What Is a "Miner"? | Cryptocurrency Glossary

Bitcoin Miners Are Becoming Massive Organizations

Bitcoin is designed so that when a miner successfully adds a new transaction to the blockchain, they are rewarded with newly issued Bitcoin.

To obtain cash, such as the Japanese yen, which circulates as legal tender, one must work and receive payment as compensation, provide goods or services in exchange for payment, rent out real estate, or manage assets.

In contrast, Bitcoin is designed so that you can receive it by successfully performing calculations using a computer. Many people are engrossed in this computational work—known as mining—and are fiercely competing to earn Bitcoin as a reward.

This competition for rewards has intensified, making it difficult for individuals to operate as miners on their own. Instead, operations now involve setting up hundreds or even thousands of computers with high-speed processing power, running them at full capacity around the clock. This requires enormous electricity costs and necessitates the implementation of systems to prevent the computers from overheating.

Consequently, it is not uncommon for miners to operate at the organizational level or through incorporated companies.
Moreover, since a successful mining operation can yield a large sum of money at once, businesses dedicated to this activity have also emerged.