Bitcoin mining requires specialized hardware, known as application-specific integrated circuits (ASICs), that are designed to perform the mathematical calculations required for mining as quickly and efficiently as possible. These ASICs consume a significant amount of electricity and generate heat, so miners often locate their operations in areas with cheap electricity and cool climates. In addition to the block reward, miners also receive transaction fees as an incentive to include a user’s transaction in their block. Transaction fees are paid by users as a way to prioritize their transactions and ensure that they are processed quickly. As the number of transactions on the network increases, so do the transaction fees, making mining even more profitable for miners.