Is Bitcoin Mining Profitable in 2023? How Much You Can Make Mining Bitcoin

Bitcoin mining allows you to earn newly minted BTC tokens – which are released into circulation every 10 minutes. But that begs the question – Is Bitcoin mining profitable?

In this guide, we explore the profitability of Bitcoin mining in 2023. We examine the key factors to consider, including mining difficulty, hashing power, electricity consumption, hardware costs, and much more. Read on to determine if Bitcoin mining is right for you.

What is Bitcoin Mining?

Bitcoin is a decentralized network that doesn’t rely on third parties to verify transactions. Instead, transactions are secured and confirmed by Bitcoin miners. The consensus mechanism used by Bitcoin is proof-of-work (PoW). Every 10 minutes, the PoW system confirms a new block of transactions. Before the transactions can be marked as legitimate, they must be verified by miners.

The miner that is successful in verifying the 10-minute block will earn newly minted Bitcoin. This currently stands at 6.25 BTC. In order to verify a mining block, the miner must solve a cryptographic equation. However, this equation is too complex for a human to solve, so miners use specialist hardware equipment. Many miners will attempt to solve the equation at the same time – the first one to do so wins the block reward.

Based on current BTC/USD prices, the 6.25 BTC mining reward is valued at over $162,500. Therefore, a significant number of miners are competing to win this reward every 10 minutes. This means that Bitcoin mining is very competitive. In fact, Bitcoin mining is often considered an ‘arms race’, as those with the most powerful devices have the best chance of success. This means that an upfront investment is required before you can begin mining Bitcoin.

In addition, there are ongoing costs to consider. Due to the complexity of the cryptographic equation that needs to be solved, a significant amount of computation power is required. In simple terms, this means that Bitcoin mining consumes vast energy sources. As such, electricity costs need to be factored in when asking the question – Is Bitcoin mining profitable?

• Fortunately, there are ways to mine Bitcoin without buying hardware or consuming energy.
• This includes cloud mining, which enables you to mine Bitcoin remotely.
• Cloud mining allows you to purchase hashing power from an established mining farm.
• After fees, you’ll receive a proportionate share of the mining rewards.

Alternatively, if you prefer mining at home but you’re on a budget, you might consider other cryptocurrencies. As the competition will be smaller, you can often mine altcoins with basic hardware devices and without spending huge sums on electricity.

How Does Bitcoin Mining Work?

Bitcoin mining is a complex niche that requires an upfront investment. Therefore, you should understand how Bitcoin mining works before proceeding.

In this section, we expand on the basics. This will enable you to answer the question – Is Bitcoin mining profitable in 2023?

Proof-of-Work 

Cryptocurrencies like Bitcoin are decentralized, meaning that the network isn’t controlled by any single person or entity. This is in contrast to traditional payment systems.

For example:

• Consider the process when transferring money to another person.
• Irrespective of whether you’re using a bank, an e-wallet, or a money transfer company – you’re relying on centralized third parties.
• This means the recipient will only receive the money after it’s been confirmed by the respective payment provider.

Bitcoin is able to verify and process transactions without relying on an intermediary. This is because of its consensus mechanism – proof-of-work (PoW).

PoW uses cryptography to remain decentralized and secure. To verify a transaction as legitimate, PoW requires a cryptographic equation to be solved. As we mentioned, this is a very complex equation that not only requires specialist hardware – but it takes 10 minutes to solve.

Solving the equation verifies that transactions are correct. The transactions can then be posted to the Bitcoin blockchain – which is the network’s public ledger.

Hashing Power

Now that we’ve discussed proof-of-work – let’s move on to ‘hashing power’. This is a very important term to understand when exploring the question – Is Bitcoin mining profitable?

In simple terms, hashing power refers to the amount of computational power Bitcoin miners are able to generate. The more computation power, the more calculations that miners can make when attempting to solve the mining equation. As we mentioned, it takes about 10 minutes for Bitcoin’s cryptographic equation to be solved.

