Eli5: how does one mine for bitcoins.

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I understand that it’s computers but who owns these computers and can you mine for bitcoins in any location or are certain locations better than others.

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13 Answers

Anonymous 0 Comments

Mining for bitcoins is no different than rolling dice.

Imagine you play a board game “roll more than 3 and you go to next level!”. Normally you roll a die till you roll 4, 5 or 6 number. Then the next “level” gets harder, and you have to roll exactly 6. To compensate for the difficulty spike you invest in better mining equipment, which lets roll two dice instead of one every turn. And the cycle continues.

Mining is the same, except “rolling the dice” is generating a random hash function result. But in essential concepts those two are the same – the first person to “roll” a good number – out of all those who roll – wins.

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