🙏🏻🙏🏻🙏🏻

    99Bitcoins99Bitcoins5 maanden geleden
    • Plain English huh?🤯

      DEALWITHIT DREALISTDEALWITHIT DREALIST3 dagen geleden
    • bitcoin is the biggest scam in history .

      WillowWillow3 dagen geleden
    • @CA Rachana Phadke Ranade Beware of scam...greeds is the roots of people falling into a scam

      Malaysian FirstMalaysian First6 dagen geleden
    • So you're essentially paying millions of dollars and electricity for a currency that really has no value it sounds good for the environment.

      Real AmericanReal American10 dagen geleden
    • Ye someone just sended one to me lol

      MarkTheNewbie GamingMarkTheNewbie GamingMaand geleden
  • I was scared when dealing with him , but kixhack on !nsta cash flip me 5k through them

    Tim MooreTim MooreUur geleden
  • I was scared when dealing with him , but kixhack on !nsta cash flip me 5k through them

    Tim MooreTim MooreUur geleden
  • I was scared when dealing with him , but kixhack on !nsta cash flip me 5k through them

    Paulo PalmsPaulo PalmsUur geleden
  • I was scared when dealing with him , but kixhack on !nsta cash flip me 5k through them

    Paulo PalmsPaulo PalmsUur geleden
  • Can you talk about BITTORENT COIN ?

    Els ShayEls Shay6 uur geleden
  • Who will give value to bitcoin

    85 EE Siddhartha85 EE Siddhartha8 uur geleden
  • What the hell is he taking about

    Smart ChocolateSmart Chocolate12 uur geleden
  • Are you reading out of a teleprompter?

    FawasFawasDag geleden
  • This was a great video. I still am lingering on what happens at the end of mining? Where do recent live transactions sit before being mined and added to the ledger?

    TheRabbittzTheRabbittzDag geleden
  • What happens when all bitcoins are mined?

    TheRabbittzTheRabbittzDag geleden
  • What are we guessing a solution to? I’m lost from the get go...

    Joy LawrenceJoy LawrenceDag geleden
  • Lost me at guess the number

    Name UserName UserDag geleden
  • Still sounds like a scam to me

    Dylan LientzDylan Lientz2 dagen geleden
  • sounds like a ponzi scheme

    J. JohnsonJ. Johnson2 dagen geleden
  • How are there thimbs down? Its strictly informative. They hate facts? Idiots..

    Alexander EvansAlexander Evans2 dagen geleden
  • Safe Moon 10% charge for sellers 5% goes to holders 5% goes to developers Great concept & New Worth a long term holding for any small crypto portfolio Once made easier to buy will be very interesting Q4 2021 Just Saying

    mr sniff/lick & wetmr sniff/lick & wet2 dagen geleden
  • Is mining equivalent to theft of bitcoin from the system? How is this different say from malware that could milk money from real money accounts?

    DBDB2 dagen geleden
  • So does this convince anyone to start investing? Just curious!

    Alternatively ModernAlternatively Modern2 dagen geleden
  • Great video and fantastic explanation ... but I still don't undestand...

    D.Harold AngelD.Harold Angel3 dagen geleden
  • would it damage my computer in anyway?

    luushyluushy3 dagen geleden
  • One concept I can't wrap around my head is, if every user/individual in the blockchain has the exact same data/ledger information isn't this data redundancy at the tremendous level, and how much data storage is used for every single transaction ??!!!!??

    Excel GuyExcel Guy3 dagen geleden
  • Oh! I get it now.

    BooksOfBloodBooksOfBlood3 dagen geleden
  • Make it so complicated and you can fool the world.

    David ColeDavid Cole3 dagen geleden
  • The weak link in all of this is it needs electricty, AC or DC, if you lose that you are Fcuked. There is no hard copy ledger any where. The old Bank receipt book, a few of you may remember, is a hard copy statement of what you own, unless you distroy it. If you own a house, outright, no one can take it away from you, and If you own gold that's your's for life, it's all tangible, you can kiss it, hug it, you own it and pass it on to your kids.

    David ColeDavid Cole3 dagen geleden
  • The Wolf of Wall Street says Bitcoin is a scam… and he should know - NLworld

    WillowWillow3 dagen geleden
  • THE SOLUTION TO WHAT ....... WHAT ?

    WillowWillow3 dagen geleden
  • CLEARLY A SCAM . NO SENSE IN ANY OF THIS .

