Bitcoin mining basics: hashrate, difficulty and pools

Bitcoin mining is the competition to add valid blocks to Bitcoin's blockchain. Specialized computers repeatedly calculate hashes while the network adjusts difficulty so blocks arrive at roughly the intended pace.

What is hashrate?

Hashrate measures how many hashing attempts mining hardware can make per second. More hashrate gives a miner more attempts, but it does not guarantee a block.

Why difficulty matters

Bitcoin periodically adjusts mining difficulty as network computing power changes. A miner can produce the same hashrate while earning a different amount of bitcoin over time because difficulty, fees and luck change.

Solo mining vs. pools

Solo miners attempt to find a block independently. Pools combine many miners and distribute rewards according to their rules, trading the tiny chance of a large solo win for more frequent smaller payouts.

Electricity changes the math

Hardware efficiency and local electricity cost matter. Before buying equipment, calculate watts × hours used and your utility rate rather than relying on a seller's revenue screenshot.

For beginner hardware and worked electricity examples, visit First Hash Mining. For current mining headlines, return to the Block Signal live board.