Cryptocurrencies are created through a process called mining. Mining is how new units of a cryptocurrency are added to the circulating supply. It also serves as a mechanism to secure the network and validate transactions. Mining is a computationally intensive process that requires powerful hardware. miners compete to be the first to solve a cryptographic puzzle. The miner that solves the puzzle first is rewarded with a block of newly minted cryptocurrency. Miners incur costs in the form of electricity and hardware expenses. They also forego other opportunities to pursue mining. As such, they are motivated by the prospect of rewards. When Bitcoin was first created, anyone with a regular computer could mine it. However, as more people got involved, the puzzles became more difficult to solve. This required more powerful hardware, which in turn made it less accessible to the average person. These days, there are professional mining operations with warehouses full of specialized equipment. These companies have economies of scale and can generate a profit even when cryptocurrency prices are down.