Unfortunately, the days of making money mining Bitcoin using a desktop computer or GPU cards are long gone. Since the development of application-specific integrated circuits (ASICs), or machines intended only to solve Bitcoin’s mining proof-of-work algorithm and nothing else, the network’s overall processing (or “hashing”) power has increased rapidly.
Individual miners can still make money by buying their own ASIC-based equipment, but the majority of mining takes done in big factory-like facilities with hundreds of machines, in regions where energy is cheap (such as China and above the Arctic Circle). And, a few months after purchase, your machine’s capacity to compete on the network (and consequently its earning potential) is severely harmed, as is its resale value.
You must also consider the cost of energy in your area. Bitcoin-mining ASIC devices generate a lot of heat and use a lot of electricity. You’ll have to deduct your electricity and cooling bills from your profits.
- Bitcoin mining is the process of creating new bitcoin by solving a computational puzzle.
- Bitcoin mining is necessary to maintain the ledger of transactions upon which Bitcoin is based.
- Miners have become very sophisticated over the past several years, using complex machinery to speed up mining operations.
- Bitcoin mining has generated controversy because it is not considered environmentally friendly.