Skip to Content

How Much Money Can You Earn From Bitcoin Mining

How Much Money Can You Earn From Bitcoin Mining

by December 14, 2019 Guide

Bitcoin mining is simply creating new Bitcoins auch für Anfänger. This is the process that has to do with validating and updating each Bitcoin transaction in a blockchain while miners compete to get in first. Mining is usually performed with the use of supercomputers or also referred to as ASICs.

Miners would race against time and each other in the attempt to decode an algorithm. It’s frantically a survival of the fittest. Basically, the first miner to guess that number also updates the ledger of transactions and gets a reward for it. To date, the current reward is set at 12.5 Bitcoins.

If you are seriously looking into Bitcoin mining then you must check on the short- and long-term costs plus profitability. In order to earn BTC, you must have top-notch equipment, storage, and cooling. The odds should be in your favor to make this work to your advantage. Are the costs worth it after all? Let’s find out.

How Do You Make Money From Bitcoin Creation?

Your computer is basically a node in the networks in which job is to verify and confirm transactions. All Bitcoin transactions are recorded in an ever-expanding form of public ledger. Each transaction is processed by creating a recorded summary of transaction or “hashing” so that it can be added into the blockchain. This becomes irreversible at that point.

In 2013, the reward for every processed block was at 25 BTC which is equivalent to $2,500 at that time. In 2018, the reward for processing each block would create 12.5 BTC which is tagged at $75,000 considering current market price.

How Much Do Bitcoin Earners Make?

Well, the profitability would depend on several factors like the rig you use and also your operational costs.

Hash Rate

The hash rate would depend on your computer’s performance or the number of guesses that your computer can execute per second. The hash refers to an algorithm or mathematical problem that the computer would need to solve.

Reward per Block

Once a miner was able to guess a mathematical problem, a particular number of Bitcoins would be generated for each block. This started out at 50 BTC way back in 2009. Blocks produced are halved every four years. Currently, the number of BTC awarded per block is now at 12.5. The next halving is set in 2020.

Difficulty Level

This pertains to a number which shows the difficulty level of how hard it would be to mine Bitcoins considering the mining power or equipment used.

Electricity Costs

How much electricity do you spend with BTC mining? How many dollars exactly are you investing per kilowatt? You can check this on your monthly electricity bill. You actually spend electricity for powering up your equipment and also for cooling it down.

Power Consumption

Every equipment or computer would consume varied amounts of power. In order to calculate for profitability, you would need to have the exact numbers of your power consumption.

Mining Pool Costs

If you have joined a mining pool, then there is a service fee deducted from your earning. This would usually be around 2%.

Bitcoin Price

The Bitcoin price would largely depend on different factors like the buying and selling trend plus demand. It would also be hard to predict profitability especially because Bitcoin prices fluctuate a lot.

Difficuly Level Would Increase Annually

The more miners are included in the blockchain, the difficulty level would also increase. The challenge here is that there is really no way to tell how many joiners would be joining the network per month.

Once you are able to count in all factors, you can use the Bitcoin mining calculator to check on profitability or estimate of how much you can potentially earn each month. The numbers won’t really depict clarity of how much you will probably earn from BTC mining because some of the variables do not have exact numbers.

Given that you have invested in high-quality mining equipment or rig, profitability for short-term may still not have that lucky streak. However, with a bull run sometime in the future, this can turn the tables around for you especially if you are looking for long-term profitability.