Is Bitcoin Mining Profitable or Worth it in 2023?
The short answer is yes.
The long answer. . .it’s complicated.
Bitcoin mining began as a well paid hobby for early adopters who had the chance to earn 50 BTC every 10 minutes, mining from their bedrooms.
Successfully mining just one Bitcoin block, and holding onto it since 2010 would mean you have $450,000 worth of bitcoin in your wallet in 2020.
If you’re motivated to learn, and you want to get a semi-passive income of bitcoin, then there are a few basics to get your head around, before deciding if it’s even possible for you to profit from bitcoin mining.
Key Takeaways
- Bitcoin mining is still extremely profitable in 2022.
- Bitcoin miners are currently mining around $20 million worth of Bitcoin per day. That’s $600 million per month.
- A mining machine costs $2,000-$20,000, making it difficult for anyone but professional miners to mine.
Mining is the backbone of all proof-of-work blockchains and can be described with three key concepts:
➤ MORE: Bitcoin mining profit calculator
Bitcoin Block Reward
Miners are rewarded with 6.25 bitcoins. This number will reduce to 3.125 bitcoins after the halving in 2024. The reward (plus transaction fees) are paid to the miner who solved the puzzle first.
This process repeats approximately every 10 minutes for every mining machine on the network. The difficulty of the puzzle (Network Difficulty) adjusts every 2016 blocks (~14 days) to ensure that on average one machine will solve the puzzle in a 10 minute period.
Network difficulty is calculated by the amount of hashrate contributing to the Bitcoin network.
What is Mining Hardware?
Mining hardware is specialized computers, created solely for the purpose of mining bitcoins. The more powerful your hardware –and the more energy efficient– the more profitable it will be to mine bitcoins.