During this timeframe, Bitcoin miners use a ‘trial and error’ process. In other words, the mining hardware will guess the answer to the equation, and when it’s wrong, it will try again. This process is repeated until the correct answer is given.

Now, this is where hashing power becomes very important. The speed and number of attempts that Bitcoin miners can make are dependent on how much hashing power their devices can produce.

• For example, consider a complex algebra puzzle.
• Let’s say that you are required to use a pen and paper to solve it.
• Your competitor, however, has access to a calculator.
• The likelihood is that your competitor will solve the algebra puzzle long before you – considering they have a calculator.
• This analogy is exactly why more hashing power increases the chance of solving a Bitcoin mining equation.

However, as more hashing power is used by a Bitcoin miner, more energy demands as required. This increases the cost of mining Bitcoin – without any guarantee of success.

Hashing power is usually determined as hashes per second (H/s). When exploring Bitcoin mining equipment, you might find it’s displayed at TH/s – which is one trillion hashes.

Mining Equipment

Now that we’ve covered PoW and hashing power, let’s move on to the hardware requirements of Bitcoin mining. As we’ve established, Bitcoin mining equations are too complex for humans to solve. Instead, specialist hardware devices are required – which generate the required hashing power.

• In the early days of Bitcoin, there was very little interest in mining.
• As competition was minute, this meant that basic hardware devices were suitable.
• In fact, when Bitcoin was launched in 2009, CPUs (central processing units) were capable of mining blocks.
• This meant that people could mine Bitcoin with a conventional desktop computer.

As Bitcoin began to increase in popularity, so did the difficulty of its mining equations. This meant that GPUs (graphics processing units) replaced CPUs. Nonetheless, GPU requirements were still very affordable. Fast forward to the current market landscape and CPUs and GPUs are no longer capable of mining Bitcoin.

On the contrary, ASICs (application-specific integrated circuits) are now the gold standard. These are powerful hardware devices that are purposely built for Bitcoin mining. They offer unparalleled speed and can generate significant amounts of hashing power. However, ASIC devices are not cheap. The most advanced ASICs sell for thousands of dollars.

What’s more, one ASIC device won’t be enough to successfully mine Bitcoin. As you can see from the image above, Bitcoin mining farms have an entire production facility full of ASICs. After all, the more ASICs connected at any given time, the more hashing power that can be generated, this increases the odds of successfully mining a Bitcoin block.

Mining Difficulty 

Now that you know the equipment and hashing power requirements, we can move on to the ‘Bitcoin mining difficulty’. In a nutshell, this determines the complexity of the cryptographic equation that needs to be solved when mining Bitcoin blocks. This was introduced by the PoW system to ensure that blocks are mined approximately every 10 minutes.

If blocks are mined too quickly, this reduces the security of the Bitcoin network. Conversely, if it takes too long to mine a block, then the network becomes inefficient. With this in mind, Bitcoin will automatically increase or decrease the mining difficulty to reach its 10-minute block target.

The mining difficulty is adjusted every 2,106 blocks, which is approximately 14 days. If during the previous 14-day period the average block time was more than 10 minutes, this means that the difficulty needs to be reduced. This is usually because there were fewer active miners during the period, meaning less competition.

On the flip side, if the average block time was faster than 10 minutes, then this means that the mining difficulty needs to be increased. This is because there were more miners competing during the 14-day period.

So what does this mean when it comes to making money from Bitcoin mining?

Put simply:

• If the mining difficulty increases – so does the amount of hashing power required to solve blocks.
• If the mining difficulty decreases – less hashing power is required to solve blocks.

In an ideal world, you’ll be mining Bitcoin when the difficulty is reduced. This is because less hashing power is needed and competition is slimmer. However, there’s often a direct correlation between mining difficulty and the price of Bitcoin. When Bitcoin’s price is considered low, fewer miners are active. This is because there’s less profit to be made. Similarly, when Bitcoin’s price is doing well, more miners enter the market. This results in an increased Bitcoin mining difficulty.

