Bitcoin mining, explained

What Is a Bitcoin Miner?

No jargon, no moon-talk. What a miner actually is, what it does all day, and what it really takes to run one. Then the part most guides leave out.

A row of Bitcoin miners
Heard the word a hundred times, never got a straight answer? A miner is simpler than it sounds. Here it is, plainly.
First, the big picture

Before miners click into place, one quick thing about Bitcoin itself.

Bitcoin is money with no bank in the middle. Normally a bank keeps the ledger, the running list of who owns what. Bitcoin hands that job to thousands of computers around the world instead. They all keep the same shared record, called the blockchain, and they all have to agree on it. No single company owns it, and no one can quietly change it.

That shared record is the blockchain. Adding the newest block to it, that is mining.

Nodes and miners

So who keeps that shared record? Computers called nodes. The ones that write the next page are the miners.

Every computer running Bitcoin is a node. It holds a full copy of the blockchain and checks that every transaction follows the rules. Miners are nodes with one extra job: they gather up recent transactions and compete to add them as the next block in the chain. That work is what keeps Bitcoin running, and it is the work you get paid for.

The machine

A Bitcoin miner is just a computer. One that does a single job, faster than any laptop could.

It isn't digging anything out of the ground. It's a small, specialised machine: a chip, a fan, a power cable. All day it does one thing, over and over, millions of times a second. That's it. The mystery is mostly the name.

What it does

So what is that one job? Guessing.

Every ten minutes or so, the whole Bitcoin network runs a lottery. Miners around the world race to guess a number that fits. The first to find it gets to add the next block of transactions, and earns fresh Bitcoin for the work. That guessing is also what keeps the network honest. No miners, no security. No security, no Bitcoin.

Electricity in, guesses out, Bitcoin for whoever guesses first.

The catch

A miner's only real input is electricity. That one fact decides everything.

More guesses means better odds, and every guess costs a sliver of power. So a working miner draws about as much as a space heater running around the clock. Which means the whole game comes down to a single number: what you pay per kilowatt-hour.

The myth

"Mining isn't profitable" is true for almost everyone. Not because it's a scam, because of that number.

The big farms don't win on magic hardware. They win because they've hunted down the cheapest power on earth. A miner running on normal household rates can't keep up, and that's where "mining is dead" comes from. Flip that one number, get your power cheap or free, and the same machine that loses money for everyone else quietly starts working for you.

The thing that makes mining "dead" for most people is the exact thing you can solve.

A 21energy heater warming a room
Use the same power twice Warmth now, Bitcoin you keep.
The part guides skip

Almost all the power a miner uses comes back out as heat. Waste it and mining is expensive. Use it and the maths flips.

A miner is a computer, and like any computer it runs warm. Nearly everything you feed it leaves as heat. Our heaters put that heat to work warming your room while the same electricity earns you Bitcoin, and Port runs the miners on surplus solar or cheap off-peak power without you touching a command line. One stream of electricity, two useful jobs: warmth now, Bitcoin you keep.

Power in. Bitcoin and heat out. Nothing wasted.

How to start

Four things, that's the whole list. No trading desk, no computer science degree.

A miner to do the work, electricity to run it, a wallet where your Bitcoin lands and stays yours, and a mining pool so your machine teams up with others and gets paid steadily instead of waiting years to win alone. Set it up once and it runs on its own. If you'd rather it also heat your home, that's where we come in.

  • A miner, the machine that does the work
  • Cheap electricity, the one number that matters
  • A wallet, where your Bitcoin lands and stays yours
  • A mining pool, so payouts come steady
New to mining? Start here

Port makes it plug and play

Don't want to wire up pools and configs by hand? Connect your miners to Port and it handles the rest. The cleanest way to start, and it grows with you.

  • Plug and play, ready in minutes
  • Up to 4 miners from one Port
  • Run them on surplus or off-peak power
  • Control everything from one app
From €157,50 Get Port
21energy Port

A miner, in one breath

  1. A miner is just a fast, single-purpose computer
  2. All day it guesses numbers to win blocks and earn Bitcoin
  3. Its inputs are electricity; its outputs are Bitcoin and heat
  4. Mining only fails when your power costs too much
  5. Get power cheap, reuse the heat, and it works for you
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