What is cryptocurrency mining?

Cryptocurrency mining is the process of creating new units of cryptocurrency by solving complex mathematical problems on a blockchain. 

It involves computer processors, GPUs, and electricity. Not all cryptocurrencies use proof of work, some use proof of stake instead.

How crypto mining works

In short, crypto mining is how new units of cryptocurrency are created. As you can imagine, this type of mining doesn’t involve callused hands gripping pickaxe handles. 

Instead, it’s computer processors that do all the hard work, chipping away at complex math problems.

Read more: How to buy Bitcoin — Step-by-step guide on buying cryptocurrency

Mined vs non-mined cryptocurrencies

Cryptocurrencies can be divided into two categories: mined and non-mined. Mined cryptocurrencies, such as Bitcoin, require miners to solve complex mathematical problems to create new units of the currency. 

Non-mined cryptocurrencies, such as Ripple, are created in different ways, such as through airdrops or pre-mining.

The future of mining

The future of mining is uncertain. Some experts believe that the rise of non-mined cryptocurrencies will eventually lead to the decline of mining. 

Others believe that mining will continue to be an important part of the cryptocurrency ecosystem.