To assess the Bitcoin mining difficulty and how this impacts computational requirements, it’s worth exploring hash rate trends. This shows the total hash rate requirements for the entire Bitcoin network over time. The image above shows the Bitcoin hash rate for the prior year.

As you can see, the hash rate requirements have been on a steady increase. This makes it more costly to mine Bitcoin, as increased hashing power is needed. This correlates with Bitcoin’s performance year-to-date, which has seen growth of 66%.

Mining Rewards  

We’ve covered the fundamentals of Bitcoin mining – including the PoW consensus mechanism, hashing power, ASIC equipment, and adjustments to the cryptographic difficulty. As such, we can now explore how Bitcoin mining rewards work. After all, the overarching goal when Bitcoin mining is to make money.

We’ve established that every 10 minutes, new Bitcoins are mined. This is the reward that is paid to the first miner who successfully solves the cryptographic equation. Originally, the 10-minute block reward was 50 BTC. However, every 210,000 blocks – or about four years, the Bitcoin mining reward is reduced by 50%. This is known as ‘Bitcoin Halving’.

The first Bitcoin halving event took place in 2021, meaning the mining reward was reduced to 25 BTC. In 2016, it was reduced to 12.5 BTC. And in 2020, it was reduced to 6.25 BTC – which is the current Bitcoin mining reward.

The next Bitcoin halving event is established to take place in April 2024 – where the mining reward will be reduced to 3.125 BTC. This is only an estimate, as Bitcoin blocks are never exactly 10 minutes. They can be slightly faster or slower, depending on the Bitcoin mining difficulty.

As we mentioned, based on current prices, 6.25 BTC amounts to approximately $162,500. The specific dollar amount earned by the miner varies depending on the price of Bitcoin. This is very important, as miners need to cover their operational costs. Not only for mining equipment but also electricity costs, staff, taxes, etc. Anything left over can be considered profit.

Nonetheless, most Bitcoin miners will sell their mining rewards when they are received. This ensures that the miner has sufficient cash flow to operate effectively. However, if the price of Bitcoin is too low, the miner might decide to hold until there’s a recovery.

Ways of Mining Crypto

Still wondering how profitable is Bitcoin mining? In this section, we’ll discuss the different ways that you can mine Bitcoin and other cryptocurrencies.

This will enable you to determine the viability of Bitcoin mining based on your personal circumstances.

Solo Mining

Solo mining is the traditional way to mine Bitcoin. In a nutshell, this means that you’ll be using your own Bitcoin mining equipment. You will receive 100% of all mining rewards that you receive, as you won’t be going through a third party.

However, you’ll also be responsible for covering set-up and operational costs. First, this includes buying mining equipment that’s capable of competing. As we mentioned, you’ll need to buy ASIC mining devices. The most powerful ASICs cost many thousands of dollars. And, one ASIC alone won’t be enough.

Second, remember that Bitcoin mining requires significant hashing power. This means you’ll also need to cover the electricity costs of running your ASICS 24/7. The amount you’ll need to pay will depend on the amount of hashing power being produced and energy prices in your home country.

According to the Cambridge Center for Alternative Finance, Bitcoin mining has the same energy demands as 0.55% of the global pollution. A Harvard Business Review study explains Bitcoin mining uses as much energy as the entire country of Sweden. Nevertheless, running ASIC miners non-stop will result in a significant energy bill. These are the risks you need to take should you wish to solo mine Bitcoin.

Pool Mining

If you want to have your own Bitcoin mining set up but want to reduce the risks and costs, pool mining is worth considering. On the one hand, you will still need to purchase mining equipment and cover the costs of electricity. However, you will be contributing your hashing power to a ‘pool’. Other miners within the same pool will also contribute hashing power. The amount contributed will determine the miner’s ownership in the pool.

