Do you want to mine Bitcoins but aren’t sure if it is still profitable? Is bitcoin mining still worth it?
Bitcoin mining is one of the most popular ways to get money from cryptocurrency. However, the process can be tough and expensive.
One has to invest in good mining rigs, take the time to learn the mining process, and consider a lot of factors like electricity to ensure profitability.
If Bitcoin mining is done right, yes it is still profitable. In the next section, I will discuss some of the things that might help you decide whether you should mine bitcoin or give it a pass.
- 1 Do Bitcoin Miners Make Money?
- 2 Is Bitcoin Mining Profitable In 2021?
- 3 How Bitcoin Mining Works and Why It Needs Proof of Work
- 4 How Long Does It Take To Mine 1 Bitcoin?
- 5 How Much Bitcoin Can You Mine In A Day
- 6 How To Know If You Can Profit From Bitcoin Mining
- 7 Is Bitcoin Fast Profit Legit?
- 8 Conclusion
Do Bitcoin Miners Make Money?
Bitcoin is a digital currency that operates free of any central control or over the sight of banks or governments.
Although the digital currency is not backed by central banks and the government, it is widely accepted worldwide and can be exchanged for traditional currencies.
More and more want to own and save bitcoin so they can sell it. Bitcoin mining is one of the ways to make a profit from cryptocurrency. However, the mining cost makes some wonder if the process is still profitable.
Individual miners make money from bitcoin mining because it is still profitable. Bitcoin mining is one of the most lucrative and innovative sectors in the global economy. According to data in April 2021, cryptocurrency mining has generated $3 billion in revenue, which means that crypto miners earned $100,000,000 in profit every day on average, Yahoo! Finance reported.
Five years ago, the average daily revenue of crypto mining was just around $1 million, but that has increased to almost 10,000%. Cryptocurrency mining is one of the most booming markets today.
However, one has to note that while it became extremely profitable, it has also become very competitive. One has to invest to make mining profitable.
For instance, one has to purchase mining rigs with impressive computing power and pay for the electric cost. Mining may take time and the difficulty will affect the Bitcoin you will receive as a reward.
“Bitcoin mining is starting to resemble similar industries as more money flows in and people start to suit up. With increased leverage, margins are lower across the whole sector. Soon, large-scale miners will be able to hedge their operations with financial tooling to lock in profits, whilst bringing in USD denominated investments like loans or for equity,” said Kristjan Mikselsson Managing Director of the Icelandic Blockchain Foundation.
Is Bitcoin Mining Profitable In 2021?
Is mining bitcoin worth it in 2021? This is the question I often hear lately.
Again, bitcoin mining is the process of earning bitcoins in exchange for running the verification process to validate bitcoin transactions.
These transactions provide security for the bitcoin network and compensate the miners by giving them bitcoins.
Is mining bitcoin still profitable? There are several factors that determine whether Bitcoin mining is profitable including electricity costs, availability and price of bitcoin, computer rigs and their computing power, and difficulty in providing the services. You have to know the cost of mining to determine its profitability.
The bitcoin mining difficulty is measured in the hashes per second of the bitcoin validation transaction and the hash rate measures the rate of solving the problem. But the difficulty changes as more miners join the pool. And when more miners join, the difficulty increases to ensure that the level is static.
Aside from that, bitcoin mining uses computing rigs which include expensive hardware. To know if the process is profitable, you have to consider the costs and difficulty and the price of bitcoin that you will be receiving as potential rewards.
So, is bitcoin mining profitable? In general, the revenue from mining outweighs the costs and the investment into mining hardware. Yes, bitcoin mining is still profitable even in 2021.
A profitability trend was observed in April by the miners when bitcoin was trading at nearly double its current level, according to Glassnode’s analysis.
Some Chinese miners have been selling their mining computers or rigs at discounted prices due to the competition in the business. However, the remaining miners continue to enjoy profitability boosts until the infrastructure catches up, according to industry experts.