    WillowWillow3 dagen geleden
  • Maybe I missed it, but where do the math problems come from?

    Justin ThrasherJustin Thrasher4 dagen geleden
  • I'm entirely convinced that this is a made-up system to try to screw people out of money. You can't just generate money out of nowhere that's not how finances work. None of this makes any sense at all. You can just update your bank ledger? Great I guess I'm a millionaire now because I said so. None of that makes any sense this is total crap

    Chris DurhamChris Durham4 dagen geleden
  • And now Bitcoin values are $55k looks like its profitable.

    ugot rippedoffugot rippedoff4 dagen geleden
  • So basically mining cryptocurrency is a light we have saying stealing crypto and then selling it. Honestly they should be illegal

    Josef WartoJosef Warto4 dagen geleden
  • Suppose everyone stops mining, what will happen to the Blockchain network? Who will update the ledger then?

    Lithin KoshyLithin Koshy5 dagen geleden
  • This video not only taught me that I have the memory and intellect of a fish but ... er what was I saying? :D

    Paul DeckardPaul Deckard5 dagen geleden
    • I don't know what you just said but I agree and also give up.

      CoinsniperCoinsniper3 dagen geleden
  • Still clear as mud.

    BigSarge36BigSarge365 dagen geleden
  • That moment you realize that you’re stupid

    Gabriel M.Gabriel M.5 dagen geleden
  • Bitcoin

    Alex MackenzieAlex Mackenzie5 dagen geleden
  • Bitcoin

    Brooke JennaBrooke Jenna5 dagen geleden
  • Bitcoin

    Taylor JordanTaylor Jordan5 dagen geleden
  • Doge to the moon!!!

    Peter LouPeter Lou5 dagen geleden
  • This has to be a joke. Description says plain English

    fireboybxfireboybx5 dagen geleden
  • Perfect Explanation!

    Shreeyash KhalateShreeyash Khalate5 dagen geleden
    • Bitcoin investment and bitcoin trading is basically predicting the rise and fall of the market value of certain commodities over a specified period of time

      Taylor JordanTaylor Jordan5 dagen geleden
  • How is this any different than a Ponzi scheme?

    bud irvingbud irving5 dagen geleden
  • Lot of bots

    Rusty ShacklefordRusty Shackleford6 dagen geleden
    • @Meet Kelvin my point

      Rusty ShacklefordRusty Shackleford5 dagen geleden
  • Brilliant explanation

    Donal O'ConnorDonal O'Connor6 dagen geleden
  • Oh that’s why i see typa ad that pay to sites more than they actually make with the product. But they are using our phone to mine bitcoins

    Virender SainiVirender Saini6 dagen geleden
  • Amazing I wish my school teachers where as great and knowledge and nest explaining quality like him

    mitali mulaymitali mulay7 dagen geleden
  • This is the dumbest thing I ever heard of and can't wait till it all falls apart

    Brian SypniewskiBrian Sypniewski7 dagen geleden
  • ok, so on the app ifunny i had to download an app to block data mining (didn't know what that meant until this video), when i would use the app it would make my phone crazy hot when i used it. they were using my phone to mine stuff like this? without consent either. you open the app and it would just start using the phone and not give me a return. isn't that illegal? i would also like to point out that they still ran ad's on the app too. how money hungry were they?!

    TheCommanderDashTheCommanderDash7 dagen geleden
  • I keep thinking/hearing the words "ponzi skeem" relating to bitcoins.

    viewomeviewome7 dagen geleden
  • sounds very confusing

    BlackThaiBlackThai7 dagen geleden
  • Bill maher makes it sound like youre playing minecraft. Nope. Just observing numbers. No different from the current economic system.

    Dmitri TelvanniDmitri Telvanni7 dagen geleden
  • This video sucks. It is unclear right from the start. Guessing a random number? What number? Where? When?

    Quang Sơn LêQuang Sơn Lê7 dagen geleden
  • Reading this as bitcoin is at 69k cad ...

