Bitcoin mining is the process by which new bitcoins are created and transactions are verified on the Bitcoin network. In 2021, Bitcoin mining platforms became more sophisticated and competitive. Here’s an explanation of the Bitcoin mining platform as it existed in 2021:

Figure 1. Inside the World of Bitcoin Mining Platforms.

What Is a Bitcoin Mining Platform?

A Bitcoin mining platform in 2021 refers to the combination of hardware and software systems used by miners to participate in the Bitcoin network. These platforms are responsible for solving complex cryptographic puzzles to secure the network and earn bitcoin rewards. Figure 1 shows Inside the World of Bitcoin Mining Platforms.

Key components:

• Hardware: ASIC miners (Application-Specific Integrated Circuits)
• Software: Mining software like CGMiner, BFGMiner, NiceHash
• Mining Pools: Platforms where miners combine their computational power for better chances at rewards

What Is Bitcoin Mining?

Bitcoin mining is the process of verifying transactions and adding them to the public ledger called the blockchain. Miners use powerful computers to solve complex mathematical problems. The first to solve it gets to add a new block and earn newly minted bitcoins as a reward.

• Maintains the security and integrity of the network.
• Uses Proof of Work (PoW) mechanism.
• Incentivizes miners with bitcoin rewards and transaction fees.

Mining Hardware Platforms in 2021

In 2021, specialized devices known as ASICs (Application-Specific Integrated Circuits) dominated the mining world due to their high efficiency.

Popular Mining Hardware:

• Antminer S19 Pro (by Bitmain)
• Whatsminer M30S++ (by MicroBT)
• Custom-built rigs using multiple ASICs in parallel

These platforms required:

• High power supply
• Advanced cooling systems
• Stable internet connection

China’s Mining Ban:

• In mid-2021, China banned Bitcoin mining due to energy concerns and financial regulations.
• Resulted in a massive migration of miners to the U.S., Kazakhstan, Russia, and other countries.
• PayPal enabled crypto payments.
• Caused a temporary drop in the Bitcoin network hashrate.

Rise of the U.S

• The U.S. became the new mining hub.
• Texas and Wyoming offered cheap electricity and crypto-friendly regulations.
• Mining companies emphasized using renewable energy sources.

Profitability, Sustainability & the Future

• Highly profitable during Bitcoin price peaks (reached ~$69,000 in Nov 2021).
• Depended on electricity costs, hardware efficiency, and mining difficulty.
• Many miners used profit calculators (like NiceHash tools) to estimate returns.

• Criticism of high energy use led to a shift toward green mining.
• Platforms began focusing on solar, wind, and hydro-based power.
• More decentralized mining
• Push for eco-friendly mining solutions
• Continued growth in North America and Europe

Reference:

1. https://www.vaneck.com/us/en/blogs/digital-assets/the-top-10-best-no-jargon-bitcoin-blogs-and-podcasts/bitcoin-mining-and-esg-april-2021.pdf/

Cite this article:

Nandhinidwaraka S (2021), The Platform of Bitcoin Mining, AnaTechMaz, pp. 45