The active bitcoin miners’ profitability doubled after a 28% downward difficulty adjustment in July, Nasdaq reported. The North American hash spread an index invented by digital asset financial services platform BitOoda to measure the difference between bitcoin mining revenue per megawatt-hour and the cost of the needed power and learned that it had almost doubled to $449 from $225 at the time.
“Mining economics have improved significantly,” Sam Doctor, chief strategy officer at BitOoda, wrote in a newsletter.
If you want to try mining bitcoin, don’t hesitate because it is still profitable.
“It’s become both easier and more profitable to mine bitcoin,” said Nick Spanos, co-founder of Zap Protocol, an infrastructure provider for decentralized apps. “That’s a recipe for enticing more miners back in.”
However, if you are an environmentalist, bitcoin mining or cryptocurrency mining might not be appealing to you due to its energy demands.
Although bitcoins are a digital currency, it requires huge energy. The bitcoin mining process alone uses too much power which is why electricity prices are critical factors.
Producing bitcoins generate between 22 and 22.9 million metric tons of carbon dioxide emissions a year which is between the levels produced by Jordan and Sri Lanka, according to a 2019 study in scientific journal Joule, NBC News reported.
Due to bitcoins carbon footprint, Elon Musk, Tesla and SpaceX CEO, decided not to accept bitcoin due to its energy demands.
In May, Musk released a statement about Tesla & Bitcoin on Twitter.
“Tesla has suspended vehicle purchase using Bitcoin. We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel,” the statement read.
“Cryptocurrency is a good idea on many levels and we believe it has a promising future, but this cannot come at a great cost to the environment. Tesla will not be selling any Bitcoin and we intend to use it for transactions as soon as mining transitions to more sustainable energy. We are also looking at other cryptocurrencies that use <1% of Bitcoin’s energy/transaction.”
How Bitcoin Mining Works and Why It Needs Proof of Work
Bitcoin is a permissionless, decentralized digital money technology that enables peer-to-peer value transfers without the use of a central middleman. It uses blockchain technology so the individual miners can confirm transactions without the need for a central clearing authority.
Blockchain technology is secure because it is decentralized and distributed. Without blockchain, bitcoin is useless. It also employs a proof of work (PoW) method, which is difficult, expensive, and time-consuming to implement yet simple to verify.
Bitcoin is now safe, and attacks on the network are impossible. PoW is required since it protects against fraud and promotes confidence. PoW is a technique for ensuring that transaction processors (miners) do not lie about it.
If there are numerous copies of the blockchain on the network, it is utilized to select the most legitimate copy. Furthermore, proof of work is essential for developing a distributed clock that permits the miners to enter and exit the bitcoin network at a steady rate.
Proof of work is also used to keep track of bitcoin transactions while making it more difficult to change the data over time. The history of transactions is maintained in a data structure known as the blockchain, which is made up of a series of blocks. The blocks, which are made up of transactions, are generated every 10 minutes.
Transactions are Bitcoin transfers from one account to another that is broadcast across the network. The miners (block producers) rank transactions within the blocks based on the optional charge a user includes as an incentive.
The larger the cost, the greater the chance that the transaction will be included. A mining node can be run by anyone. Each miner has a duplicate of the blockchain. Mining is the process of constructing a block.
Linking a block with the “proof of work” hash of its predecessors will make the block tamper-resistant because every block has an ingredient in the next block’s hash. Any changes in the chain will affect the final “proof of work” has and all the block hashes in between.
The deeper the altered block is, the more computation effort is required to tamper it. The chain’s final hash is similar to a checksum because it represents the entire chain’s cumulative work.
The hashcash system is used to produce blocks in Bitcoin. Miners make blocks by calculating the answer to a proof-of-work problem. They must find a specified hash that is less than a 256-bit value.