Here’s a simplified example to help understand how pool mining works:

• Let’s say that you contribute 10 TH/s to the mining pool
• There are 20 different miners within the same pool. In total, 100 TH/s worth of hashing power has been contributed.
• This means that your 10 TH/s represents 10% of the mining pool.
• After one week, the mining pool has successfully mined one Bitcoin block – so that’s 6.25 BTC. We’ll also say they receive 0.25 BTC in transaction fees. In total, that’s 6.5 BTC
• You own 10% of the pool, so you receive 0.65 BTC

There are many benefits of opting for a Bitcoin mining pool. First, you won’t need to worry about building an entire farm with hundreds of ASIC devices. Whatever hashing power you contribute will determine your share in the mining pool. This means your earning potential correlates to the amount you want to invest in equipment.

In addition, your electricity costs will also correlate to the amount of hashing power you’re generating. So, if you’re only using one mining device, your energy requirements will be a lot more modest. However,  the drawback of mining pools is that you’ll be sharing rewards with others. Moreover, most mining pools charge fees, which will eat away at your profits.

Cloud Mining

Cloud mining is the most budget-friendly and cost-effective way to mine Bitcoin. Put simply, you won’t need to own any mining equipment at all. What’s more, you won’t be required to consume vast amounts of energy – as cloud mining is done remotely.

So how does cloud mining work? Cloud mining services are offered by established mining farms. In other words, they already have sufficient mining equipment set up that can produce significant hashing power. Cloud mining providers will sell some of their hashing power, which anyone can purchase. This is a win-win situation for both parties.

From your perspective as an investor, you can mine Bitcoin on a budget. You can often get started with a few dollars and you won’t need to own any hardware. From the cloud mining provider’s perspective, they can raise cash flow to help pay for operational costs – such as maintenance and electricity consumption.

Similar to pool mining, your share is determined by the amount of hashing power you own. For example, if you buy 10 TH/s and the cloud mining provider generates 1,000 TH/s, your share is 1%. In this instance, you’ll receive 1% of the mining rewards generated. The drawback of cloud mining is that you’ll need to pay fees.

Moreover, some cloud mining providers are scammed. Hashflare, for example, has been indicted by the FBI for a multi-million-dollar scam. To ensure you stay safe, check out our guide on the best cloud mining sites for 2023.

Mining App and Browsers 

Some mining providers have launched mobile apps, enabling you to mine cryptocurrencies on a smartphone. Hashing power is generated from your phone’s CPU. Similarly, there are also web browsers that perform the same function. Once again, the process uses the CPU built within the device.

However, smartphones and browser extensions are very limited. This is because they can only generate a minute amount of hashing power – and certainly not enough to mine Bitcoin. In fact, no credible cryptocurrencies can be mined in this way.

Another drawback is that your device will overheat and run slow when cryptocurrencies are being mined in the background. This can make your device unusable. On the flip side, mining apps and browser extensions are beginner-friendly and require no investment outlay.

How Much Money Can You Make From Mining Bitcoin?

Is Bitcoin mining profitable? The simple answer is yes – but the amount of money you can make will depend on many factors.

Let’s explore what variables can determine crypto mining profits.

Initial Investment Costs 

When assessing profitability, you first need to consider your initial investment costs. If you’re solo mining, then you’ll need to invest in suitable equipment. The costs will vary significantly depending on how powerful the devices are.

The best metric to use is the ‘cost per TH’. This is the amount you are paying in dollars for every one trillion hashes generated. The lower the cost per TH, the better. This means that your mining devices are operating more efficiently, so you’ll be working on wider profit margins.

For example, the Bitcoin Miner S19 Pro Hyd costs $2,944 and yields $16 per TH. However, the XP version – which costs $8,481, is less efficient at $33 per TH.

Operational Expenses 

Bitcoin mining equipment are fixed costs. In addition, you will also need to cover operational expenses when mining Bitcoin. The vast bulk of this will be your energy consumption.

The specific energy costs incurred depend on various factors. For example, the cost of energy in the country you live in. Some countries have access to cheap energy, while in others it’s expensive. Energy rates will also depend on macro-economic factors, such as global oil and gas prices.