    Nino I.Nino I.7 dagen geleden
  • I don't understand the system how it's working

    AFRICAN CULTURE GHETTO KINGAFRICAN CULTURE GHETTO KING8 dagen geleden
    • My own bank is stealing from me

      AFRICAN CULTURE GHETTO KINGAFRICAN CULTURE GHETTO KING8 dagen geleden
  • Mining crypto currency is a waste of time and money. You are better off buying a fresh alt coin like safemoon or bonfire coin. Because they are just new out these coins have some seriously great returns. Just remember there is risks to everything, so only risk what you are comfortable with

    Investing In CryptoInvesting In Crypto8 dagen geleden
  • I'm loving these explanations. The one thing I take issue with is the notion that banks have all the authority to do what they want with your money. Not true where there is a stable and reliable legal system to hold them accountable. In other words, if they won't give me my money, I can sue them to make them. They are not all-powerful in the way that the narrator suggests.

    Kerry O'BrienKerry O'Brien8 dagen geleden
  • This maybe an obvious question....if bitcoins are on a ledger in every computer involved then how did someone loss a million bitcoins when they lost their computer?

    Jerryz ChannelJerryz Channel8 dagen geleden
  • Question......if transactions are only possible if miners create blocks, does that mean that once the last bitcoin is mined transactions are no longer possible?

    Dejan RadicDejan Radic8 dagen geleden
  • So the mining is trying to guess the code of the transactions in the blockchain? Guess right and you are rewarded bitcoin? I'm going to invest in the companies that are investing in the blockchain.

    J QJ Q8 dagen geleden
  • This all sounds like a scam... "Mining" on line (0's and 1's)... Are there infinite bitcoins or is there a set number..?

    Tavo 323Tavo 3238 dagen geleden
  • It's a fake token

    moto crossmoto cross8 dagen geleden
  • So wait... If I gues A number I get more money than I have ever had before... Me need to mine the bit coin!

    Weirdestchild SkatesWeirdestchild Skates8 dagen geleden
  • Bitcoin wants to be visa

    Demarcus ADemarcus A8 dagen geleden
  • This is soooo annoying.... where's my goddamn debit card. The funny thing is I see companies now that are paying people to learn how to mine... just like being a coal miner except you do it from your home. The more things change the more they stay the same. I love how you're glazing over the fact that these mining practices are consuming more energy than cities. It takes an extreme amount of energy and power to mine for Bitcoin. You're talking like it's going to be a few dollars extra on your electricity bill.

    Charles BryantCharles Bryant9 dagen geleden
  • What the fuck is he on about

    John G 1977John G 19779 dagen geleden
  • So its just a stupid guessing game for Nesting-Doll-Yacht-Rich people. Got it...

    Luke ShafferLuke Shaffer9 dagen geleden
  • Stocks are good but crypto is more profitable

    James St. PatrickJames St. Patrick9 dagen geleden
  • So what happens if a shtf situation happens and everything goes out

    Elite Tile SettingElite Tile Setting9 dagen geleden
  • What?

    Kwality KontrolKwality Kontrol9 dagen geleden
  • So after watching this well-oiled presentation, I am left believing more strongly than ever that this is the grand-daddy of all Ponzi schemes. Soooo, computers solve a mathematical problem, the owners of said computers are rewarded with an imaginary prize, and out of this hocus-pocus, a new economic system is born. All without anyone lifting a finger to do any actual physical labor that can be translated into a valuable commodity. This is the pipe-dream of anyone who is too damn lazy to learn a craft and just wants to sit around all day in a dark room listening to their banks of over-heating computers whirring away while drool runs down their chin at the thought of all the potential Monopoly money they might be earning. If this is the future of human society, count me out. This is nothing more than the lottery game to end all lottery games. Go on people, throw away your potential talents, and dream on, that you, and you alone, will be the big winner. The person with the biggest array of computing power will win this game time after time. The big players will band together and freeze out all the little guys. Gee, that sounds disturbingly similar to the banking system we have now. P.T. Barnum had the perfect statement to this situation: "There is a sucker born every minute." Stop being sheeple, people.

    Nicholas OppenheimerNicholas Oppenheimer10 dagen geleden
  • This reminds me of the savings and loan crisis back in 2008, banks sold property buyers mortgages to other banks called derivatives and those banks split the loans up into several loans selling them to other banks and so on , then when property buyers began defaulting on the loans because the interest rates increased , the whole scheme became unraveled very quickly, and nobody could figure out who had the original loan or what bank financed it and was responsible for the mess, or where the deeds to the properties were , who owed what amount or had their loan paid off, The Obama administration had to have the crooks that started the concept sort out the disaster, because it was too complex for anybody with a normal understanding of how finance works to unravel the mess , if something doesn't sound like it makes sense to you and can't afford to lose your money , I would stay away from this, it could come crashing down as quickly as it increased in value,

    Blue MouseBlue Mouse10 dagen geleden
  • To complicated your explanation

    Mauricio LicoMauricio Lico10 dagen geleden
  • So if banks work fine already then why is this even necessary? Crypto was originally used drugs and black market deals to hide funds from the government. Since the IRS tracks it now, I don't see how its more than anything but a Stock at this point. Also isn't it limited to 8 transactions a second so if the price starts dropping who knows how long it will take the millions of owners to sell.

