Bitcoin is a very popular form of Cryptocurrency, released in 2009 by a person named Satoshi Nakamoto, although the same man denied the fact that he's the owner of Bitcoin, probably he doesn't want to pay taxes, or I may be wrong.
Possible questions in your mind:
- Can a person create Bitcoin on their own?
- Is it simple enough?
- Does it require money?
How To Create A Bitcoin?
A Bitcoin cost about 55k USD, but it doesn't mean that you need 55k USD to generate a Bitcoin, the cost to produce a Bitcoin may be more or less than it depending on the computer. Moreover, it may be possible that the Bitcoin created is in decimal points, i.e, a computer or miner can produce 0.002 BTC at a time or 2.02 BTC depending on how powerful is the PC or rig. More efficient mining equipment means lesser power require to produce bitcoin. So the real question is...
Creation of a Bitcoin:
The process of creating Bitcoin or any cryptocurrency is called Mining. Almost everyone has heard or read about Mining. It is a mathematical process carried out by specific components and to mine, you need an expensive gaming PC. An expensive gaming PC refers to a high-end gaming PC, think of RTX 2080 Ti paired with i7 9th gen, or even better for better mining performance.
Why creating a Bitcoin is too competitive and challenging?
Bitcoin is already a very well-known cryptocurrency as well as the oldest one. Due to the recent price roars of Bitcoin, it has acquired several people's attention and the Bitcoin network is larger than before. As there are comparatively more people in the Bitcoin network striving and grinding to mine Bitcoin, the competition has simply risen. Due to the high competition, the era where Bitcoin could be created by simply using a cell phone has vanished, and nowadays, even a simple home PC has to run for about a generation to mine a bitcoin, which is simply impossible. Moreover, the amount of Bitcoin that can be mined is fixed, even if the number of miners increases, making it harder and more competitive to
Even if we ignore the fact that the time taken to produce one bitcoin is too high for a simple PC, then the cost of electricity taken by the same PC could tackle the amount of money produced by mining bitcoin. So there's no profit in it.
For example;
Nvidia GPUs:
1. GTX 1650 paired with i3 -10300 can produce about 0.00002584 amount of Bitcoin per day (24hrs) produce, assuming the electricity cost per day is 0.018 USD, you make a profit of 1.29 USD in a day. Around 34 USD of profit in a month.
2. RTX 3090 paired with i9-10900k can create around 0.000201 amount of Bitcoin per day, which is about 10 times more than the above case. Let's assume the electricity bill is no more than 1 USD, the profit made in a day is around 10.5 USD, 343 USD per month.
AMD GPUs:
1. RX Vega-64 paired with i3-10300 as in the above case can mine around 0.00007 number of Bitcoin in a day, presuming the electricity consumed by it in a day is no more than 0.7 USD, the profit earned is 3.6 USD per day, about 121 USD per month.
2. RX 6900 XT 16GB coupled with i9-10900k can mine about 0.00015 Bitcoins per day, assuming the power consumption is equivalent to 0.8 USD per day, the profit earned in a day is roughly 5.7 USD. In a month, the profit earned is 183 USD.
Moreover, during mining, PC is required to work all day long. Which can possibly harm the GPU due to intense heat.
Amount of Bitcoin that can be produced:
Detail about Bitcoin Mining:
No high-level math or figure is involved. You may have heard that miners are solving challenging analytical puzzles—that's not precisely correct. What they're really doing is striving to be the first miner to come up with a 64-digit hexadecimal character(a "hash") that is smaller than or equivalent to the mark hash. It's fundamentally guesswork.
Legality:
The right of Bitcoin mining is entirely geographically dependent. The thought of Bitcoin can endanger the dominance of fiat currencies and government control over the economic markets. For this reason, Bitcoin is absolutely illegal in some places.
Risks:
The hazards of mining are often that of commercial risk and administrative ones.
As stated, Bitcoin mining, and mining in general, is a financial risk.
One could go through all the trouble of acquiring hundreds or thousands of dollars worth of mining gear only to have no return on their investment.