Everything You Need to Know About Mining Bitcoin: Q&A

Some of the most common questions we get asked are about the process of Bitcoin mining. If you’ve just discovered the magic of Bitcoin, you may be wondering yourself how you can get started mining and whether or not it is profitable.

Even if you aren’t interested in actually mining Bitcoin, we have answered a lot of commonly asked mining questions in this article—so keep reading!

Can You Mind Bitcoin as a Beginner?

While it is possible to mine Bitcoin as a beginner, it isn’t always recommended. This is for several reasons.

First and foremost, getting set up with the equipment needed to mine Bitcoin is expensive—so much so that most individuals give up once they see the initial price tag.

If that weren’t bad enough, mining also isn’t guaranteed. Of course, you will likely make something over the period you mine, but with halving events and the number of miners currently in the field vying for the fast dwindling rewards—we cannot promise you will recoup your initial investment.

The current reward for mining one Bitcoin block is 3.125 BTC, which if you do the math, this is quite some money, however, remember you may not win every block you attempt to mine. Bitcoin mining is expensive, consuming time and electricity, and for every block you do win, there will likely be several that you don’t win—meaning it is easy to outspend the cost to mine one block by the time you are able to.

This is one of the many reasons that Bitcoin mining has become more institutionalized, as businesses have found that the more machines you have, the more likely you are to win a block. These institutions have also positioned themselves in countries where power is cheaper, allowing their businesses to be more profitable. Sadly, this has made the barrier to entry for a single individual even higher than it was before.

As such, we don’t really recommend anyone to join Bitcoin mining as a sole proprietor right now—rather, we recommend that you consider mining a different cryptocurrency or joining a mining pool, where efforts and rewards are shared amongst multiple individuals.

How to Get Started With Mining Bitcoin

If you’ve come this far and still want to have a shot at mining Bitcoin, here is what you will need to get started. Before starting down this list, ensure you familiarize yourself with the process of mining to ensure you have all the information before you start spending money.

1.        Get a cryptocurrency wallet if you don’t already have one.

2.        Download mining software for the cryptocurrency you intend to mine.

3.        Build or buy a mining rig (around $5,000-$11,000).

4.        Configure your mining equipment.

5.        Start mining.

This list might make mining seem really easy, but it’s important to note that step 4 takes a lot of technological know-how, and if you don’t know much about Bitcoin mining already, you may need to join a pool in order to receive the technical support you need to get set up.

Can You Mine Bitcoin On a Laptop?

If you have a laptop with one of the latest and greatest graphics processing units, it is entirely possible to mine Bitcoin on your laptop. That being said, we don’t recommend it.

Mining Bitcoin on your laptop introduces you to a lot of risk—mostly that your laptop will overheat as a result of mining. As such, it could start a fire, or become damaged—neither of which are worth it for the small rewards you might receive from mining Bitcoin.

Not only that but your chances of winning a block reward mining on a single computer are miniscule at best, even if you run your laptop 24/7.  Rather, you will just run up your electricity bill to the point where you are losing money trying to mine. Instead, we recommend trying to mine a different, less difficult cryptocurrency, or joining a mining pool with a proper rig.

How Long Does it Take to Mine 1 Bitcoin?

A new BTC block is made every 10 minutes, meaning it takes just 10 minutes to mine one Bitcoin. But before you get dollar signs in your eyes, remember that while your computer will work toward mining a new block every 10 minutes, only one miner is paid for this work at the end of 10 minutes—and it’s the miner whose computer is the fastest.

Therefore, one individual operating on a laptop or home rig is unlikely to win a single block unless they join a mining pool—and even then, the rewards are paltry at best once split.

Is Bitcoin Mining Still Profitable?

Based on the current cost of graphics cards, electricity, and other equipment, Bitcoin mining is generally not profitable for the average individual, even if you join a mining pool. This is based on the estimate that with current rewards, the average miner in a mining pool only nets about $3.26 per day after the cost of electricity. If you do not join a mining pool, you will likely net even less.

Of course, if you live in a country where $3.26 is sufficient to live off of, then mining might be the way to go. But as of the writing of this article there are very few countries where that will be able to pay your rent and living costs. Not to mention, this net does not include the cost to replace the graphics cards as they wear out.

There are exceptions to this, obviously, as many companies do make more than this. But this is because they have a large number of machines constantly calculating to win that reward. This is an edge that the average individual or even a mining pool cannot overcome. Plus, another halving event is coming in four years, further lowering the mining rewards. Therefore, we don’t believe Bitcoin mining is a profitable endeavor to get involved in for the average individual.