Cryptocurrency Mining: How It Works, Who Does It, and Why It Matters

When you hear cryptocurrency mining, the process of validating transactions and adding them to a blockchain by solving complex mathematical puzzles. Also known as proof-of-work, it's the original engine behind Bitcoin and many early blockchains. Miners use powerful computers to compete for rewards, and whoever solves the puzzle first gets new coins and transaction fees. It’s not magic—it’s math, electricity, and hardware. But here’s the twist: not all blockchains use it anymore.

While Bitcoin mining, the energy-intensive process that secures the Bitcoin network by validating transactions through computational power. Also known as proof-of-work mining, it's still the most recognized form of crypto mining. dominates headlines, other systems like validator nodes, participants in proof-of-stake blockchains who secure the network by locking up (staking) their own cryptocurrency instead of using computing power. Also known as stakers, they're replacing miners on networks like Ethereum and Solana. are taking over. Why? Because mining eats massive amounts of power. Countries like Iran use cheap electricity to run large mining farms, not just to make money, but to bypass financial sanctions. Meanwhile, places with strict energy rules or high costs are switching to staking—where your coins do the work instead of your machines.

What’s left for miners today? Not much. Bitcoin mining is now dominated by big players with access to cheap power and bulk hardware. Small-scale miners struggle to break even. And while some new coins still rely on mining, most new projects avoid it entirely. The real shift isn’t just technical—it’s economic and political. Mining isn’t dead, but it’s no longer the default. If you’re thinking about getting into it, ask yourself: are you chasing coins, or are you chasing outdated tech?

Below, you’ll find real stories from the front lines: how Iran turned mining into a sanctions-busting tool, why some tokens claim to be mining-related but are just scams, and what happens when miners disappear from a network. These aren’t theory pieces—they’re case studies from people who’ve seen the rise, the crash, and the quiet fade-out of crypto mining as we knew it.