• What’s more, energy consumption will depend on how much hashing power you’re generating.
• This will depend on the type of mining equipment you have and how many devices are being used.
• It’s important you can at least estimate how much you’re spending on energy when mining Bitcoin.
• Otherwise, you won’t know how much money you’re making (or losing).

In addition to energy, you also need to factor in maintenance costs. For example, if one of your mining devices needs to be repaired, this will incur a direct cost. Or, if your energy supply is temporarily cut off, this will incur an opportunity cost. All of these costs must be built into your profit and loss when assessing profitability.

Mining Rewards and Transaction Fees  

When exploring how much money can you make Bitcoin mining, you need to assess block rewards and transaction fees. After all, these are the only two revenue sources when mining Bitcoin.

First, there’s the Bitcoin mining reward itself. This is predictable income, as you always know exactly what you will receive. If you successfully mine a block reward, you will receive 6.25 BTC. In 2024, this will be reduced to 3.125 BTC.

Second, you will also receive transaction fees when mining a Bitcoin block. This is a variable revenue source, as transaction fees change depending on network demand. In the prior 24 hours, the total amount paid in Bitcoin transaction fees was $726,267.80. There were 144 blocks, so that’s an average of $5,043.52 per mined block. However, Bitcoin transaction fees are paid in BTC, not dollars. Just like the mining reward, this means you need to factor in the market price of Bitcoin.

Mining Difficulty and Required Hash Rates   

Additional variables that will determine profitability are the mining difficulty and the required hash rates. These two figures correlated with one other.

To recap:

• The mining difficulty will increase when there are more active miners.
• The mining difficulty will decrease when there are fewer active miners.

So what does this mean for your Bitcoin mining profits? Well, when the Bitcoin difficulty increases, it becomes more challenging to solve the mining equation. This means that you’ll need more hashing power to compete. In turn, more hashing power means you’ll have higher energy demands – so your electricity costs will increase.

Conversely, when Bitcoin’s difficulty is lower, there’s less competition. This means less hashing power and lower electricity costs.

Market Price of Bitcoin

Another external factor to consider is the price of Bitcoin. Put simply, Bitcoin’s market value will have a major impact on your ability to make money from mining.

After all, you’ll receive your mining rewards and transaction fees in Bitcoin, not dollars. Therefore, your actual revenues will depend on how much you sell your Bitcoin for.

When the price of Bitcoin is high, this means you’ll be making more money. But when Bitcoin’s price is declining, your profit margins will be thinner. In fact, if the price of Bitcoin is too low – this can make mining unprofitable.

What’s more, Bitcoin’s price will also correlate to the mining difficulty. For instance, if Bitcoin’s price is low, fewer miners are motivated to operate. This means that the Bitcoin difficulty will be reduced, meaning less competition and lower hashing power requirements. And vice-versa when Bitcoin’s price is high.

How to Calculate Bitcoin Mining Earnings

When exploring how to make money with crypto mining – there are two important figures to consider:

• Revenue: Bitcoin mining revenues include block rewards and transaction fees.
• Expenses: Bitcoin mining expenses include electricity and maintenance.

The difference between your revenues and expenses will determine your Bitcoin mining profits.

• Now, before we go any further, it’s important to factor in ‘mining variance’.
• This is because Bitcoin mining is very unpredictable.
• For example, you might be fortunate enough to mine a Bitcoin block on your first day of trying. However, you might not be successful again for another 40 days.
• In another cycle, you might mine two blocks in one day and nothing else for the next two months.
• With this in mind, you should assess your mining profits over a longer period of time. Otherwise, your calculations will be skewed.
• Quarterly assessments make sense, meaning you’ll calculate your revenues and expenses over three months.

So, after three months of mining (or your chosen period), sum up all of the mining rewards and transaction fees that you received. We’ll make the assumption that you cashed out your rewards as soon as they were received. This should leave you with a dollar amount – which reflects your total revenue for the quarter.

