Is Bitcoin Mining Profitable ?river.com/learn/is-bitcoin-mining-profitable/
110 sats \ 2 comments \ @0xbitcoiner 27 Nov 2023 bitcoin

TABLE OF CONTENTS

  1. Mining or Buying Bitcoin
  2. What Influences Bitcoin Mining Profitability?
  3. Price Dictates the Best Time to Mine Bitcoin
  4. How Do I Get Started Mining Bitcoin?

KEY HIGHLIGHTS

  • Bitcoin mining has evolved into a capital intensive endeavor and a competitive industry.
  • Mining profitability depends on the hardware model, price of electricity, price of bitcoin, and the number of miners on the network.
  • Household electricity costs are normally far too high to allow profitable mining.
  • There are stark differences between mining bitcoin in a bull market versus mining in a bear market.
Whether a Bitcoin beginner or multi-cycle veteran, the prospect of earning the internet’s scarcest resource through mining it is certainly exciting. That being said, there are a number of considerations one must make before determining whether mining is right for them. This article analyzes the different factors associated with mining bitcoin profitably, and provides the first steps to get started.
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24 sats \ 1 reply \ @Zepasta 27 Nov 2023
Mining profitability depends on the hardware model, price of electricity, price of bitcoin, and the number of miners on the network.
This seems to be a mistake. The profitability of mining isn't influenced by the number of miners, but rather by the difficulty.
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12 sats \ 0 replies \ @0xbitcoiner OP 27 Nov 2023
It only makes sense if the number of miners varies the hashrate, which in turn increases/decreases the difficulty, which in turn makes mining cheaper/more expensive. But I agree that the number of miners alone does not make mining profitable, I think the author was referring to hashrate.
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