How Mining Works Transactions are collected → e.g., when someone sends Bitcoin. Miners compete → to solve the mathematical puzzle of that block. First to solve adds the block → and gets rewarded with Bitcoin. The block is shared across the network → so everyone agrees it’s valid. Miner’s Rewards Block Reward → New Bitcoins generated (halves every 4 years, called halving). Transaction Fees  Small fees from each transaction.  Why is it Difficult? Very high competition (miners worldwide compete at once). Mining machines are expensive, and electricity cost is huge. Difficulty level keeps increasing over time harder to earn Bitcoin. In short: Bitcoin mining is the process of using computers to solve mathematical puzzles, verify transactions, and earn new Bitcoin as a reward.