Hashcash generates a hash with a SHA256 algorithm that changes dramatically with any change in data. It’s impossible to get information from the output. The only method to solve this problem is through expensive guesswork or PoW that is why it is required in the process.
Miners use the list of transactions and a guess number (nonce) as inputs for the hashing function to guess the “proof of work” answer. Because miners are free to enter and exit the network, the difficulty is modified every 2,016 blocks to ensure that each miner has a reasonable chance of solving the block within the ten-minute time limit.
The verification process is decentralized over the entire network as a result of this. The protocol makes this change by increasing or decreasing the objective based on the number of miners.
The first miner to discover the “proof of work” answer broadcasts the solution to the rest of the network. All nodes will be alerted when a new block is discovered. They will double-check the answer before moving on to the next block. This effort is substantially redundant; all miners compete for a solution on the same set of transactions.
The block miner collects transaction fees and a block reward if the calculations are right. A block reward is a new bitcoin that is minted and credited to their account (currently 12.5 bitcoin).
You can also think of bitcoin block rewards as the new bitcoins given to cryptocurrency miners after solving a complex math problem and creating a new block of verified transactions. The competitive process forms the consensus mechanism that keeps all nodes on the same blockchain copy.
Only the longest chain (the one with the most “proof of work”) is considered valid and authentic by the protocol. A fake chain is impractical in the long run since a miner’s chances of continuously obtaining the block reward to keep the chain going are slim. Other miners will continue to extend the valid chain quicker than the tampered chain over time.
Although PoW is for mining security, it’s not perfect. Its consensus mechanism is environmentally taxing and if the miners take over the majority of the hashing power, they can manipulate it.
Also, there is no mechanism to reprimand malicious miners beyond the high cost of attempts. Moreover, it does not scale well since every node must process every transaction. Sharding the network might improve efficiency but at the expense of security.
How Long Does It Take To Mine 1 Bitcoin?
You cannot mine just one bitcoin. Crypto miners have to mine one block. At one point the reward was set at 6.25 BTC per block.
Each block usually takes 10 minutes to mine. So, in theory, it will take 10 minutes to mine 1 BTC and get a 6.25 BTC reward.
However, you should also know that while many have been enjoying a profitable mining experience, the process is not easy. In every block, there are thousands of bitcoin miners competing for the reward. And when there are more miners, the difficulty of mining increases. So, mining a block may require more computing power to solve.
The chances of mining a single block on one rig are very unlikely. So, many bitcoin miners opt to join a mining pool to combine their collective computing power and split the profits based on the proportion of power each miner brings.
The proportion of power or hash rate depends on the ASIC mining setup. To give you an overview of the mining pool, here’s an example.
Antminer S19 Pro, one of the most powerful ASIC rigs, has a hash rate of 110 TH/s. It makes up just 0.00088% of the F2Pool pool.
How Much Bitcoin Can You Mine In A Day
With each bitcoin block taking 10 minutes to mine, it is possible to mine 144 blocks each day. With the given rate and the bitcoin halving, 900 BTC is available in rewards every day.
F2Pool and Poolin are among the two largest mining pools and they are responsible for 14.23% and 12.60% of the total hash rate.
With 144 blocks mine each day, you will approximately make 128 BTC each day in F2Pool. But you have to note that the amount of BTC will be shared between its members.
How To Know If You Can Profit From Bitcoin Mining
As mentioned, Bitcoin mining has a lot of variables. If you want a simpler life, buying bitcoin from a crypto exchange is a simpler way to make profits.
However, when mining is done properly, you can make more money from it compared to hodling.
One of the most important variables for miners is the price of the Bitcoin itself — this impacts all miners. You also have to consider the mining hardware and electricity. You should earn enough Bitcoin to cover those expenses.
If you want to ensure a profitable mining experience you need these three factors — cheap electricity, low cost, and efficient hardware, and a good mining pool.
