The short answer to that question is a simple “yes, bitcoin mining is still profitable”. In reality, though, there’s a little more to it than that. If you just want to find out how to earn easy passive income from Bitcoin mining, skip to “How to do I join a mining pool?”.
Those who got into bitcoin mining early on could easily earn 50 BTC per day from mining in the comfort of their own homes, using their existing computer hardware. Back then 50 BTC wasn’t worth that much but, at the time of writing, it’s worth just under 2 million British pounds.
Don’t be disheartened if you missed out early though, it’s still possible to earn passive income from mining Bitcoin in 2022, as long as you have some money to invest and/or a willingness to learn a few basic principles.
How does Bitcoin mining work?
To understand how Bitcoin mining works, you first need to understand the concept of blockchain. Blockchain is a type of database, which stores data in blocks that are chained together in chronological order. Blockchains are most commonly used as a ledger for financial transactions. In decentralised blockchains, such as Bitcoin’s, the data entered is irreversible, usually referred to as being “immutable”.
Put simply, Bitcoin mining hardware is what people use to earn Bitcoin. What the miners are actually doing though, is helping to build and secure the Bitcoin blockchain, as well as issue new Bitcoins and confirm blockchain transactions. As a reward for doing so, miners are rewarded with 6.25 bitcoins. This will reduce to 3.125 bitcoins after the halving of 2024. The miner that solves the puzzle first gets the reward, with added transaction fees.
What is mining hardware?
Miners are essentially computers that have been specially built to perform one function; mine cryptocurrency. The more powerful and energy-efficient your hardware is, the more profit it will make.
ASIC (Application-Specific Integrated Circuit) miners are the most commonly used Bitcoin mining hardware nowadays. This is because, as the blockchain puzzles have become more difficult to solve over time, traditional GPU and CPU mining is not efficient enough to net a profit anymore. Generally speaking, each ASIC miner is designed to mine a specific type of cryptocurrency.
The increase in blockchain problem difficulty also means that having just one, or even a handful of ASIC miners, still isn’t enough to make a profit after you account for the cost of the hardware and the electricity used to power it.
To stand a chance of making a profit using mining hardware nowadays, you need to join a mining pool. A mining pool is where lots of miners pool their hardware resources together to solve blockchain puzzles faster and therefore stand more of a chance of earning their chosen cryptocurrency.
How do I join a mining pool?
There are a number of different mining pools available to join online and add your own hardware resources to the pool. However, you don’t necessarily need to purchase your own mining hardware to join one. There are a number of cloud mining platforms available, where you can simply invest money or Bitcoin to purchase hardware within an existing mining pool. This is a great way to get involved with Bitcoin mining, and is highly recommended if you’re just starting out.
With one such cloud mining platform, Shamining, it takes just 24 hours for your miners to get set up and come online after you’ve made your payment, and they’ll start mining Bitcoin for you and making passive income the second they come online.
This is a great way to get started with Bitcoin mining as you only need to make a small investment and it requires no technical knowledge or messing around with hardware. It’s very much a set-it-and-forget-it passive income solution.
Not only that, but Shamining provides you with an easy-to-use dashboard that shows you exactly how much profit you’re accumulating on a daily basis, and makes it easy to add new miners as and when you’re ready to invest some more money.
Once you’ve bought a miner, it will continue mining for you for one year. At the time of writing, Shamining will earn you an average of 143% return on your investment over the course of a year. Also worth noting is that Shamining’s data centers run on green energy, making it one of the most environmentally friendly ways to mine Bitcoin.