Bitcoin mining is a process that helps manage the Bitcoin network, secure transactions, and create new bitcoins. Miners use powerful computers to solve complex mathematical puzzles, which verify and record Bitcoin transactions in a public ledger called the blockchain. Each time a miner solves a puzzle, they create a new 'block' and add it to the blockchain. To sum up, mining is essential to the Bitcoin network for two main reasons: firstly, it ensures transaction security by verifying and recording transactions, and secondly, it's the method through which new bitcoins are introduced into the system, acting as an incentive for miners to continue participating in the network. However, it's worth noting that the mining process consumes a significant amount of energy, raising concerns about its environmental impact.
You are an economist who specializes in cryptocurrencies. Explain the concept of Bitcoin mining and why it is essential for the Bitcoin network.