Although small-time Bitcoin miners are having an increasingly challenging time keeping up with large bitcoin mining companies, there is still profitability and business opportunities awaiting. As Bitcoin’s acceptance continues to blossom worldwide, the demand for Bitcoin will likely follow suit. Since the start of 2020, the value of Bitcoin has risen from $29,833.61 to $49,111.90, presenting an unforeseen opportunity for long-term profitability.
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How to invest in crypto?
As a Bitcoin miner, you are uniquely positioned to capitalize on the bullish growth of Bitcoin while earning block rewards. For every Bitcoin block mined, the miner who solves it first earns a block reward of 6.25 Bitcoins. In years past, the block mining reward was 50 BTC, but due to the Bitcoin code implemented by Satoshi Nakamoto, these block rewards have been halved every four years (25 BTC in 2012, to 12.5 BTC in 2016, to 6.25 BTC in 2020). The next estimated halving date is March 6th, 2024.
Therefore, as a small-time miner, if you happened to solve the Bitcoin block first, you will have received 6.25 BTCs, which is worth around $300,000. However, the downside to this opportunity would be that over the years, Bitcoin mining competition has risen significantly. This has been partially fueled by ASIC, which has enabled large companies to secure low-interest loans to acquire the best mining hardware.
As a result, many small-time miners are being outperformed by these larger organizations. Statistically speaking, with the Bitcoin Network Hashrate and the best BTC mining hardware, a WhatsMiner M20S ASIC miner has a 1 in 1,570,588 chance of completing a Bitcoin block. If you compute those figures with how one block is mined every 10 minutes, you may wait over 15 years to mine one block.
However, business profitability is still incredibly possible for bitcoin miners who approve transactions on the blockchain. While a WhatsMiner M20S generates around $11.35 in Bitcoin revenue every day (Income ~$21.03 (-) Electrical Costs ~$9.68 = $11.35), you’re still generating an annual income stream of $4,142.75. Minus that cost from the price of the WhatsMiner M20S (~$2,000), and you’re left with $2,142.75.
With a lifespan of 2.5 to 3 years, you can generate a 2.5 annual income of over $8,300. Here’s where this opportunity gets interesting, though. Should BTC continue its bullish growth, that $8,300 BTC income (if kept as BTC) could appreciate a value of $9,553,798, should Bitcoin continue its two-year growth period of +1,151.06%.
