Bitcoin mining became one of the well-paid hobbies for early crypto adopters.
Miners had a chance to earn 50 Bitcoins every 10 minutes. Miners didn’t need more than a bedroom.
If you are motivated to earn an extra with bitcoin, mining could be a good option for it. However, there are basic steps to take before deciding if it’s a profitable plan.
Mining Reward
Mining is the backbone of all proof-of-work blockchains.
In 2022, miners obtain 6.25 bitcoins for their activity. Nevertheless, in 2024 the platform will reward them with 3.125 bitcoins.
The reward is paid to the miner who solves the puzzle first.
The mining process takes an average of 10 minutes for every machine on the network. The puzzle adjusts every 2016 blocks.
Hardware
The mining hardware is specialized for computers created only for the purpose of mining.
If your hardware is powerful, it will be more profitable. However, if more miners are seeking bitcoin, it will be harder to obtain a reward.
The individuals or entities with the best computer hashrate (computing power) will mine a higher quantity of bitcoin transactions.
More computer power means more solutions.
How to be profitable miner?
The revenue from mining has to be larger than the costs.
If you’d like to profit from Bitcoin, you might need to follow a certain path.
Efficient Hardware
As we spoke earlier, a piece of powerful equipment is needed for mining.
A Whatsminer M20S is an example of an efficient machine. The price of the hardware varies, and the more computing power the more Bitcoin mined.
Cheap electricity
Depending on the country and the state you live in electricity prices vary.
Running a Whatsminer M20S for one month will cost around $110 a month if your electricity is $0.045 in China.
Meanwhile, the typical home electricity price in the USA, of
$0.12 kWh.
Selling fees
Bitcoin prices are falling. The volatility of cryptocurrencies is increasing. Times are uncertain for crypto investors.
It is crucial to see the mining profitability in the fess to sell the Bitcoin obtained.
If you are a small-time miner, you may have to sell your coins on a retail exchange like Kraken or Binance.