Bitcoin is becoming more widely accepted and this means that more and more people are interested in mining this cryptocurrency. Lately, it has become so popular that there is already bitcoin mining hardware hosting for it. It has gone to a different scale than when you could mine bitcoin on a CPU sitting at home. But in a volatile market, some people wonder if they are too late.
So before you buy equipment, read this article. In it, we will tackle an important question as to how much you can earn by mining bitcoin in 2022. The truth is that your success in bitcoin mining depends on many different factors. But if you do your research, you have a good chance of making a solid income.
What is Bitcoin?
Surely, if you are wondering how much you can earn from bitcoin mining, you are new to this field. So we’re going to spend a little bit of time on this question, and we’re going to find out what mining is.
Bitcoin is a global payment system and the first decentralized virtual currency that offers fast, cheap, and private payments. Bitcoin was developed and launched as an open-source protocol based on an official document written by Satoshi Nakamoto. Since its release, bitcoin has become the most well-known, established, and leading cryptocurrency in the industry, inspiring the creation of other digital currencies – altcoins.
The division of bitcoin into two components introduces some confusion.
Bitcoin with a capital letter is a decentralized peer-to-peer network that enables transactions between people without a third party. The Bitcoin protocol is publicly available and developers can review the code and easily adapt open-source software and redesign it for their needs.
Bitcoin with a small ‘b’ is a coin that operates on the Bitcoin network. The coin can be thought of as a currency for the internet as well as the dollar or euro currencies for the US and Europe. Bitcoin-the-coin is the first cryptocurrency, also known as virtual currency and BTC is its acronym.
As you may have guessed, one of the ways to mine this currency is mining, let’s also spend some time on it.
What is Mining
Mining is the process of producing cryptocurrency, virtual money, the issue of which is not regulated by anyone. The process works thanks to blockchain technology – a chain of blocks, each of which stores information about a separate transaction. Blockchain performance depends directly on the processing power of the computers connected to the process.
At the moment we can distinguish the following ways of mining:
- Cloud mining
- Solo mining
- Mining Pool
Main Nuances of Bitcoin Mining
You should be aware of the fact that bitcoin has very high volatility. That is why its price can change every day. Today it can go up in price by a few thousand dollars, but in a couple of days the price will be completely different. So we can’t afford to make some calculations, name an amount at the end and say that you’ll get rich, and tomorrow the numbers will be completely different.
Instead, we will give you hints and introduce you to the business, but at the same time answer the main question of this article.
If you want to make a decent profit in this business, then we advise you to use ASICs. As practice shows, video cards can still be used for efficient mining, but they are no match for specialized equipment. In general, the amount you will earn will depend on your equipment and the cost of electricity where you live, but ASIC miners are still the best option to succeed in bitcoin mining.
Which Way is Better
You should be aware of the fact that to start would have to invest a lot of money to make a decent income. Therefore, the question immediately arises, what method of mining cryptocurrency is worth choosing? Considering that home mining has practically outlived its usefulness, we suggest you use cloud mining or to use a hosting service.
As for cloud mining, in this case, you simply rent a hash rate, in other words, computing power. Then you just get the profit immediately to your cryptocurrency wallet. This is one of the most convenient ways.
If you prefer to use the services of a mining hosting, then the situation is a little different. In this case, you place your equipment in a certain place, where it will be monitored by specially trained people. This way, you get rid of a lot of problems. For example, on the hosting is always cheap electricity, equipment insurance and, of course, people who control everything. But as we said earlier, the profit will depend on the computing power, the more and better equipment, the correspondingly larger the profit will be.
Here is an example of the use of a single ASIC. With a hash rate of 100 TH/s at a power consumption of 3,400 watts, the Whatsminer M30S+ can mine about $430/month profit with a low power price of $0.06/kWh. And when there are 5 or 10 of these running, the profits multiply.
As you can understand, the question of exactly how much you can earn by mining bitcoin, there is no exact answer. Ultimately, there are many variables to consider when deciding whether or not to mine bitcoin and how to do so profitably. But if you are wondering if you can make good money mining, the answer is unequivocal yes. Of course, your income will depend on the amount and power of your equipment, but it will be. It is safe to say that bitcoin mining is one of the most profitable options for earning today.