1. Efficient Hardware
Bitcoin mining is done in ASIC-specialized Bitcoin mining hardware that is housed in thermally-controlled data centers with access to cheap power. ASIC is very critical in the development of crypto mining after CPUs, GPUs, and FPGAs. ASIC miner is the most effective method to mine crypto.
The price of the hardware may depend on the manufacturer and on how low the energy is used for the machine vs the amount of computing power it produces. Take note, the more computing power, the more bitcoin you will, and the lower the energy consumption, the lower the monthly costs.
Yes, it’s difficult to find all of these things, but it is possible. So, if you are planning to buy a machine, you should make sure that it is profitable and durable. Do not just buy a machine that will not deliver. For instance, investing in old machines is not wise because they are no longer profitable.
“Profitability is determined by the machine’s price per TH, how many watts the machine uses per TH, and your hosting costs.
Longevity is determined by the production quality of the machine. It makes no sense to buy cheaper or seemingly more efficient machines if they break down after a few months of running,” said Tore Thornas, mining expert.
2. Cheap electricity
Electricity prices vary from one country to another and it’s a critical factor in mining bitcoin. Several countries charge low electricity prices and if you live in one of those countries, then you have an advantage.
For example, running your machine if the cost of electricity is $0.045 kWh like in China, Russia or Kazakhstan will only cost you $110 a month. However, if you are in the United States where the electricity price is at around $0.12 kWh, you are already at a loss from the start. It will not be reasonable for you to mine under the said condition.
Electricity prices are a huge factor in mining bitcoin because it contributes to the overall cost of mining on your end. If all of the bitcoin you mine only goes to paying for the energy consumption, then mining is not profitable for you.
3. Reliable mining pool
Not everyone can afford to buy their own mining rigs and pay for the mining expenses that include electricity. So, they join a mining pool, a network of Bitcoin mining machines that make the whole ordeal easier.
If you are mining with one machine or several thousand of mining rigs, you won’t still have it easy because the network of Bitcoin mining machines is so large that you will be having difficulty finding a block.
“If the Bitcoin Network Hashrate is 100 EH/s (100,000,000 TH/s), a WhatsMiner M20S ASIC miner with 68 TH/s, has approximately a 1 in 1,470,588 chance of mining a Bitcoin block. With one block per 10 mins they may have to wait 16 years to mine that one block,” said Thomas Heller Global Business Director at F2Pool.
Mining pools are an economic way to mine bitcoin and other cryptocurrencies. A mining pool is a collective of cryptocurrency miners — the miners join together and pool their computing power over a network to increase their chances of finding a block.
Think of it is as a group effort where you contribute a processing power for successful mining. If the pool is successful, the participants will be rewarded.
Mining pools are a great option to earn mining rewards for small operators regardless of the hardware you use. It’s also a great bitcoin mining strategy for beginners because mining pools are designed to be user-friendly. Individual miners benefit from mining pools and pools benefit from the miners’ hash rate.
Joining mining pools like Slush Pool and F2Pool are very helpful. It’s a great way to earn from bitcoin or cryptocurrency mining F2Pool, the largest Bitcoin mining pool supports around 20% of the entire Bitcoin network.
F2Pool uses the PPS+ payout method which takes away the risk from the miners. They pay out block rewards and transaction fees to miners regardless of whether the pool itself successfully mines each block. Here’s an overview of the calculation.
If the Bitcoin Network Hashrate is at 85 EH/s (85,000,000 TH/s), a WhatsMiner M20S ASIC miner with 68 TH/s, will earn around 0.000702 BTC per day before pool fees.
0.000702 BTC is calculated by 68 (miner hashrate) ÷ 85,000,000 (network hashrate) × 144 (number of blocks per day) × 6.25 (block reward).
Pool fees are normally 2.50–4.00%, so let’s use 2.50% for the example; the net mining revenue is therefore 0.00068445 BTC.
If BTC is priced at $9,000, then this M20S has a daily revenue of $6.16.