    Big McBig Mc10 dagen geleden
  • Hmm So interesting! Been thankful for Bitcoin since the very start! Grateful

    Modoo ChrisModoo Chris10 dagen geleden
  • This sounds fucking dumb.

    Tyler StaheliTyler Staheli10 dagen geleden
  • Plain Eňğļï§h

    Arcadius LexArcadius Lex11 dagen geleden
  • Very clear explanation, thank you!

    Babajao WBabajao W12 dagen geleden
  • Bitcoin trading should be on the top list of every wise individual for an investment

    Christian hopesonChristian hopeson13 dagen geleden
  • @8:30 "Difficulty" is misspelled.

    David PaulDavid Paul13 dagen geleden
  • 6:37

    JaydenJayden13 dagen geleden
  • it was said in Hindu Veda in the last phase of earth's cycle i.e kalyug moron will beat water with a stick to separate it... so we have them here.. " bitcoin Mining"

    girish gaurgirish gaur14 dagen geleden
  • Could any one tell which is better to spend time on Litecoin or Dogecoin?

    DRAGON HEATDRAGON HEAT14 dagen geleden
  • Y’all please catch a break This mining process is not compulsory for any investors really Leave mining for who mines and go ahead with your trading With the presentation he just made, the mechanism needed for mining isn’t even available for even 10/100 individual traders in the market It’s not worth sweating for

    Thomas EdwardThomas Edward14 dagen geleden
  • Lost me at 0.12

    Scott JakemanScott Jakeman14 dagen geleden
    • Lol It’s easy to get the hang of it

      Thomas EdwardThomas Edward14 dagen geleden
  • Oh my gos so helpful for school

    Helio BaetenHelio Baeten14 dagen geleden
  • I came for answers, I leave even more puzzled.

    Boogieman907 SBoogieman907 S14 dagen geleden
    • What do you need to know?

      Sandra GuntherSandra Gunther14 dagen geleden
    • It’s quite clear

      Sandra GuntherSandra Gunther14 dagen geleden
  • I think I lost brain cells after watching this vid

    Jamie BaraiyaJamie Baraiya14 dagen geleden
    • Easy

      samuel stephensamuel stephen14 dagen geleden
  • I have a question: why is the channel called 99 Bitcoins?

    Tomas Joel BeramendiTomas Joel Beramendi15 dagen geleden
  • this whole thing sounds to me like a big scam.... just my opinion

    Maria USAMaria USA15 dagen geleden
  • Legends say : he is satoshi nakamuto

    ultimate dragon of positivityultimate dragon of positivity15 dagen geleden
  • Mines right out of the backyard!

    KC MOKC MO15 dagen geleden
  • No idea what he is talking about. A guessing game where I can reward myself by giving me billions of non-existent currency?

    Antony BellinghamAntony Bellingham15 dagen geleden
  • Bitcoin is here to stay

    projëctfinänce.projëctfinänce.15 dagen geleden
  • Bitcoin have come and always come to stay

    projëctfinänce.projëctfinänce.15 dagen geleden
  • This explanation will help you understand less than you could prior to watching it

    NET MATENET MATE16 dagen geleden
  • Hello

    Focus AjiFocus Aji16 dagen geleden
  • Super

    Alex H.Alex H.16 dagen geleden
  • I’m a beginner.... What will happen if no one will MINE or those who are mining just STOP? 😊

    Engr. Leth AEngr. Leth A16 dagen geleden
    • Literally they can’t stop

      Sandra GuntherSandra Gunther14 dagen geleden
  • You didn't mention putting out actual cash to buy a bitcoin(well you did mention checking them out before investing, but you didn't say how much cash!),as of fall 2019 or 20: 1 bitcoin costs 6000$,now they're up to 65000$! And how do you cash them out?

    david russelldavid russell16 dagen geleden
    • You trade!

      samuel stephensamuel stephen14 dagen geleden
NLworld