Mining is a process in which a computer with a superior rig verifies each transaction. This ensures a secured ledger system and maintains authentic transactions. Although the primary purpose of mining is to maintain the authenticity of the ledger system, by this way, new bitcoins arrive in circulation. Bitcoin mining may sound more like obtaining Bitcoins, but now we know the primary purpose of mining.
Is Bitcoin Mining Worth It?
Bitcoin Mining in 2009 vs Bitcoin mining in 2021:
Bitcoin mining was relatively easier at the time of its launch. One can mine a bitcoin using their smartphone. Currently, Bitcoin mining is a tough task. You need a high-end gaming PC to mine a fraction of a Bitcoin in a week.
During the 2010s, the possibility to mine 1 Bitcoin was a rock-solid 1, right now, the chance to mine a Bitcoin is 1 in 17 trillion (on the scale of difficulty level) with the same computer used in the 2010s. One could easily mine about a hundred Bitcoins a day in 2009-10, whereas, currently, not even a solid one Bitcoin can be mined in a day even with the help of a super high-end gaming PC paired with more than 5 GPUs.
A fraction of a Bitcoin is what you can mine using your high-end PC. You may ask why it is so difficult to mine a Bitcoin? Because there are more than a million bitcoin miners operating right now. At that time, the total number of Bitcoin miners was relatively very less in the Bitcoin network that made it possible to mine a hundred bitcoins a day.
Bitcoin mining reward in 2009 vs in 2021:
Bitcoin miners were rewarded 50 BTC as a block reward at the time of its launch, although the value of Bitcoin at that time was almost equal to 0. After the bitcoin halving in 2020, the block reward per mining a Bitcoin is 6.25 BTC.
You may ask that the price of 6.25 BTC is roughly 35k USD, that amount is good bruh? but read the next para to know the cost required to mine a Bitcoin. The halving will continue till the total supply of Bitcoin surpasses 21 million, possibly in 2140.
Cost to mine a Bitcoin in 2009 vs in 2021:
Okay, so 6.25 BTC as a Bitcoin reward is a good sum, but you need to give a decent input in order to mine a Bitcoin. In 2009, miners could produce 50 BTC on clearing a block with a simple multi-core processor like Intel Core Duo 2.
Yeah, it was as easy as that.
Things have changed a lot in a mere 10 years. Right now, to mine a Bitcoin, you need more than 10 RTX 3080 to earn some profits. Suppose you are a Richie rich who can afford to purchase seventy-eight RTX 3080, all of them coupled up for mining. The profit after cutting the electricity bill, you'll make about 18k USD a month considering electricity cost as 0.1 USD per kilowatt.
Is Bitcoin Mining Worth It?
Bitcoin mining is worth it under these factors:
- If you have a high-end PC.
- If you can afford to buy another component when the old part overheats.
- If you don't mind your PC running 24/7.
- If you are well aware of the risk of loss.
- If you know that Bitcoin mining is preferably easy for big players in mining industries around the world.
- If you know about Bitcoin Mining malware that can harm the performance.
- If you don't mind the C02 emission, harming the environment.
Let's arrive at the conclusion, whether Bitcoin mining is worth it or not. You want to mine Bitcoin to earn profits, in the case of profit, I can say you can make a good amount of profit if you can purchase a powerful PC or mining hardware.
Keep in mind, PC with a single RTX 3080 is not as profitable as pairing it with a few more GPUs. As well as your PC is going to run 24/7, can probably catch fire if not ventilated properly.
Graphic cards such as iBeLink DM22G aren't compatible with mining purposes. They aren't for profit, you will face a loss of around 40 USD a month, which means you would be simply wasting your money if you try to use this GPU.
Although bitcoin mining is certainly a game for big industries around the world, an individual should know about where he's going to invest his money.