How Bitcoin Mining Works

Unlike banking systems or commodity exchanges, Bitcoin transactions do not include an intermediary who records and verifies all transactions. All those Bitcoin transactions are verified by the miners via blockchain or block chain. When Bitcoin transactions occur simultaneously, they are all grouped into the same group. This group is known as the blockchain. The group is verified by bitcoin miners.

Therefore, Bitcoin transactions are verified in groups rather than individuals. Once verified, Bitcoin transactions will be entered or added to the verified block chain. To obtain Bitcoin, miners would require hardware and software to mine bitcoins that have been verified through the Blockchain. Miners would need a computer with special specifications to mine Bitcoin. These computer devices are absolute or must be owned by Bitcoin miners.

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