Next, over the same period, you need to tally up your expenses. The biggest expense will be the amount of electricity you consume for the quarter. If you spent money on maintenance, you also need to factor this in. You would then subtract your Bitcoin mining expenses from your total revenues. This will give you a net profit for the quarter.

That said, you will also need to factor in the cost of buying the mining equipment. Over time, your mining profits should cover your original investment. This is known as the pay-back period. For example, suppose you make a $30,000 net profit each month from Bitcoin mining. You paid $90,000 for the mining equipment. This means your pay-back period is just three months.

Leading Crypto Miners

Below, we explore the leading crypto miners to be aware of. These findings are based on the total number of Bitcoins mined in the prior month.

Data is provided by TheMinerMag.

• Marathon Digital Holdings: Based in the US,  Marathon Digital Holdings is currently the largest Bitcoin mining company globally. Last month, Marathon Digital Holdings minted 1,070 BTC. Based on prices today, this amounts to nearly $28 million worth of Bitcoin. Marathon Digital Holdings is a publicly traded stock listed on the NASDAQ. This means you can gain exposure to Bitcoin mining by purchasing Marathon Digital Holdings shares.
• Core Scientific: Core Scientific produced 965 BTC worth of mining rewards last month. However, the Austin-based mining company filed for bankruptcy in late 2022. That said, Core Scientific is still operational and is being managed by liquidators. What’s more, Bitmain – which produces Bitcoin mining ASICs, recently agreed to inject $54 million into Core Scientific.
• CleanSpark: Another US-based Bitcoin mining operator is CleanSpark. The firm’s mining farms are powered by green energy sources. In the prior month, CleanSpark mined 659 BTC. CleanSpark is another mining company that trades on the stock exchange. Year-to-date, CleanSpark’s stock price is up 84%.
• Iris Energy: Founded in 2019, Iris Energy is an Australian company that operates Bitcoin mining farms in Canada and the US. Its farms are 100% powered by renewable energy sources. Iris Energy is publicly traded on the NASDAQ, currently with a market capitalization of just $238 million. Iris Energy produced 410 BTC last month.
• Bitfarms: Bitfarms operates 11 Bitcoin mining farms in multiple countries – including the US, Canada, and Argentina. The majority of its mining rigs are powered by hydroelectricity. Bitfarms mined 383 BTC in the prior month and is listed on the Toronto Stock Exchange. Year-to-date, its stocks are up 136%.

What’s interesting about the above list is that none are based in China – which previously dominated the Bitcoin mining space. Since China banned Bitcoin mining in 2021, the majority of large-scale operators are US-based.

Potential Cons & Costs of Crypto Mining

When mining Bitcoin and other cryptocurrencies, you should view the process as an investment. Irrespective of the mining strategy you opt for, you’ll need to risk your own capital. For instance, if you’re looking to do solo mining, you’ll be spending money on specialist equipment and ongoing electricity costs. If you’re opting for cloud mining, you’ll need to purchase a contract upfront.

In all instances, you need to ensure you’re making a return on your investment. Unfortunately, there’s no guarantee that this will be the case. After all, many Bitcoin mining variables are external and out of your control. For instance, when energy prices rise, Bitcoin mining becomes less profitable. Your profits will also decline when the market value of Bitcoin drops.

As we cover shortly, you also need to factor in taxation. Most countries view Bitcoin mining as income – so you’ll need to pay tax accordingly. You might also need to pay capital gains tax when you convert your Bitcoin mining rewards to cash. This is because you’re making an asset disposal.

• Check out our guide on how to avoid crypto taxes legally

Ultimately, if you’re planning to embark on a Bitcoin mining journey, it’s crucial you get your numbers right. You’ll need to make assessments on equipment prices, energy costs, the mining difficulty, and the current price of Bitcoin.

Is Bitcoin Mining Taxed?

It’s important to understand how Bitcoin mining is taxed in your home country. We have a separate guide on crypto taxes statistics here, which covers mining in great detail.

Nonetheless, let’s go over the basics. In most countries, Bitcoin mining can attract two different tax events.

