Bitcoin has increased more than 5,000,000% in price between its early days and its all-time price high, but are most of its big gains already done compared to other crypto opportunities? One the other hand, Bitcoin mining difficulty took a second jump following the dip in mid-July as the mining ecosystem continues to turn back online.
As miners from China slowly settle down in crypto-friendly geographies, the Bitcoin ecosystem witnessed a 13.77% increase in mining difficulty in two consecutive jumps, exceeding 15 terahash (T) for the first time since the 2nd week of June. The next adjustment is expected to commence on August 27, estimated to surge the difficulty to 15.63 terahash.
Is Bitcoin Mining Profitable or Worth it in 2021?
The short answer is yes. The long answer… it’s complicated.
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 round, before working out if it’s even possible for you to profit from bitcoin mining.
Mining is the backbone of all proof-of-work blockchains and can be described with three key concepts:
- Efficient Hardware
The price of hardware varies from manufacturer to manufacturer and depends largely on how low the energy use is for the machine vs the amount of computing power it produces. The more computing power, the more bitcoin you will mine. The lower the energy consumption the lower your monthly costs.
2. Reliable Mining Pool
These days, every miner needs to mine through a mining pool. Whether you are mining with one machine, or several thousand, the network of Bitcoin mining machines is so large that your chances of regularly finding a block (and therefore earning the block reward and transaction fees) is very low.
BTC.come is the first pool which introduced Full Pay-per-Share (FPPS) Payout Settlement.
Share is the principal concept of the mining pool operation. Share is a potential block solution. So it may be a block solution, but it is not necessarily so. For example, suppose a block solution is a number that ends with 10 zeros and, a share may be a number with 5 zeros at the end. Sooner or later one of the shares will have not only 5, but 10 zeros at the end, and this will be the block solution.
Mining pools need shares to estimate the miner’s contribution to the work performed by the pool to find a block. There are numerous miner reward systems: PPS, PROP, PPLNS, PPLNT, and many more.
3. Cheap Electricity
Electricity prices vary from country to country. Many countries also charge a lower price for industrial electricity in order to encourage economic growth. This means that a mining farm in Russia will pay half as much for the electricity you would mining in most of Europe.
There is a shortage of low-cost electricity mining locations and power infrastructure in the market. There’s simply not enough infrastructure to absorb the demand coming from Chinese miners.
Profitability with $0.07 kWh electricity
In practical terms. Running a Whatsminer M30S++ for one month will cost around $171.9 a month if your electricity is $0.07 kWh in somewhere see from the table below that you would make $1130.7 a month in Aug 2021 with this electricity prices.
Overall
The average home miner is unlikely to recoup the cost of mining hardware and electricity. Profiting on your own is highly unlikely. The situation may improve in the future once ASIC mining hardware innovation reaches the point of diminishing returns. That, coupled with cheap, hopefully sustainable power solutions that retail customers can access in some shape or form, may once again make Bitcoin mining profitable to small individual miners around the world. If small miners can re-enter the network it greatly increases decentralization and supports the original intentions of Satoshi Nakamoto even further.
