✅ You Understand the Mining Race
Master mining competition, difficulty adjustment, and pooled mining economics
Your Progress
0 / 5 completed🎯 Key Takeaways
You've learned how cryptocurrency mining works as a competitive race, how difficulty adjustment maintains network stability, and why mining pools dominate the landscape.
Winner Takes All
Mining is a zero-sum game. First to find valid hash gets 6.25 BTC + fees (~$250K). Everyone else's work is wasted. Race resets every block.
Self-Regulating Difficulty
Every 2016 blocks, difficulty adjusts to maintain 10-min block time. More hash rate = higher difficulty = same issuance rate (~900 BTC/day).
400 EH/s Network
Bitcoin network hash rate: 400 quintillion hashes/sec. Requires industrial-scale operations with specialized ASICs and cheap electricity (<$0.05/kWh).
Mining Pools Dominate
Solo mining takes years to find block. Pools provide daily payouts proportional to contribution. Top 4 pools control ~70% of hash rate.
Profitability Equation
(Hash rate / Network rate) × Blocks/day × Reward × BTC price - Electricity cost. Margins thin at $0.10/kWh, excellent at $0.03/kWh.
Centralization Risk
Geographic concentration (cheap energy) and pool dominance create centralization risks. Miners can switch pools, but ecosystem must stay vigilant.
📊 By the Numbers
Test Your Knowledge!
Ready to verify your understanding? Take this 5-question quiz on the hash race!