Bitcoin Mining Profitability in 2021ĭon't expect to make a business out of mining just by downloading some software. Regardless of your reason, this guide will walk you through the entire process. Whether you're mining to make money, starting a new hobby, or simply contributing to Bitcoin’s decentralization, mining is not easy. By mining, you're contributing to Bitcoin’s decentralization - the core tenant that makes BTC revolutionary. There is also a more noble reason to mine, even on a small scale. As we will get into later, there are so many variables in any mining operation that make for a fun challenge. If you mine your BTC directly, it’s not tied to your identity.īesides that, another reason to get into cryptocurrency mining is as a hobby if you are engineering-minded or simply want to better understand this important aspect of Bitcoin. This leaves you susceptible to tax liabilities, confiscation of your Bitcoin if it’s stored by a custodial service, and being blocked from using other regulated services. Why is that important? Well, purchasing cryptocurrencies through an exchange typically requires that you reveal your identity due to Know Your Customer regulations. That being said, the industry is incredibly competitive, and slicing out your piece of the revenue will be difficult.īut did you know there are other benefits to mining?įor one thing, mining enables people to acquire KYC-free crypto. At the time of writing this article, the daily revenue earned by miners is over $18.8 million, totaling up to about $6.87 billion annually. This is effectively similar to purchasing Bitcoin at 25% below the market price.Īnd certainly there is money to be made in this industry. In other words, if the current Bitcoin price is $20,000 and you can mine 1 Bitcoin for a total cost of $15,000, then you have a 25% profit margin.
Simply put, if your cost to mine 1 BTC is lower than the current BTC price, then mining allows you to accumulate BTC at a discount. Profit is the biggest motivation to get into mining. If you’re looking to mine at home to make some money or just as a hobby, we’ll tell you everything you need to know so you can start mining Bitcoin as soon as possible. This guide is for anyone who is completely new to mining. Mining Bitcoin and other cryptocurrencies is not a simple task.Ĭompetition in the mining industry is fierce and many variables need to be considered when selecting mining rigs and setting up your facility.