First, Bitcoin mining is viewed as income. So, when you receive mining rewards and transaction fees, you’ll need to add this to your income for the year. For example, suppose you have a $50,000 salary and you make $30,000 from Bitcoin mining. Your total income for the year is $80,000, which is taxed accordingly.

Second, the IRS notes that cryptocurrency sales are asset disposals. This is the case in most countries. This means that when you sell your Bitcoin mining rewards, you might trigger capital gains tax. This depends on the base price of the cryptocurrencies when you receive them. If you sell them on the same day, then you won’t need to worry about capital gains.

However, if you hold onto the rewards and sell them at a higher price later, capital gains will apply. For instance, suppose you receive 1 BTC in mining rewards when Bitcoin is worth $25,000. You sell your 1 BTC when Bitcoin is worth $40,000. You’ve made a profit of $15,000, which is your capital gain.

How to Start Bitcoin Mining

Wondering how to make money with Bitcoin mining? In this section, we explain the general step-by-step process.

Word of warning – solo mining Bitcoin with one ASIC device won’t be sufficient to compete – so this walkthrough is for guidance only.

Step 1: Research and Cost Analysis 

The first step is the most important – research.

• You’ll need to assess how much money you are prepared to invest in Bitcoin mining.
• You also need to consider your pay-back period. This is the time it takes to repay your original investment with mining rewards only.
• You should also assess energy costs in your home country.

Crucially, you need to assess whether Bitcoin mining is viable for your personal circumstances.

Step 2: Buy Mining Equipment  

The next step is to purchase some Bitcoin mining equipment. You’ll need to ensure the device is compatible with Bitcoin and that it generates enough hashing power to compete.

You should also evaluate the cost per TH – the lower the better. When choosing Bitcoin mining equipment – make sure it’s an ASIC.

Bitmain is the largest and most reputable ASIC manufacturer. Its Antminer S19 XP Hyd (255Th) is one of the most powerful devices available. Prices average $5,000 – depending on the merchant. That said, it’s best to buy ASIC devices directly from the manufacturer’s website.

A more affordable option is the Antminer Miner S19 Pro – which retails at $1,950. Currently, this device is sold out on the Bitmain website. You might also consider non-Bitmain ASICs – just make sure you do your research before making a purchase.

Step 3: Download the Bitcoin Core Client    

In order to mine Bitcoin, you’ll need to download the Bitcoin Core Client. This is the official desktop software for Bitcoin mining.

It’s free to download and compatible with Windows, Mac, and Linux. Moreover, the Bitcoin Core Client doubles up as a wallet. This is where your Bitcoin mining rewards will be deposited.

Step 4: Connect ASIC and Start Mining Bitcoin    

Once your Bitcoin ASIC arrives, connect it to your desktop device. Instructions should be included within the package. If not, there are lots of helpful tutorials on YouTube for the most popular models.

Next, open the Bitcoin Core Client software. You’ll first need to synchronize your device with the Bitcoin blockchain ledger. This means downloading each and every transaction from Bitcoin’s history. This will take up significant space on your desktop device.

Once activated, your ASIC will begin mining Bitcoin 24/7. You can use the Bitcoin Core Client to monitor your progress. In addition, you’ll want to keep tabs on energy costs.

Traditional Bitcoin Mining is Costly and Energy Intensive, Bitcoin Minetrix ($BTCMTX) Offers a Stake-to-Mine Solution

Bitcoin Minetrix ($BTCMTX) is pioneering its way through the crypto presale market as the first stake-to-mine crypto based on the ERC-20 chain. Starting its journey via an exclusive presale Bitcoin Minetrix is preparing to revolutionize the cloud mining industry giving participants the ability to cloud mine BTC tokens securely and effectively. 

Mustering over $100K USDT in less than 48 hours of its presale launch, Bitcoin Minetrix is showing 10x potential with some crypto mining enthusiasts flocking to add $BTCMTX tokens to their portfolios in 2023. Available to buy at just $0.011 per token there are 10 presale stages with the market price rising incrementally. 

