What is Bitcoin mining does it mean I can generate free Bitcoin from my computer is it still profitable to mine Bitcoin these days well stick around here on Bitcoin whiteboard Tuesday we'll answer these questions and more Bitcoin was created as a decentralized alternative to the banking system this means that the system can operate and transfer funds from one account to the other without any central authority with a central authority transferring money is easy just tell the bank you want to remove 50 dollars from your account and edit to someone else's account in this case the bank has all the power since the bank is the only one who was allowed to update the ledger that holds the balances of everyone in the system but how do you create a system that has a decentralized ledger how do you give someone the ability to update the ledger without giving them so much power that they'll become corrupt or negligent in their work well the rules of the Bitcoin system known as the protocol solves this in a very creative way I like to call who wants to be a banker in short anyone who wants to participate in updating the ledger of Bitcoin transactions notice the blockchain can do so all you need to do is guess a random number that solves an equation generated by the system sounds simple right of course this guessing is all done by your computer the more powerful of a computer you have the more guesses you can make per second thus increasing your chances of winning this game if you manage to guess right you earn bitcoins and get to write the next page of Bitcoin transactions on the blockchain here's a more detailed breakdown of the mining process...
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