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Proof-of-Work

Bitcoin transactions are processed through a highly competitive system of proof-of-work hashing, aka mining. This is also, coincidentally, how Bitcoin is issued and how issuance stays on a fixed supply schedule -- which is how the total supply of Bitcoin will remain fixed, forever.

While most people will be saving and spending in Bitcoin, very few will be involved in mining, and far fewer will be successful. Ultimately, the mechanism that guarantees final international settlement is a highly competitive (and adversarial) zero sum game.

For those foolish enough to play this game -- and for some it's more a matter of fate than want -- the only way to be successful is a combination of competence, luck, and by far the most important: a ridiculous work ethic.

“Always poor is he who works with an indolent hand, but the hand of the diligent brings wealth” (Proverbs 10:4)

If you're looking for passive income or an exciting investment opportunity, Bitcoin mining is most certainly not for you. However, if honest hard work is just your kind of game, well then -- welcome to the arena. Proof-of-work hashing is what gives Bitcoin its security, and what allows for final international settlement. And while it is adversarial and zero-sum, it is open to everybody. Anyone can attempt to find and propagate blocks. In fact, to truly gain your own financial sovereignty, then mining your own blocks guarantees you can settle your own on-chain transactions.

Sovereignty Levels

Before diving in and daring to test your fate in the Bitcoin mining arena, you may want to first understand the terms.