Bitcoin Minetrix is tokenizing the cloud mining process, granting users the ability to earn income passively by staking or mining their crypto holdings. Its innovative cloud mining is also a greener alternative to the conventional Bitcoin mining methods with the added benefit of improved security through the decentralized platform. 

Bitcoin Minetrix offers a way to make Bitcoin cloud mining accessible to everyone. 

With a total supply of 4 billion tokens, Bitcoin Minetrix is offering 70% of its supply via the presale, with the rest allocated to Bitcoin mining, marketing, the community, and staking. 

Bitcoin Minetrix’s pioneering work on an unprecedented staking methodology, called stake-to-mine, does away with the need to buy cash contracts from mining organizations. This means users can avoid losing capital in contract down payments and it also clarifies doubts concerning cloud mining. 

All hash power is gained via burning the mining credits acquired via the staking process. 

The Bitcoin Minetrix platform will be accessible via a fully fledged mobile app as well as a desktop version. Users will be able to buy and stake $BTCMTX tokens at an estimated reward rate of 49,488% p/a, as well as burn credits for mining through the Bitcoin Minetrix platform. 

For more information about this exciting new stake-to-mine crypto project interested buyers can read the Bitcoin Minetrix whitepaper and join the X and Telegram channels. 

Conclusion

We’ve answered the question in full – Is Bitcoin mining profitable in 2023? Overall, Bitcoin mining can be profitable, but a significant amount of hashing power is needed. This means investing in powerful ASIC devices and consuming vast amounts of energy.

A more beginner-friendly approach is to consider cloud mining. You won’t need to buy any hardware devices – you simply need to purchase a Bitcoin mining contract remotely. Always do your own research and consider the return on investment before proceeding.

An exciting and exclusive new cloud mining project is Bitcoin Minetrix. This stake-to-mine crypto initiative offers massive staking rewards as high as 36,019%, and a greener alternative to traditional Bitcoin mining via cloud mining. Currently on presale, follow the link below to explore this innovative project and add $BTCMTX tokens to your portfolio today.

References

• https://www.bloomberg.com/quote/XBT:CUR
• https://www.researchgate.net/publication/319992548_The_Evolution_of_Bitcoin_Hardware
• https://www.kaspersky.com/blog/cryptoscam-fake-antminer/39398/
• https://www.blockchain.com/explorer/charts/hash-rate
• https://ycharts.com/indicators/bitcoin_total_transaction_fees_per_day
• https://ccaf.io/cbnsi/cbeci
• https://hbr.org/2021/05/how-much-energy-does-bitcoin-actually-consume
• https://www.fbi.gov/how-we-can-help-you/victim-services/seeking-victim-information/seeking-victims-in-the-hashflare-investigation
• https://www.cnbc.com/2022/12/20/bitcoin-miner-core-scientific-filing-for-bankruptcy-will-keep-mining.html
• https://www.barrons.com/market-data/stocks/clsk?mod=md_funds_majorHoldings
• https://www.wsj.com/market-data/quotes/IREN
• https://www.reuters.com/world/china/china-central-bank-vows-crackdown-cryptocurrency-trading-2021-09-24/
• https://www.cnbc.com/2022/11/25/new-york-is-the-first-state-to-ban-certain-types-of-crypto-mining.html
• https://www.irs.gov/businesses/small-businesses-self-employed/digital-assets

FAQs

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Kane Pepi

Kane Pepi is an accomplished financial and cryptocurrency writer who has an extensive portfolio of over 2,000 articles, guides, and market insights. With his expertise in specialized subjects such as asset valuation and analysis, portfolio management, and financial crime prevention, Kane has built a reputation for providing clear explanations of complex financial topics. He holds a Bachelor's Degree in Finance and a Master's Degree in Financial Crime, and is currently pursuing his Doctorate degree, which focuses on investigating the complexities of money laundering in the cryptocurrency and blockchain technology sectors. Kane's wealth of knowledge and experience in the field make…

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