Bitcoin mining is an energy-intensive industry that requires a great amount of power and specialized computers to secure the Bitcoin network and get rewards in the token. Therefore, energy costs are one of the most important factors to determine how much a miner’s profit is.
To answer the question of whether Bitcoin mining is still profitable, use a web-based profitability calculator to run a cost-benefit analysis. Determine if you are willing to lay out the necessary initial capital for the hardware and estimate the future value of bitcoins as well as the level of difficulty.
The setup cost can vary depending on what you want to achieve. The price of one Bitcoin ASIC miner can cost between $6000-$25000 and the difference is in hash rate, functionality, efficiency and adaptability. Second hand markets can be ideal as an entry point. You can purchase second hand miners half of the price of a new one.
Bitcoin mining serves two purposes: It generates bitcoin. It confirms transactions on the cryptocurrency’s network and makes them trustworthy. At the end of the day, bitcoin mining is a business venture. Profits generated from its output—bitcoin—depend on the investment made into its inputs.
If you are new to mining and don’t know where to start, read our in-depth guide on equipment, investment, returns and sustainability of bitcoin mining. Emerging technologies in Bitcoin mining have driven its course towards renewable energy. Find out what is happening in the background.
Make sure to read our blog where we discuss the profitability of running a lightning node. Tips, tricks, scripts and all kinds of advice.