Bitcoin- a Cryptocurrency that changed the way we saw virtual currency forever. We heard several rags-to-riches stories after people mined Bitcoin ( Yes, most of us regretted not mining Bitcoin when it was easy to mine). Mining Bitcoin now may seem only a dream as mining it has become a difficult job. No matter how impossible or complex it may sound, one can still mine Bitcoin. But the question here is, “How long does it take to mine 1 Bitcoin?” Well, when it comes to mining Bitcoin, it is right to say that the overall process of mining depends on several factors; however, if you constantly put in an effort, then you can surely mine Bitcoin. Let’s find out how:
Bitcoin- An introduction to the Cryptocurrency
Bitcoin is of decentralized cryptocurrency or Digital currency that was launched by Satoshi Nakamoto, who invented it in the year 2009. The purpose behind inventing the currency was to be able to use it as a currency to buy services as well as goods. It is a currency not regulated by a Central governing body, yet it is accepted as a mode of payment by several retailers, establishments, and different services.
Bitcoin mining refers to a process utilizing a type of Digital or Electronic Ledger known as a “Blockchain.” A Blockchain here refers to a technology in which data is stored in blocks which are later linked together to form a chain.
How Long would it take to mine 1 Bitcoin?
When we talk about mining, it doesn’t refer to the actual mining process. It is, in fact, a metaphor for translating the validity of a transaction. To mine a Bitcoin, you must perform several tasks, such as searching, verifying, and validating the transactions from a pool of unconfirmed deals. These steps must be done before adding these to the network of Bitcoin. As a miner, you need to focus on confirming these entries. But how do you do that? Well, it can be done by solving some mathematical puzzles provided in the succeeding section, through which you can get rewarded with Bitcoins.
It is not Consistent:
Mining a Bitcoin cannot be done in a consistent stream as it requires you to mine it in blocks. To put it in simple terms, it is a random process more like a lottery than a construction project, as the minor who works every 10 minutes produces a block which gives him some more chances to mine a new Bitcoin. However, the amount of Bitcoin that is earned by a minor during his past work may vary in every block.
If we put the Block Subsidy that every miner produces per block, then it is 6.25 new Bitcoin per block which is supposed to decrease by half every four years. Apart from that, miners also collect fees( the revenue here is volatile) from every transaction they make in their block, which makes a small portion of the overall block reward given to the miner.
Overall the very variance, random nature, and other factors related to Bitcoin make it difficult to predict how much time it might take for small miners when it comes to calculate it in a short period of time. The blocks are difficult in every sense, but the outcome, i.e., Bitcoin, is lucrative. So what can one do to speed up the mining process?
Mining with the help of Mining Pools:
In the race to understand “How Long to mine 1 Bitcoin,” people have found a way to stay ahead with the help of Mining Pools. What is it? Well, since we know that uncertainty in revenue is quite an issue with Bitcoin, to overcome this uncertainty, several miners join mining pools. In mining pools, computer power is aggregated, known as the Hash Rate of several mining operations. The rewards that are earned from these blocks are then distributed to the mining pool members. In simple words, it is more like a lottery pool where every member that is present in the mining process contributes to the process, and then every member receives a reward per their contributions.
How much does it cost to mine 1 Bitcoin?
The cost to mine 1 Bitcoin depends on the equipment you buy. When it comes to mining a Bitcoin, you may require to put together a Bitcoin mining setup, which may include the following:
- You need to buy a specialized computer known as the Application-specific Integrated Circuit, known as ASIC Miner. These ASIC Miners are designed to support and compete with a specific cryptocurrency.
- When it comes to mining setups, you need to make sure you always have an affordable and reliable energy supply and a reliable internet connection.
- No matter where you are mining Bitcoin, you must ensure that the place has a cooling infrastructure.
- The most important part of the setup is to have technical computer and software skills to establish and monitor the operations you need to run during the mining process.
If we put together the overall rate of all the equipments along with the electricity, then the cost to mine 1 Bitcoin maybe somewhere between $7000 to about $11000 USD. It is a bit costly, but if you look at the current Bitcoin price and it is still profitable to mine Bitcoin by investing such an amount. One notable thing that we would like to mention here is that over the year, the entry price for miners has increased, and also the prices of hardware or has also increased. So it is a mining process as soon as one can.
Read also: bitcoin news
Now that you know in detail how long does it take to mine 1 Bitcoin, you can definitely join the race of mining it by getting the required equipments. But before that, keep in mind that there are some factors that determine the overall revenue of Bitcoin mining operations, such as the Hash Rate, Bitcoin’s difficulty adjustment, and revenue fees. It may take some time, but with patience and constant effort, you can mine Bitcoin.
However, instead of going for solo mining operations, try joining mining pools as these are known to be more beneficial for the mining process, and the chances of mining a Bitcoin increase due to the collective efforts.