“Choosing the right mining pool is very important, as you will receive your mined bitcoin sent from the pool payouts every day. It’s important to choose a pool that is reliable, transparent, and offers the right suite of tools and services to help you optimize your mining operation,” Heller added.
4. Fees when selling Bitcoin
When mining bitcoin is successful and you decide to sell them to bitcoin users, you will likely incur fees during the sale. Depending on the fee structure of the exchange, it might be low or high. The fees usually depend on the fee structure of the exchange, state of the order book, and moment.
Professional miners have an edge because sales done with OTC desks have no fees. Some miners are even paid above the spot price for their coins.
Is Bitcoin Fast Profit Legit?
Most people buy bitcoin to make money. However, many fall prey to a false platform that only steals their money. For bitcoin traders, a good Bitcoin Fast Profit is essential. So what is a Bitcoin Fast Profit?
For those who are not aware of Bitcoin Fast Profit, it’s a software application that enables users to benefit from cryptocurrency volatility. Just like mining bitcoins, it allows one to make profits from cryptocurrency. Users can develop a trading algorithm and strategy which are automatically implemented on behalf of the user. This might be more environment-friendly than bitcoin mining because it is just an app.
The algorithm will evaluate the trend, price, market and statistics for choosing the best time to sell or buy your crypto assets like Bitcoin.
The British Bitcoin Profit is easy to use and it executes most of the tasks by itself. The system allows users to trade with stocks, Forex, and other raw materials available. Several said the said cryptocurrency system had helped them earn.
The system works like a bitcoin trader. All of the withdrawal requests are executed within 24 hours and deposited into the bank account provided. For security, it comes with a valuable SSL protocol that encrypts all documented user data to protects its service. Thus, the risk of hacking is almost impossible.
Is it legit? Yes, it is and it is a trusted auto trading platform that you can rely on to make money from the cryptocurrency market. The ratio of success for most of the traders is 96% according to the software’s analytics tool.
Also, it is licensed as an automated trading platform for cryptocurrency and managed by a team of professionals who are interested in helping people enjoy the profits in crypto trading.
The best thing about Bitcoin Fast Profit is that it allows even busy individuals who have one or more jobs to earn a passive income. It is also user-friendly and doesn’t require technical skills.
Many of those who had used the system attested that it worked for them. It gave them real profits, real results.
Bitcoin Fast Profit Features
The payout system on Bitcoin Fast Profit is fast and accurate. The system processes it as soon as the live trading session ends. It works well because there are no delays.
For security, all of the requests are only processed once they are verified. Also, the user information entered during the account opening or update is verified.
When you request to withdraw funds from Bitcoin Fast Profit accounts to a bank account are completed in 24 hours.
Most bitcoin exchanges come with service charges. But the good thing with Bitcoin Fast Profit is that it only takes a very small fee compared to other automated trading systems. The management team in charge only uses the service charge to maintain the auto trading platform.
Many people use Bitcoin Fast Profit and many of them freely share their experience. Through their testimonials, you will get to see and understand how efficient and effective the program is. Their testimonials are great sources for you to decide whether the program is worth it or not.
All investors on the platform can access the customer support system any time of the day and 24/7. Their customer support is knowledgeable, professional, fast and very helpful.
The brokers who have partnered with Bitcoin Fast Profit are always on the watch of the auto trading system to ensure that the investors will make a profit daily.
How Does Bitcoin Fast Profit Work?
The Bitcoin Fast Profit is a standard cryptocurrency trading system that does the job for you with an accuracy of 96%. It uses Artificial Intelligence (AI) for its mathematical algorithms that track data using technical and fundamental indicators to ensure authentic market analysis.
It also makes use of fresh data in the market that affects the cryptocurrency prices to assess trades. So, the users can enjoy guaranteed profit every time they use the platform.
It is also very convenient to use because it allows you to make deposits and withdrawals using a variety of methods, including eWallets, Debit/Credit cards and more.
