In the midst of the digital currency revolution that is experiencing ups and downs according to the fluctuations of global economic and political markets, an important question arises, which is how these currencies can be mined, and how much profits can be obtained from this process?
First of all, we need to know that the miner gets 6.25 BTC reward. This number is likely to shrink to 3.125 BTC after the so-called Halving by 2024. The Bitcoin miner who solves the puzzle first gets the reward plus transaction fees.
The process of mining Bitcoin can be repeated once every ten minutes for each miner on the Bitcoin network. And periodically, the difficulty of the network puzzle is adjusted approximately every fourteen days, so that the goal of this adjustment is to ensure that one machine (on average) can solve the puzzle within a period of ten minutes.
The difficulty of the puzzle is calculated by the amount and number of hashtags that contribute to the Bitcoin network.
How to Calculate Bitcoin Mining Profits
For bitcoin mining to be profitable, bitcoin mining profits and revenues must exceed mining costs. What is meant by the costs of bitcoin mining here is the energy consumed to do mining, in addition to the real investment in mining hardware, far from the media and their exaggerated effects through the fictional and terrifying stories they circulate about energy consumption in the bitcoin mining process.
We can consider the group of miners as “Paypal” but in a decentralized way. Through it, all transactions can be accurately recorded and money can be obtained in return for operating the system.
Miners earn bitcoin by collecting mining block rewards on top of what bitcoin users pay to miners for helping them securely record bitcoin transactions on the blockchain.
And if we do some kind of comparison between the profits of mining a particular digital currency, the Dogecoin would be hypothetically. Dogecoin mining is done through large mining pools that include thousands of miners and are subscribed to on a monthly basis.
Moreover, you have to pay the subscription fee first and the mining energy secondly. On the other hand, Bitcoin mining is different from it, which creates a clear difference in both profits and costs.
The commission imposed on the sale of bitcoin metal Sometimes those who work in mining for a short time are forced to sell their digital currency on a digital trading platform such as Binance and CoinEx, and the amount of fees that should be charged from miners varies from time to time. Exchange fee The other thing is the demand for the currency at the moment.
So we find that sometimes the fees paid by the miner to sell bitcoin after mining are high and other times we find small and simple fees.
As for the miners who have a lot of experience and professionalism in the field of bitcoin mining, they have a great opportunity to make big profits. And successful deals with some digital platforms that allow buying with special offers and reasonable prices.
Bitcoin mining hardware cutting prices
It is both natural and beneficial to think that your device will continue to profit from bitcoin mining for as long as possible. It may take up to several years, and in order to achieve this, of course, your device must be modern. As most modern devices can still be profitable with the price of bitcoin, up to five or six thousand dollars.
There are some machines that can be powered by electricity and that cost less than five percent of a US dollar per hour, and it is worth noting here that most of the old machines are no longer able to make a profit.
Even in China, which is the world’s number one bitcoin mining country. Although these devices are still used in other less developed countries. Such as Venezuela, for example, as well as in Iran, and the reason is due to the cheapness of electricity in such countries.
So the only hope and the best solution for miners to increase their profits and earnings is to obtain cheap electricity, and this is not possible unless it is taken from environmentally friendly and cheap sources such as solar energy and wind energy, where its cost becomes less than 2 cents. Thus, the field becomes open for miners to compete and obtain greater gains. .