Bitcoin Mining At Home: Is It Still Worth It?

Miners are basically auditors of the network; relying on their computing power, they verify transactions to make sure that no one spends the same Bitcoin twice. The first one to verify a block (1 MB) gets the juicy BTC. Technically, it’s 50% processing power and 50% luck, but if you have more power compared to other miners, then your chances to get the reward increase.

However, we need to consider some variables that are often overlooked. The first one is that the rewards for mining bitcoin are halved once in four years. In 2009, mining a new block would have earned you 50 BTC, while in November 2020 it is 6.24 BTC. The second is that Bitcoin adjusts the difficulty of mining once in every 2.016 blocks. As more people with more processing powers join the network, the calculations become more complex – so the miners have to keep upgrading their farms to make sure they keep up with the competition.

Several factors will determine whether setting up your own farm will be a rewarding venture. For one, it’s the cost of electricity you will need to power and cool it. It’s the price of the modern rigs, powerful enough to keep you competitive. And, lastly, it’s maintenance and upgrades. The idea is simple: if you earn enough BTC to cover the initial investment and running costs, and get a profit – then you’ll be a happy miner.

So is mining Bitcoin at home still worth it? To get a proper answer to that, we need to do a cost-benefit analysis. Luckily, there are online calculators to check the profitability of crypto mining. All you have to do is set out what you are willing to pay as initial capital, forecast the future value of bitcoins, and define the level of difficulty – and you’ll find the breakeven point for different scenarios.

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