Bitcoin- The cryptocurrency that changed the way we see virtual currency forever. We hear several stories of poor people becoming rich after people mining Bitcoin (Yes, most of us regret not mining Bitcoin when it is easy to mine). Mining Bitcoins may now seem like a dream because mining them has become a tough job. No matter how impossible or complicated it sounds, one can still mine Bitcoins. But the question here is, “How long does it take to mine 1 Bitcoin?” Well, when it comes to Bitcoin mining, it is true to say that the whole mining process depends on several factors; however, if you keep trying, you should be able to mine Bitcoins. Let’s find out how:
Bitcoin- Introduction to Cryptocurrency
Bitcoin is a decentralized cryptocurrency or Digital currency launched by Satoshi Nakamoto, who invented it in 2009. The purpose behind the invention of this currency was to be able to use it as a currency to purchase services as well as goods. It is a currency that is not regulated by a central body, but is accepted as a mode of payment by several different retailers, companies and services.
Bitcoin mining refers to a process that uses a type of Digital or Electronic Ledger known as a “Blockchain.” Blockchain here refers to a technology where data is stored in blocks which are then linked together to form a chain.
How long does it take to mine 1 Bitcoin?
When we talk about mining, it is not referring to the actual mining process. In fact, it is a metaphor for translating the legitimacy of a transaction. In order to mine Bitcoins, you have to perform several tasks, such as finding, verifying, and validating transactions from a pool of unconfirmed transactions. These steps must be performed before adding them to the Bitcoin network. As a miner, you should focus on confirming these entries. But how do you do it? Well, that can be done by solving some of the math puzzles provided in the next section, where you can get a reward in the form of Bitcoins.
Mining Bitcoins cannot be done in a consistent flow because you have to mine them in blocks. Simply put, it’s a random process that’s more like a lottery than a construction project, as a minor working every 10 minutes generates a block that gives him more opportunities to mine new Bitcoins. However, the amount of Bitcoins a minor earned during his past work may vary per block.
If we put block subsidies that each miner earns per block, then that’s 6.25 new Bitcoins per block which should halve every four years. In addition, miners too charge a fee(revenue here is volatile) from every transaction they make on their block, which makes up a small portion of the overall block reward going to miners.
Overall, the huge variance, random nature, and other factors associated with Bitcoin make it difficult to predict how much time it will take a small miner when it comes to calculating it in a short amount of time. Block is tough in every way, but the payoff, namely Bitcoin, is profitable. So what can one do to speed up the mining process?
Mining with the help of Mining Pools:
In the race for understanding “How Long to mine 1 Bitcoin,” people have found a way to stay on top with the help of Mining Pools. What’s that? Well, since we know that income uncertainty is quite a problem with Bitcoin, to overcome this uncertainty, some miners join mining pools. In mining pools, computer power is collected, known as Hash Value of several mining operations. The rewards earned from these blocks are then distributed among the members of the mining pool. In simple words, it is more like a lottery pool where every member present in the mining process contributes to the process, and then each member receives a prize according to his contribution.
How much does it cost to mine 1 Bitcoin?
The cost of mining 1 Bitcoin depends on the equipment you buy. When it comes to Bitcoin mining, you may need to set up a Bitcoin mining setup, which may include the following:
- You will need to purchase a special computer known as an Application Specific Integrated Circuit, known as an ASIC Miner. This ASIC miner is designed to support and compete with specific cryptocurrencies.
- When it comes to mining setup, you need to make sure you always have an affordable and reliable energy supply and a reliable internet connection.
- Wherever you mine Bitcoins, you must ensure that it has a cooling infrastructure.
- The most important part of the setup is having the technical computer and software skills to establish and monitor the operations you need to carry out during the mining process.
If we combine the overall rates of all equipment together with electricity, then it costs to mine 1 Bitcoin maybe between $7000 to about $11000 USD. It is indeed a bit expensive, but if you look at the current Bitcoin price and it is still profitable to mine Bitcoins by investing that amount. One important thing we would like to mention here is that throughout the year, the entry price for miners has increased, and so have hardware prices or increased as well. So it is the fastest possible mining process.
Read also: bitcoin news
Now you know in detail how long does it take to mine 1 Bitcoin, You can definitely enter the mining race by getting the necessary equipment. But before that, keep in mind that there are several factors that determine the overall revenue of a Bitcoin mining operation, such as Hash Rate, Bitcoin difficulty adjustment, and revenue fees. It may take time, but with patience and constant effort, you can mine Bitcoins.
However, instead of carrying out solo mining operations, try joining a mining pool as this is known to be more beneficial to the mining process, and the chances of mining Bitcoins increase due to collective efforts.