To make money just register and very the account. Fund it with real money and start trading. The whole process does not involve any complicated process.
The Bitcoin Fast Profit collaborates with AI brokers for simple transactions and to leverage and manage deposits.
Why Use Bitcoin Fast Profit
Thousands of traders use the Bitcoin Fast Profit app because it offers several benefits that you will not find in other apps. Here are some of them.
Allows multiple cryptocurrency trading
The Bitcoin Profit platform allows users to trade different cryptocurrencies not just Bitcoin. Yes, you can also trade Ripple, Ethereum, Monero and more.
It is also very safe to use because it offers maximum privacy and security for its users’ data. The software is encrypted, so all information is protected and safely delivered. The Bitcoin Profit also ensures an adequate protection policy for its users’ passwords. Most cyber hacks start with a weak password and Bitcoin Fast Profit doesn’t make the step easy for the hackers.
For additional security, all users will be redirected to a broker where they are required to provide additional information to verify their identity. The regulators want to ensure that the users are legit, so the process will require a government ID and proof of address.
The principal aim of the KYC criteria is to avoid financial fraud, including money laundering. Bitcoin Profit’s AI brokers are organized and puts all customers through the ID verification system for security.
Easy to use
The system is beginner-friendly. So, even if you are a complete newbie, you won’t have a hard time navigating and using the system. Also, all transactions are completed within minutes, so it is very convenient to use.
High success score
All users stand a high chance of making profits from Bitcoin Fast Profit. The success rate of transactions done by the trading robots is very high. Also, the fast transactions and processing on the site are the reasons for its outstanding success.
If you have daytime jobs and want to earn extra income passively Bitcoin Fast Profit will make a good partner. You can use the auto trading platform without any special trading skills.
Why Is Bitcoin Fast Profit Profitable
There are a number of reasons Bitcoin Fast Profit is profitable
1. Speed and accuracy
Bitcoin Profits are efficient compared to manual crypto trading because it’s a software program that sells and purchases cryptocurrency faster than humans do. These two factors are important because time and speed are essential in the trading process because it helps reduce loss and at most times increase profit. Most trading platforms lack this, so they are liable to tolerate losses rather than profit.
The platform is very consistent because it is an automated system. All of its functions are steady and dependable. The robots run diverse transactions according to specific rules and it decreases the chances of emotional trading.
How to Open a New Bitcoin Fast Profit Account
1. Register an account
Download the account registration form. It will require you to enter some personal details, including your name, country of origin, email address, and phone number.
It will not take long to verify the account. You will be notified by email when the account is ready for use.
2. Make a Deposit
To proceed with the review, the account needs funding. You can do the minimum deposit to start the investment experience. You can deposit $250 with a Visa or MasterCard ban card. You can also use Neteller and PayPal.
3. Demo Trading on Bitcoin Fast Profit
A demo trading feature is available and it works well. The said feature will give the users a great overview of the whole Bitcoin Fast Profit process. It shows how auto trading robots work, so the demo trading feature can be used to explore the program without any risk of losing your money.
4. Live Trading
The first live trading session will last for hours. So, you should dedicate an ample amount of time when you trade. During my first trade, I had multiple sessions and made $880 in two days.
I guess the demo trading workedThe demo trading was very helpful because my first live trading was very smooth. Also, the withdrawal system was fast and the funds were cleared in 24 hours.
Mining bitcoins is still profitable today. Cryptocurrency mining makes billions in revenue and miners make millions of profit daily on average. However, you should take the time to know the process and invest in powerful mining rigs or use mining pools.
You can also use the Bitcoin Fast Profit app that offers you the same opportunity as mining — to earn from cryptocurrency passively. It doesn’t require as much cost and energy as mining, but it is as profitable. There is no doubt that bitcoin is profitable, but there are still risks as you will be dealing with a volatile market.
If you wish to learn more about bitcoin mining and other things about the bitcoin network, check our home page.